Monday, May 20, 2013

The Pope Calls Free Market Capitalism The Cult Of Mammon Responsible For Global Suffering

“The Pope loves everyone, rich and poor alike, but the Pope has the duty, in Christ’s name, to remind the rich to help the poor, to respect them, to promote them.”

Another editorial on the Pope’s speech titled The Pope and Godless capitalism.  I like this editorial because I have often characterized the corporate state as Godless, which it clearly is.

And lastly "The capitalist morality is a rejection of God.

I have decided to interrupt my posting schedule to put this up.  I often wonder what level of human decency exists in the Vatican but apparently it is still able to rise to the level of a public lashing of corporate capitalist criminals and the criminal politicians who rig the system for them. 

One of the Pope’s recent statements in his excoriation of the “cult of money” is that “money should serve rather than rule”.  The only way that is ever going to happen is with democratic, public banking and democratic, public money that has an intent of serving democracy and human development.  This is the moral crisis of our time as written on here literally hundreds of times over the years.  And that means capitalism or private, for-profit capital must go.  Human development, economic freedom and democracy will never be served by class-based, private, profit-driven interests.   There is no precedence for it and there never will.  

This speech is very important.  There are over one billion Catholics in the world and most Catholics view the Pope as the Holy Father or moral leader.  Whether he is or not is irrelevant.  Beliefs create reality.  And dare I say, it’s not too much of a stretch to state that most people on this earth view their spirituality as a higher authority than corporate capitalism or the corporate state.   The Pope’s statement really isn’t something new.  I have heard countless religious and spiritual leaders, priests, ministers, rabbis, monks, etc talk about the injustices and human suffering caused by corporate control and private capital.  ie, Corporate capitalism.  Prior Popes have rebuked capitalism and Marxism but never to this degree.  At least not that I am aware of.  But then never has the evil of private, for-profit capital been so viscerally exposed and never has their control over the world been so universal. 

Really what this comes down to is the cult of money as noted by the Pope.  Without money most corporations simply would not exist.  Most companies don’t serve society or human development.  They are vacuum cleaners that exist to do nothing more than suck up money.    Without money most major injustices in the world would not exist.  And organized criminal syndicates would likely disappear.   Let’s be honest.  Many corporations today are nothing more than organized crime syndicates.  Whether that is a company that exists to patent food or a genome or a Wall Street firm that gambles with other people’s money or a fast food restaurant that pays nonliving wages and serves up toxins for profit. 

I  have had friends and readers laugh off my remark that someday money will disappear.  Forever.  They can’t see that world existing.  Just because you can’t “see” it doesn’t mean it will never come to pass.  History is full of changes and inventions that no one could see coming.  This entire crisis is based on that dynamic.  In fact, that is history.  Most people’s minds become their prisons as they live in a fear-driven (control) reality created by the ego or manufactured self.  And that prison steal’s the mind’s ability to create and dream.  The day that money disappears will happen.  It’s just a matter of when.  And it will likely happen not because of virtuous choice but because of necessity or crisis.  Do you need money to build a car or house or grow food?  The only reason we need money is to create a system of class and control.  A system of exploitation, violence and predation. 

Rich and poor alike?  The rich respect poor people?  Are you kidding me?  Even though the Pope and Vatican’s statement is rather pointed, there remains a vein of political correctness in their statements that veils truth.  I would guess that is to protect the income stream from rich Vatican donors.  Remember, the Vatican too serves mammon whether that is money, real estate holdings, investments, hierarchical power and control over other people, etc.   Every hierarchical institution of the ego or of man serves a primary intent of control rather than discovery and truth.  

The rich have seldom ever respected, protected or promoted the poor.  Or more broadly, it’s really about respecting, protecting and promoting those whom the ego believes is of a lesser class.   If they did, there would be no poor.  I can think of a few examples.  Eunice Kennedy Shriver started the Special Olympics.   By the way, donating some part of a fortune is not really selfless nor is it about respect.   That is, unless it’s done anonymously.  Otherwise, getting your name on a new hospital wing is always about the donor receiving ego-stroking.  How many people give away their fortunes anonymously to help impoverished people?  And even when those cases exist, how much of it is simply ameliorating the ego’s guilt for having so much excess in a world where so many have so little?  Is this selflessness that comes from the mind’s higher power?  It is truly love, respect and concern for our fellow man?   

The modern world of science and its associated productivity is a world of abundance and there is enough for everyone.  Scarcity or lack of supply that exists today is a control-based myth perpetuated by class and illegitimate authority.  When it comes to food, shelter and healthcare or the basic necessities of life, there is ample abundance.   The patriarchal capitalist system that has existed for half a millenium doesn’t just not respect poor people, but its endless overt and covert violence preys on and exploits poor people.  This class-based system of control could never exist without that predation and exploitation.  Private capital sucks the excess work or intellectual capital, or as they like to call it, surplus value from those it exploits for monetary gain.  That is only how class ever exists.  And austerity today is the attempt by the world’s class-based capitalists and the class-based politicians who selfishly do their will, to steal literally every ounce of dignity and humanity that  impoverished people have left in order to  save their class rank and wealth.    

Certainly all people are worthy but many are disconnected from their higher power or their humanity and thus are capable of tremendous ego-driven rationalizations and its endless evil.  As John Dalberg-Acton wrote, many people of class believe they are more worthy than others – “great men are almost always bad men”.  Once you understand how becoming “great” in a class-based society involves somehow taking from someone else or compromising your own humanity, then it’s not too hard to appreciate that money, class and power are the root of all evil and that great men are indeed almost always bad men.  Or, at least most supposedly great men suffer from greater delusions of narcissism, psychotic behavior, greed, covetousness, exploitation, predation, violence, victimization, etc.  In other words, the endless evils of the ego.

Actually if we are talking in “Christ’s name” as the Vatican remarks above, then one should consider what Jesus of Nazareth said as it pertains to topics that overlap with poverty, class and capitalism.  That is, to release oneself  from the evils and suffering of attachment to money, fame, worldly possessions, class and the ego-driven identity we derive by being part of the social system that exalts these ego-driven values.   For the only way to achieve a higher level of enlightenment or divine connection to the universe is through releasing the ills of the ego.  There is a reason that the documented teachings of Jesus of Nazareth were almost always from the countryside.  Well, except when he went into the temple to confront those that had turned a sacred site into a free market capitalist moneychanger enterprise.  There is some indication his sect of Judaism rejected society for all of its ego-driven evils and suffering and instead chose to live completely outside of society and its worldly influences.   Social values are transient and generally determined by the values of class and title.  Human values are timeless and are derived by our own divinity or higher power that exists inside all people.  Even if we are disconnected from it.  That is, mercy, respect,  kindness, acceptance, compassion, equality, dignity, etc.

One cannot serve God or our higher power or selflessness or our own divinity and mammon as private, for-profit capital always has and always will through exploitation, predation and victimization.    A world today driven by the exaltation of money certainly is evil.   It is no coincidence we see truly unprecedented evil on every continent and nearly every country around the world today as global, deregulated, private for-profit capital terrorizes untold numbers of humanity, the natural world and our planet.

Any time anyone tells you that basic human needs and basic human dignity cannot be met for all people because there is not enough money available, as is the case today, even though the technology (productivity), food, shelter or healthcare facilities are available to meet those needs, that is nothing but ego-motive and its manifestation of evil.   At least that is evil as defined by the Sermon on the Mount - the moral teachings of Jesus of Nazareth. 

Regardless of what or whom you belief Jesus of Nazareth was, he certainly was not a card-carrying member of class-based, profit-driven, free market capitalism.  And apparently he died owning nothing nor having any money.  I do believe that was a conscious decision from what I understand.  Neither was Guatam Buddha nor any of history’s great divine, enlightened or spiritual beings card-carrying members of capitalism or its exploitative and predatory class-based values.  

We know where Jesus of Nazareth probably would be if he were living in capitalist America today.  He’d be living down at that local homeless shelter because he rejected all worldly possessions, consumerism and money.  He wouldn’t be dining with the moneychangers on Wall Street or the criminals in Washington who wage endless war or do the moneychanger’s evil.  In fact, good class-based capitalists would surely have him arrested if he happened to veer a little too far into their gated communities and rebuked them for their idolatry of mammon.  And if he got too uppity and his message became too popular, thus threatening their power, class and authority, they would certainly destroy his reputation with lies and deceit or even murder him as has happened so often whenever someone threatens this system.  Just like the ego-driven elites and the status quo  did 2000 years ago. 

I find it hilarious that power and the state has always exploited people of Jewish faith as those who killed Jesus of Nazareth.  It’s the same type of exploitation we see of different “classes” of minorities in the U.S.  be they black, red, yellow or white or the common trait of often being denied a living wage and human dignity and thus are unable to consume all of capitalism’s make-work.   So, to the corporate state they are part of the disposable society I have written about.  This mythology regarding Jewish people serves power’s purpose of dividing and controlling people by creating boogeymen and diverting responsibility.  Of keeping people beaten down to maintain class and wealth as happened when the state adopted Jesus’ teachings for purposes of control.   It’s such textbook behavior for predators. 

The reality is all Semites loved Jesus of Nazareth during his life because he gave those who were exploited power through realizing and accepting their own divinity.  It was the class-based status quo who killed him.  Because it served their purpose of maintaining class, wealth, authority and control over society and humanity.  It was the religious, state and business leaders of the day that his message of equality, kindness, mercy, freedom and detachment threatened.  But what really chapped their ass was that Jesus of Nazareth taught people that the greatest power in the universe resides inside of each person and the world around us.  That message sucks for those who wish to maintain class and control.  Because the only way class and control can be maintained is if the masses outsource their own divinity or power to those who wish to exploit and victimize them.  Once people realize they have the power within themselves to be free and worthy, class and authority can no longer exist.  Only law based on natural rights.  That’s what really threatens our masters.  Because without emotional bondage placed there by those who wish to control us, the human mind is free, divine and all-powerful.  True freedom exists within the mind.  That’s why they killed Martin Luther King.  It’s the reason tanks mowed down thousands in Tiananmen Square.  The same would certainly happen to Jesus of Nazareth were he alive today.  Or anyone else whose truth gained or threatened to gain a large audience against those who exalt the cult of money, control, class and power over discovery, truth, decency, freedom and human values.  Just as they did 2000 years ago.

Class-based, private, for-profit corporate capitalism appeals to humanity’s most unevolved, unaware, unmindful, unenlightened, unspiritual part of our psyche.  That is, the ego.   Which, by the way, is why the most unevolved, unaware, unmindful, unenlightened and unspiritual people rise to levels of authority within the class-based system of control that has defined our world pretty much since the beginning of time.  It’s also why modern capitalist society is dying.  Because being driven by the exaltation of our unevolved psyche or the ego over our own divinity, it truly is Godless.

The time has come to rid ourselves from the class-based control of private capital over democracy.  It is time for economic freedom, public capital and public money.

What we witness today is truly a battle between good and evil.  Will we continue to live in a world driven by the unevolved ego?  Or as our perceptions of reality are destroyed will we evolve to a world based on our higher power or the evolved human psyche?  ie, The Age of Aquarius?  The answer is B.  But first we have some unfinished business.  More on that in late June or July.

posted by TimingLogic at 10:33 AM links to this post

Friday, May 17, 2013

Stupid Is The New Black–Tesla Stock Worth More Than Fiat

The only reason someone starts an auto company is because of passion or stupidity or both.   Sometimes that combination actually can be a winning one for obvious reasons.  That is, if you are passionate enough, you can often create solutions to large obstacles.  If one contracts much of the component engineering and/or production to the massive excess capacity of auto suppliers, it certainly is possible to start an automotive  company comparatively cheaply.  ie, The excess infrastructure, engineering, production and design capacity exists and that can allow for a reasonably low-cost startup when using a prudent sourcing, engineering and design strategy.   In fact, Tesla probably could not even exist were the economies of scale and excess capacity within the auto supplier and auto industry not to already exist.  It uses a former GM facility and its stamping equipment to build its cars and in a bout of corporate cooperation, Toyota formed a joint venture with Tesla to share battery packs with its RAV4 in addition to much of the other supplier-provided componentry it uses.  But battery advances are happening so quickly Tesla almost certainly will have to change its strategy.  And, at what cost to a startup in a very capital intensive business?  Future manufacturing and production innovations may  make the success of smaller auto firms a reality but today building a sustainable boutique auto firm is challenging at best.   Tesla relies heavily on the existing overcapacity in the auto industry just as Fisker did. 

I certainly have no desire to minimize the accomplishments of Tesla Motors.  In a financialized world where temporary perceptions of wealth are created through pushing paper, they actually make something of value.   And they seem to have gotten a lot right.  That said, I suppose anyone with a guaranteed government loan and a few dozen laid-off automotive designers and engineers in the Detroit area could probably start a car company.   But this is a very tough business and that is the reason why more people aren’t starting auto companies.   There are large barriers to entry and as noted in many posts over the years the capital requirements to sustainably engineer, design, build, maintain and service a single automobile model are very substantial.  The cost to actually build a sustainable auto company are even more obscene.   Any single leap in technology could leave a startup with limited capital lagging competitors or worse.  And without deep pockets, it’s hard to catch back up.  Tesla is essentially a single model auto experiment that has yet to prove its sustainability.  Personally, I wouldn’t classify it as a legitimate auto company.  Yet.  They haven’t even begun to tackle the endless red tape and legalese of dealership franchise laws.   And that’s just the beginning. 

Over the last five years Tesla’s cash flow has never been positive and it has deteriorated  500% in that period of time.  Now some of this may be explainable as they ramp up production but then again, taking ten years to ramp up production isn’t going to lead to success.  Additionally, Tesla benefits from government subsidies for electric vehicles or it would be an even tougher road to profitability.  And although Tesla reported a minor profit this past quarter, it is bleeding cash at a very rapid clip.  In other words, Tesla already needs to raise more capital.  So, just a few days ago the company announced it was going to issue more stock and debt.  And its founder was going to purchase $100 million in shares at this price.  Even though that means stock and value dilution, the shares exploded higher.  Ahem.  Obviously, the rationale for a higher stock price would be that Tesla needs more cash so its business must be good?  Ha!   The reality is there is no rationale other than financial manipulation.  Tesla is lucky that credit is extremely loose right now thanks to the money-pumping Fed that is recreating more future crises.  If the economy turns south again, Tesla’s cash flow problem won’t be easily solved as a company with a cash flow problem isn’t likely to be able to easily tap credit markets, if at all.

“The stock (Tesla) is trading like it’s 1999 and we’re in the Internet bubble again,” said Maryann Keller, principal at consulting firm Maryann Keller & Associates in Stamford, Connecticut. “It has nothing to do with Tesla’s fundamentals. It has to do with pie-in-the-sky aspirations that don’t reflect the realities of the auto industry.”   -- Maryann Keller, auto analyst

It has been half a dozen years since Maryann’s name has come across this blog but she’s the real deal.   I used to write extensively about the auto industry and my knowledge of its   operations is competent.  Maryann is the only auto analyst I trust.   Let me also addend Maryann’s remarks.  Tesla’s stock price is really more of a reflection of too much leveraged money chasing too few financial assets rather than pie-in-the-sky aspirations although one could proffer that they are on in the same.  Aspirations matter not if there is no speculative money bubble to ram Tesla’s stock to the moon.  One of my long-time theses on here is oil is headed for a price collapse as the reality of this cycle reveals itself.  The fundamentals behind that thesis are starting to line up quite nicely yet no one believes this is possible because propaganda has conditioned people to believe we have run out of carbon-based energy sources.   If that happens, electric cars are likely to head the way of the Dodo bird without some very substantial propping up by government.  I suspect government will have its own problems that will be too distracting to worry about electric car subsidies.   Then there is the small problem of the largest money bubble the world has ever seen and that it has no reflection of true wealth.  As central banks torch their currencies, the future for expensive cars may not be a very compelling one.   These factors may mean the limited resources of Tesla could very well lead to its demise given it is exclusively an electric car company without the intellectual capital, operations, money or lines of credit needed to adjust.  ie, Their $90,000 electric car may serve nicely as a dual purpose boat anchor.

Wall Street is now valuing Tesla Motors at a higher worth than Fiat.  Tesla has produced 10,000 cars in ten years.  Its current electric car with a price tag upwards of $90,000 has received great reviews.  I have no doubt it is a great car for the price of a home in many markets.  But let’s get real.   Fiat makes 20,000 cars a day.  Literally.  (Well over 4 million a year)  That includes the brands of Ferrari, Alfa Romeo and Maserati. (drool)   The new Alfa 4C may be the most beautiful car ever made and its going to be $35,000 less than a Tesla when it hits showrooms in a month.  Plus it will be powered by an internal combustion engine which I consider to be a plus when it comes to sustainability.  At least given current technology and developing macro factors.  Bigger surely is not better when comparing Fiat to Tesla.  And as noted on here many times, this cycle will likely see the demise or substantial shrinking of many large corporations.  That might even include Fiat.  But critical mass is very important in a highly capital-intensive business.  Fiat has that critical mass.  It’s intellectual, design, engineering and production capital are staggering comparatively.   That Tesla is worth more than Fiat is absolutely ludicrous Wall Street bubblenomics.   That Tesla’s owner has agreed to buy another $100 million of stock at this price shows how this current generation really has no idea what the future holds for them.  They have lived in a money bubble for so long that most have no idea what reality looks like. 

Tesla’s stock price is simply another reflection of the endless distortion of financial assets that defines our criminal financial and monetary system.  Endless speculation has driven Tesla to a level that is absolutely ludicrous while the city of Detroit, as just one counter example, has greater than 50% unemployment.  ie, The United States’ citizens of Detroit are denied access to society’s capital needed to become productive, inventive, creative and self-sufficient contributors to democracy while private, for-profit capitalist financial predators steal our democracy’s money to manipulate Tesla’s stock for their own outrageous fraud and paper profits.  Who wins and who loses? 

What did the United States’ citizens of Detroit do to deserve their enslavement to poverty and injustice?  Absolutely nothing.  Victimization is inherent to class-based, private for-profit capital.   So Tesla’s management, the investor class,  hedge funds and investment bankers become richer for doing absolutely nothing productive while tens of millions of American citizens rot.  All the while democracy loses its economic vibrancy that would be gained by empowering the citizens of Detroit and elsewhere.    For now.  These endless frauds and schemes are just perceptions of wealth and just like every other financial bubble and every other false perception of reality, eventually the illusion disappears and reality reveals itself. 

This is the same type of financial fraud that defined the Internet bubble and almost everything in our economy since the Reagan administration-created S&L crisis.  In fact,  we have a current  generation of uber wealthy who have all been benefactors of the massive fraud that defines private, for-profit capital and its deregulation.  Untold numbers of companies came public in the 1990s with no real business model and no earnings whatsoever.  Untold hundreds of thousands of people defrauded society by going public and looting the treasury with the help of Wall Street during the deregulated Clinton era.  Just as untold numbers have defrauded society since with ever-more financial schemes and bubbles.   Many of these people are considered our corporate and social leaders today because money talks when democracy is for sale.  The corporate state wrongly considers class-based wealth as a barometer of intelligence and so those who have the money make the rules and that means the rules are going to reinforce their continued accumulation of society’s resources.   It’s everywhere. 

Seemingly nonfinancial firms are just as complicit.  Even firms like Google that are benefiting from the massive ad bubble.  Their IPO price and subsequent revenue and earnings are all driven by a larger dynamic of financial fraud created by the money bubble.   Were these not bubblenomic times, Google’s IPO price, ad revenue and profit may be 10-20% of what it is today.  Google itself may be completely unaware of this dynamic and running its firm by the rules but it still contributes to economic aberrations and manipulation by assigning paper wealth to people that isn’t actually real.  As noted on here countless times, that too will pass when the corporate ad bubble pops and/or the dollar loses its reserve currency status.  (Although Google, like every other deregulated capitalist firm large enough to manipulate governments rigs the rules and cheats democracy whenever it can get away with it.  Just another example of what has been written on here time and again.  Corporate tax receipts are at the lowest levels since at least the 1950s.  They are probably the lowest in history but I don’t have data going back that far.)

These dynamics are representative of our financial and corporate capitalist system’s endless crimes of treason and crimes against humanity.

No assets on Wall Street are valued at any level of reality.  We haven’t seen stocks priced at fair value in decades.  Which is one reason why my long-time downside target for the S&P is and remains at 200-450 or its 1990-1995 price levels.  It’s all one big Ponzi scheme in the biggest financial bubble the world has ever seen. 

We need a public banking and financial system whose primary intent is to serve democracy and human development and not financial looters, corporate masters, crony networks, criminals and predators.  

posted by TimingLogic at 11:35 AM links to this post

Monday, May 13, 2013

Global Capitalism Running Off The Rails - Timely Remarks About Corporate Earnings, Financial Assets And The Global Economy

I want to start this post off by reminding readers of remarks made by Treasury Secretary Hank Paulson back in 2007 before the collapse.   I remember Paulson giving a TV interview where he waxed poetic about unprecedented strength of the global economy and unprecedented global prosperity.  When it comes right down to it, Hank was truly an ignoramus as are most politicians and corporate bureaucrats.   Contrarily, I had been writing that the world was experiencing the biggest bubble in history, the world would shudder and shake when this cycle ended and that all of the wealth created under globalization could very well disappear.  It certainly wasn’t because I was some genius but that I had my eyes open to the reality of what people like Paulson created.   By the way, that was an incredibly lonely position at the time.  Again today we see a similar type of optimism within the establishment bureaucracy as the perception of a post-crash asset recovery unfold.   (We are seeing extreme levels of speculation in equity futures & derivatives markets as I type this.  The looters are showing nearly unprecedented levels of arrogance and risk-taking in their actions regardless of any blow about this being a “hated” rally.  I’m still comfortable with a projected peak in equities in the middle or second half of this year.)  But how the world has changed from that pre-2008 perception of global prosperity under which  Goldman Sachs was telling us it was doing God’s work.   Now, while we see the perceptions of recovery in the assets controlled by corporations and elites, we now also see unprecedented poverty and strife as the world burns at the hands of politicians, private for-profit bankers and corporate capitalists.  Yet what I see in my experiences is that most people who are doing extremely well under this system have closed their mind to what is going on around them.  The ego can and does rationalize anything, especially when it comes to its its belief systems involving attachment.

Unlike 2008, today countries around the world are experiencing structural economic crises that cannot and will not be fixed under global capitalism.  Yet hot money fresh coming from Europe in lieu of the Cyprus confiscation, hot money rolling out of falling commodities, central banks seeking higher returns, hedge funds & global banks and the endless leveraged manipulation of the carry trade are fueling artificial demand and the associated  speculative rise in global asset prices.  Mind you, all of this is occurring without an antecedent rise in wealth.  As the always brilliant-less Alan Greenspan has been quoted, rising asset prices creates the confidence of wealth needed for people to go out and spend.  Of course, reality is that only true social wealth creates sustainable, rising demand for assets.  Simply more of the illusions created by the renter class that owns all of the assets.   We have now seen over 300 stimulative central banking and policy-driven programs around the world meant to bail out the small number of people who control the world’s assets while allowing widespread misery and poverty to flourish. 

I  now appreciate how much I underestimated the mind-boggling corruption that defines class-based corporate capitalism and the captured global political class of thugs that does its will.  I certainly never believed politicians, bankers or corporate bureaucrats were virtuous but the entire world is clearly run by an unprecedented global class of criminals whose common shared interest is in serving class-based private, for-profit corporate capital(ism) at the expense of human dignity, human rights, economic freedom and democracy.

Asset prices have seen large rises recently and U.S. equity prices, as one example, are now the second most expensive in the top 30 world’s exchanges and the most expensive in the developed world on an expected future earnings basis.  As I noted on here many times before the 2008 collapse, on a fundamental basis the U.S. equity market was many times more expensive than the market in 1929.  You know, before it fell 90+%.   Corporate fundamentals have deteriorated significantly since and financial assets, including equities, are now even more overvalued.  Eventually, the illusion of financial markets/assets and the reality of the underlying economy will recouple.  That is, true wealth is not a function of highly-levered, fraudulently-manipulated financially-engineered asset prices that provides perceptions of wealth and control for a small number of renter-class royalty.  

I want to remind readers that I have noted on here that some day the stock market in our nation will disappear.  Forever.  That it is not necessary to a functioning democratic, merit-based economy.  Frankly, it has become a detriment to a functioning economy as noted on here through many dysfunctional dynamics.  One must consider that this cycle could be that some day.  So while many talk of investment haircuts or market corrections, there is a much greater reality that exists.   Haircuts and financial asset declines could be 100% and permanent on many, if not all, markets.   If you understand my posts stating that we are likely living through the end times of  capitalism, just as we recently lived through the end times of communism, then you must appreciate that capitalism’s funding and financial mechanisms will ultimately disappear as well.   This is not a prediction but a serious possibility that no one is considering.  It will happen some day.  The only question is when.  (My long-time downside target on the S&P remains 200-450 if capitalism  makes it through this.  As time goes by it has become ever-more apparent to me that it likely won’t.)

Let me also remark of those who are now calling this the start of a  new bull market.  As noted on here before, we cannot be at the start of a new bull market because the companies, markets and technologies don’t yet exist for that to happen.  And the existing corporate structure of control, political bribery and market-rigging ensures that will never happening under this current reign of corporate terror.  We must see new ideas, new innovations, new economic opportunities, new markets and massive new employment opportunities from these innovations and opportunities for a new bull market to appear.  Otherwise, this is nothing more than the existing debt-based illusion of capitalism’s overconsumption, overproduction, money printing and financial fraud that serves only illusions to keep the current capitalist class-based power structure in place.  Are we about to see a new bull market in PCs, genetically-modified foods, healthcare that serves little to no benefit to society, military spending, portable phones, financial speculation, overconsuming more overproduced, toxic junk from China and the overproduction of antidepressants and liquor to numb society into surviving another bout of this psychotic corporate-state-controlled world?  And is this going to create tens of millions of high-paying, wealth-creating new jobs in the U.S.?  Or more marketing, advertising, political consulting, lobbying and finance jobs?  Need I even answer that?

That is, at this very moment corporate balance sheets across the board are deteriorating at a rate not seen at any time in the last twelve years.  Yes, that's right.  Worse than anything experienced under George Bush.   This ties in very nicely with my game theory post that corporations are headed for a massive hard landing and that many major corporate names will very likely disappear in coming years.  - My July 18th, 2012  post titled “Buffett Breaks His Cardinal Rule And Invests In IBM”

Two months after I posted the above remarks Thomson Reuters announce the largest downward earnings revisions since in the last eleven years.   It was the first quarter that the S&P 500’s cumulative revenue growth turned negative since the 2008 crash.  S&P 500 revenue contraction is an unheard of dynamic.  Well, it was until 2008.  Now we have seen it twice since as results this quarter have also been horrible for many multinationals.  Again, today the S&P’s cumulative revenue growth is being reported as negative as financial assets and equity markets make all-time highs. 

To give some indication of how disconnected financial markets currently are from reality, let’s look at some very disconcerting and deteriorating economic highlights from around the world in 2013.  These highlights are starting to confirm large disturbances in the global capitalist overproduction (and resultant required overconsumption) bubble that appears to be starting to pop.   

  • Copper demand, as noted on here many times as a proxy for the global economy, has collapsed in China.  Demand in China is 35% sequentially on a monthly basis, an unheard of decline.  The price of copper has been declining for years and was down 34% from its peak as inventory has exploded for the first time since the housing bubble peak.  In the last week or so, prices have moderately recovered on a reflex rally.  China’s most recent trade results are completely bogus and people are starting to understand how deregulated capital and hot money is severely manipulating China’s Ponzi trade numbers.   The Chinese ministry of propaganda, caught with its pants down,  has finally acknowledged this.  As I noted leading up to the collapse of its stock market bubble in 2008, the communists had lost complete control of their economy and their money.  Soon thereafter we saw a massive collapse in their equity markets and their overproduction bubble as tens of thousands of factories were shuttered.  The same dynamic is building today as the communist central planners have again lost complete control.  Remember, deregulated capital(ism), aka free market capitalism, is the precursor for all capitalist-created economic disasters and it is the key component to the U.S.-China free trade or looting agreement.  (Remember, as noted on here at the peak of copper’s bubble back in 2008, copper costs 7 cents a pound to mine.  It was selling for $5 a pound at the time.  Copper and all commodities are being manipulated by Wall Street as I have written on here ad nauseam.  Copper will almost certainly fall 80-90% still from these prices.)
  • Excess crude oil supply imbalances are now the greatest in recorded history.  In other words, the world is now awash with the greatest excess supply of crude oil in history.  Even more than when crude was $10 a barrel in 1998.  (A long term thesis on here is that crude is likely going back to somewhere around $10-20 a barrel.)  And gasoline demand in the U.S. is falling at the fastest pace since the 2008 collapse.  As noted on here ad nauseam, peak oil like anthropogenic global warming is a myth.  And Wall Street manipulating petroleum prices is a foundational element of hoodwinking people into this propaganda just as similar junk science-propaganda is behind human-caused climate warming.  This has been a consistent thesis on here for the last eight years and now many people are finally starting to understand how true this really is.
  • Semiconductor companies are seeing bookings for new equipment often fall precipitously, margins implode, large amounts of business deferred and may be ready to  revert back to the dominant trend of the last few years of falling revenues for the entire industry. (As noted on here many times over the years, I hate technology stocks.  Most companies are last year’s dead wood.)
  • Caterpillar’s earnings were down 50% and revenues are down dramatically.  Asian demand for heavy constructing and mining equipment is down a whopping 25%.  So much for those distorted China trade numbers showing a massive increase in exports.  Massive collapse in demand for construction and mining equipment and associated commodities is impacting the entire commodities and cyclical/industrial business complex.
  • Most recent data on exports of U.S. corn are down the most ever recorded at –54%.   So much for Monsanto dominating the world.  Is this a trend and a sign of rejection of GMO food and food slavery by corporate America?  It’s too early to tell.  But I have written on here that we could most certainly see starvation around the world as this system unwinds.   Of course, this could simply be production arbitrage or  corporations shifting production of GMO corn to South America where costs are much cheaper. 
  • Vladimir Putin just remarked of an “alarming” economic slowdown in Russia. 
  • Greece and Spain have just reported record unemployment and Italy just formed a government that cannot govern while Germany’s economy continues to slip with every euro nation’s production contracting.
  • Commodities across the board peaked two years ago and have been falling ever since.   For that reason, it should be surprise to anyone gold aka anti-democratic money of which the majority is controlled by criminal central bankers, copper or anything else is falling. 
  • The Chicago Business Barometer just reported the lowest reading in the last three and one half years.
  • Taiwan, Japan, South Korea and Singapore are all seeing industrial production shrink and factory orders fell to a seven month low in the U.S.
  • IBM’s server revenue imploded 17% and the CEO blamed it on salespeople not moving fast enough.  That’s clearly wishful thinking.  The same dynamic is being reported at other companies including the night-of-the-living-dead zombie, Dell.   (Remember, last June I wrote that IBM was putting in a major top.  Maybe its last top.  Forever.  This past quarter IBM missed earnings for the first time in eight years and reported its single-day largest share price drop in a decade.  It’s just the beginning.  It’s going to get much worse for business technology, software and consulting related corporations.   Most of these companies are dead wood that have been pulling proverbial rabbits out of their hats for a long time.  Rabbits that really create little to no quantifiable return on investment or productivity enhancements for clients and almost no value to society but that allow their profit schemes to stay afloat.   These companies have transformed into bureaucracies that serve little purpose other than enriching their executives and a place for its countless workers to collect a paycheck.  Just like the massive, state-backed Soviet corporations.)
  • IT outsourcing and business process outsourcing, BPO, contracts have collapsed and are down over 30% globally in this last quarter, a staggering drop. (Again, I wrote years ago that the BPO, IT outsourcing, Indian outsourcing/software bubble story was peaking and we were likely to see a major shift against this business.  Not only are we seeing revenues collapse, but Congress is now considering legislation that could start putting nails in this business model’s coffin and in India’s software, BPO and outsourcing bubble.) 

These are simply examples.  While there are many financial-related and service-related companies still doing well, these companies rely substantially on corporate cash and usury for their profits.  They are benefiting from the central bank reflation bubble.  Additionally, these businesses consume wealth and capital rather than create it.  They take money and wealth out of the economy and out of our pockets.   They either consume or destroy wealth and jobs.    They are that loud sucking sound that is simply part of the renter class that enslaves democracy to private, for-profit capital.  Most of these are companies and jobs our society would be better off not having.  Then our wealth could be spent on more productive outcomes that benefit our citizen’s and community’s quality of life.

The above highlights are not small perturbations in the global economy.   These are growing crises and large shifts that are a result of huge drops in overproduction (and resultant overconsumption) and associated capitalist business demand.  As is often cited with military bureaucrats for their closed-mindedness and ignorance, the Federal Reserve and other central banks are still fighting the last war.  ie, Their concern about providing bank liquidity to ensure there is no repeat of 2008 is the war they are still waging.  It is the last war and not the current war that should be waged to stave off future crises.   As discussed on here ad nauseam, 2008 was not a banking or financial crisis as incompetent bureaucrats in politics, economics, Wall Street, central banks and university professors in the economics, business and financial community have told us.  It was a crisis of capitalism.  And now we are starting to see exactly that with global capitalist production and global demand beginning to recouple with the initial signs of large declines.  What, pray tell, are central banks going to do to stop the fall of capitalism and its endless overproduced make-work?  Buy copper and then dump it back in mines?  Then mine it again and dump it again?   Or buy computer equipment and then scrap it?  Then buy some more and scrap some more?  Or buy more real estate and bulldoze the massive oversupply of commercial and residential development?   That’s essentially what has been happening for the last 30 years.  That is, corporate capitalism’s endless make-work.  And bankers are once gain lowering borrowing standards to re-ignite even more demand for make-work.  What’s next?   Maybe they’ll bring George Bush out of retirement to tell Americans to go out and spend their welfare check to buy more overproduced make-work.  Or a house or a car or more junk made in Chinese sweatshops as he did after 9-11. 

So, if we take into account last September’s earnings were a result of horrible 2012 3Q results, we haven’t really seen any growth in almost a year.   As noted on here ad nauseam, a service economy cannot grow.  Period.  A fact lost on everyone in politics, finance and economics who keep seeking these growth-at-all-cost policies needed to inflate away their massive debt bubble.  In fact, a service-based economy is why we have this debt bubble and horrendous wage growth in the first place. (I’ll show you mathematically why a service economy cannot grow at some point.  And how it is tied to slave wages.) 

Most of the perceived economic growth in the last 30 years is mythical.  It was based almost exclusively on excessive money printing and the resultant accumulation of our massive debt bubble to keep this system from dying.  Remember, I have harped on here countless times that U.S. economic activity peaked around 1980.  That’s an important date I will continue to point to until I come back with a very substantial post on why it is so important.  And it is important in ways you will never read anywhere else. 

That we have seen hundreds of monetary stimulus actions around the globe since the 2008 collapse is simply confirmation of thirty years of failed global economic policies are now careening out of control.  It’s preposterous to blame this on George Bush as so many liberal idiots do.   Not that Bush did anything but continue the same failed economic policies of Reagan and Clinton.   The ever-increasing speed and size of these required stimulus policies that must be employed to keep capitalism’s wheels from running off of the rails shows how incredible unstable global capitalism is.  I’ve called this part of the “quickening” before.   It’s exactly what one would expect of a complex system that has passed the tipping point.  ie, Greater and greater instability requiring more and more force or stabilization (stimulus) efforts unfolding at a faster and faster pace.  For conspiracy theorists who believe events in the world today were planned by global elites, you have to be kidding me.  No one can plan and control anything with trillions of moving parts.   Instead, these are simply reactionary measures by the status quo in an attempt to maintain their control over the global production and finance system, and as a result, over us.   They are simply forcing austerity onto the rest of us in order to try to maintain what must inevitably end.  That is, their class-based overproduction and overconsumption Ponzi scheme.  They too will be joining the rest of the world and experiencing a collapse in perceived wealth, status and success.  Just like 1929 when the vast majority of the elites, bankers and capitalists living large and enjoying the overproduction and overconsumption of the Roaring 20’s ended up destitute.  Again, another long-time thesis on here.

With more than 300 stimulative polices announced around the world since the 2008 collapse we still see global unemployment is rising as are economic disturbances.  That includes in the U.S. where the employment ratio and other real-world measurements continues to point to a massive structural crisis regardless of the pablum puke Obama, dimwitted Democrats, political propagandists, the mainstream media and corporate bureaucrats feed us.   And global production peaked back in 2008.  That means the majority of jobs created since are low-wage, benefit-less slave labor jobs created in the mythical service economy.   Essentially what this tells us is that no amount of money has had any effect in saving the global economy.   All it has done is recreate bubbles, not the least of which are financial assets and real estate.  They’ve thrown unprecedented resources at this system and it’s once again failing at an alarming rate.  Just as I have said it would countless times.  This is not a crisis that can be fixed by the Federal Reserve; the elites, corporations, politicians and other benefactors of this scheme can’t be saved by the public-private fascist partnership, the Federal Reserve, that has allowed them to continually loot the public treasury.

DOWDAX

Dow Jones Industrials & German DAX (in green)

DAX

Australian dollar/Japanese Yen & German Dax (in green)

Let’s once again look at an update of charts shown on here before.  The Australian dollar/Japanese Yen carry trade along with the German DAX and Dow Jones Industrials equity indices.   The correlation is 100%.  You don’t need a PhD to understand why all assets are correlated down to minute-to-minute actions in financial markets and headed higher.  For now.   It’s not because the economy is doing well.  It’s unprecedented leverage taken from the carry trade and flooded into already levered financial derivatives, futures and assets along with the unprecedented spending of the people’s money to save the corporations and elites that owns all of the world’s assets.  Period.   In other words, it’s incredibly leveraged, artificially-manufactured financial engineering meant to bail out the most leveraged bubble of all.  That is, that 1% of the population controls the other 99% by defeating democracy, creating economic slavery and indebting us to a system of usury and graft.   The leverage in this “financial engineering” is unknown to anyone but most certainly more than one hundred to one and in some cases possibly even more than one thousand to one by the time the wages are paid at that Chinese iPhone sweatshop.  

The reflation trade is only meant to bail out trickle down economics.  To bail out those who have stolen all of the world’s assets and wealth so that they can maintain their perceptions of control and wealth.  That is, class-based, private, for-profit capital(ism).   These are the only people (and corporations) who really own all of the assets being reflated by massive leverage, money printing and central banks.  That includes gold, by the way that is almost completely controlled by central banks and global elites.  There is no true wealth behind any of these monetary and economic stimulus actions or in the rising price of financial assets.  It’s just an illusion created by manipulation and looting.  By artificial levered demand.  A massive concerted Ponzi scheme meant to save global private, for-profit capitalism and private, for-profit banking and our elite masters.  A Ponzi scheme that terrorizes billions who have to stay alive in this hell.  A hell created in the minds of megalomaniacs, psychopaths and predators who have enslaved us to its madness.  This illusion will certainly pass as all illusions do.

This latest quarter’s results are pointing to very large disturbances once again building in an uncontrollable and inherently unstable complex system.  It’s all working out exactly as I have been writing it would for the last eight years… albeit slower than I expected. But then I never could have predicted hundreds of stimulus actions by the bankers and capitalists using the people’s money and the associated increased taxes/fees/costs/usury/austerity to save themselves while having not a care in the world as the rest of humanity deals with the death, misery and suffering of its wake. 

The world power structure of the state and its invention of class-based economic looting and slavery -  private for-profit corporate capitalism - that runs roughshod over human rights and freedom is and always has been truly evil beyond words.  Since democracy’s attempted regulation of capitalism has been completely gutted starting with Reagan and substantially more so under Clinton/Gore, who literally burned capitalism’s regulatory structure to the ground, we now stand witness to its most glorious manifestation of pure evil in its complete deregulation.   It is perfectly predatory, exploitive and violent.  It is perfectly psychotic as are the people who defend it.

This current environment is much worse than anything leading up to 2008 and it is worsening.  Just as I said it would be.  And it’s across the globe just as I said it would be.  When I first wrote the end game for the global economy would involve most crises being outside of the U.S., that was a very, very lonely position.   The 2008 Wall Street crisis then made it even more lonely because that was perceived as a U.S.-only financial crisis.  Can you remember how peaceful and prosperous the world seemed just a handful of years ago?  How the world has changed.  It is literally on fire.  And so have the perceptions changed for almost everyone from peace and prosperity to utter madness and chaos.  Just as quickly as perceptions changed from the pre-2008 crash to one of awareness at the world’s crises and misery, the current crises and misery could be constructively ameliorated were virtue, truth, public service and selflessness  to replace psychotic politicians, bankers and corporate executives in the determination of humanity’s way forward. 

As has been uniquely written on here ad nauseam since the 2008 crash, globalization and global finance are dead.  2008 was the final nail in the coffin.   We are simply witnessing  capitalism’s last, best attempt at saving itself rather than serving, protecting and defending the populations it is  supposed to be serving.  

Change you can believe in.

posted by TimingLogic at 9:59 AM links to this post

Sunday, April 21, 2013

Cycle Of Volatility Update - Nine Magnitude 6 And Above Earthquakes In The Last Week

One in Vanuata, two in Papau New Guinea, three in Russia/Japan, one in Japan, one China and one in Iran/Pakistan.    Two were reported as 7+ and a third was initially reported at 7 but the final rating seems to be between 6.6 and 6.9.   This is the highest concentration of magnitude 6+ earthquakes I can remember seeing. 

Again, regular postings to resume in May or June.

posted by TimingLogic at 10:26 AM links to this post

Tuesday, April 09, 2013

The Bank Of The South, U.S. Dollar Hegemony, Waning Corporate Empire, Capitalism’s Tipping Point And Venezuela’s Upcoming Election

This is a very long post and may be my last for a while.  I’ll be back.   Probably May or early June at the latest.  If the title topics are of interest, the most pressing analysis of what is really happening today is near the end.  This is a pulling together of countless posts over the years and an expansion of many topic discussed on here.  I generally don’t provide such level of detail about certain topics because of the endemic plagiarism and pilfering on the internet but today I’m sharing an unfiltered stream of conscious post.  Frankly, I decided to do this after reading David Stockman’s recent NYT editorial glorifying the good ole days of capitalism.  This is truly hilarious and completely unhinged from reality.  Although I appreciate and respect Stockman for his unvarnished honesty and share his outrage at how morally-bankrupt the corporate state is.   They have certainly abrogated their moral authority and thus have forfeited their moral right to serve the people.   

I doubt you will read anything similar to much of the later analysis below.  Especially many of the points made with regards to what I suspect is the coming demise of “free market” corporate capitalism’s reign of terror.  That is, unless I am subconsciously channeling someone else in my analysis.  I surely can’t be the only person who understands some of the dynamics that are endemic to capitalism that are pushing it to the brink of self-destruction but those within the current system, both bulls and bears, both supporters and detractors, are often very biased in their perceptions of reality.   Many people are limited by what others tell them is real.  Too many let others define their reality by outsourcing their thinking.  Reading what confirms our beliefs and surrounding ourselves with like-minded people instills roteness, conformity and ideology into our perceptions of truth.  And it does so unknowingly without the mindfulness of our own ego-motive.  This obviously imprisons our perceptions to fit within an ego-defined control structure or false belief system.  Ego-motive is nearly all consuming within people who have benefited from this system unless they have somehow experienced some crisis of conscience that allows them to awaken to greater truths.

The below analysis of corporate capitalism and its likely collapse, similar to communism and the Soviet-bloc structure, is unique and it is based on factual contradictions inherent within its structure.   Capitalism is essentially a finite-state machine that is used as a control system.   Capitalism is in a finite state today that is very, very dangerous.  There is no way out of the current state without the use of force.  If you don’t understand the concept of a state machine, think in terms of playing chess, which is essentially a finite state machine.  Your opponent has just checked you.  Being chess is based on control, your next moves are limited to a finite number of states.  Any of those moves could very well determine checkmate.  Game over.   If checkmate happens, we are likely to have global monetary crises as well as the end to capitalism.  Not a dollar crisis.  A global crisis.  Something I have been writing is imminent for the last seven years as the dollar trade settlement system is overdue to freeze up, collapse, disappear, etc.

I hope this post gives many readers a greater perception of the extent of the false reality that exists in the world today.  A false reality created through political and economic control. Remember, control is but an illusion.  It exists no where else but in your mind.  And it is created only through false perceptions of reality  One day all of us will awaken to a completely different reality.  A return to truth will happen.       

Let me make one more remark before continuing to the post.  Below I use the term state quite frequently.  State as in the artificial system of control or organized polity that enslaves people around the world today.  Not to be confused with the finite-state machine remarks above.  For new readers or even existing readers, as a reminder to my voluminous posts on the state, my definition of the “state” is that organized political bureaucracy which exists outside of self-rule or local-rule.  It is a class-based bureaucracy that serves itself.   It is  that political bureaucracy which is hidden from the view of self-rule and citizen government.  In places like North Korea, the state is nearly an all-consuming manifestation of the polity.  There really is no appreciable self-rule or local rule in North Korea.  A simple way to explain the differences between the state and self-rule is that the state derives and maintains its existence through force & violence and democracy derives its existence through the consent of the governed or self-rule and a rule of law based on natural rights.  That is, nature-given or God-given rights that limit the lawless violence of the state and allow us to live as we would were the state nonexistent.   ie, As nature intended.  In today’s world, I would have to say the vast majority of the activities of organized polity around the world are highly statist.   There is very little true self-rule or freedom or polity based on natural rights anywhere in the world today.   What there is plenty of is force and violence that defines the state and gives it purpose.

“I spent thirty-three years and four months in active military service as a member of this country's most agile military force, the Marine Corps. I served in all commissioned ranks from Second Lieutenant to Major-General. And during that period, I spent most of my time being a high class muscle-man for Big Business, for Wall Street and for the Bankers. In short, I was a racketeer, a gangster for capitalism.

I suspected I was just part of a racket at the time. Now I am sure of it. Like all the members of the military profession, I never had a thought of my own until I left the service. My mental faculties remained in suspended animation while I obeyed the orders of higher-ups. This is typical with everyone in the military service.

I helped make Mexico, especially Tampico, safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefits of Wall Street. The record of racketeering is long. I helped purify Nicaragua for the international banking house of Brown Brothers in 1909-1912. I brought light to the Dominican Republic for American sugar interests in 1916. In China I helped to see to it that Standard Oil went its way unmolested.

During those years, I had, as the boys in the back room would say, a swell racket. Looking back on it, I feel that I could have given Al Capone a few hints. The best he could do was to operate his racket in three districts. I operated on three continents.”   --  General Smedley Butler, 1933, Author of War is a Racket: The Profit Motive Behind Warfare

How wonderful it is to read Smedley Butler wax poetic about the good ole days of capitalism.   If we could only return to those good ole days of a century ago when capitalist economic slavery was the norm.  Or maybe two hundred years ago when the king’s corporate capitalism led to the Revolutionary War.  Well, and when capitalism’s economic slavery was supplemented by outright human ownership, human trafficking and indentured servitude to serve our capitalist masters.   

Let’s start with a follow-up to my post on the BRICs trade clearinghouse bank meant to replace the IMF and World Bank.   In that post I remarked of Chavez’s death and that of eight other South American leaders since 2009.  All caused by cancer.   Let me say that I’m not a Chavez advocate or detractor.  I have no dog in the hunt of vilifying or worshiping him.  Regardless, I suspect he was much more virtuous than the CIA, the American military-industrial complex and most American politicians.  Especially since he came out publicly against America’s policy of murder and war as a method of spreading freedom.  I would also say that it’s apparent to me that Venezuela under Chavez was much more free than our nation currently is.  And the fact that American politicians despised him so much is some level of proof to me of that reality.  Regardless, the people of Venezuela should be allowed to decide their own democratic fate and elect whomever they wish.  And that is what they did against the wishes of the United States corporate and political interests.

We are going to see an election in Venezuela to replace Chavez in less than a week.  U.S. politicians have meddled in Venezuela continuously and there is some evidence the CIA tried both to kill Chavez and then overthrow his democratically-elected government some years ago.  Do your own diligence but you’ll find substantial evidence of this effort that is consistent with past U.S. meddling in Central and South America as Smedley Butler notes above.  And for the exact same reasons.  That is, corporate power.  Obviously, since we live in a country where the state is the source of endless secrecy, and self-rule is dead, we don’t really know exactly what is going on in Washington, or for that matter, any of our state capitals.   But we do know there is enough circumstantial evidence to investigate U.S. meddling further.  That is, if we had a functioning form of citizen government capable of doing so.

The U.S. appears again to be involved in attempting to manipulate this Venezuelan election. (By the way, international election organizations have participated in onsite election monitoring and have sanctified Venezuela’s elections as honest and valid; something that has never happened with U.S. political hypocrites who are constantly meddling with election laws, voting rights, election districting, etc.)

I bring this up because Venezuela’s election is very important for many reasons not well understood by most.  America has essentially operated under the Monroe Doctrine for almost 200 years.  Not exactly new news for most.  That is, Central and South America are fair game for American intervention whenever we deem it appropriate as noted in General Butler’s comments above.  That intervention has typically been on behalf of American corporations rather than any form of true justice or self-rule.  That policy has led to constant meddling, murder, mayhem and puppet governments in Central and South America courtesy of U.S. politicians and its violent, covert corporate-capitalist-inspired operations.  Some of this was certainly rationalized because of past European colonial, capitalist and then Soviet communist meddling.  But, two wrongs don’t make a right.  It was also the basis of Ronald Reagan’s arms for hostages crimes that apparently may have involved selling crack cocaine to African-American communities in America.  Chavez’s election was a karmic response or blowback to that endless meddling that has created massive poverty and injustice while keeping entire nation’s beaten down by American debt enslavement and corporate capitalism.  And,  importantly, as it pertains to this post and this topic, Chavez championed The Bank of the South and maybe even more importantly, started selling Venezuela’s massive oil reserves to China in yuan thus threatening the lynchpin petrodollar and global U.S. corporate, military and financial hegemony.

The Bank of the South is an institution very similar to the BRICs effort that I wrote about a week or so ago.  This bank, formalized in 2009, is meant to get the IMF and World Bank, U.S. institutions of corporate hegemony and debt enslavement, out of South America and to replace the dollar in South American trade with a common settlement currency system designed to encourage economic development rather than economic colonization and exploitation.   

The IMF and World Bank have been used by U.S. politicians to enable American corporations to loot, manipulate and dominate South America for the past 65 years.  But that policy really gained traction in the last thirty years since Reagan institutionalized neoliberalism or comparative financial advantage as an economic policy and used the dollar trade settlement system to enforce it.   It just so happens that of the five of the founding seven member nations of the Bank of the South have seen leaders die of cancer since it was conceived a handful of years ago.   Coincidence?  We just don’t know.  But given The Bank of the South would shut out U.S. corporations, the military-industrial complex, financial institutions and the hegemony of U.S. power, there certainly are very serious reasons to be suspicious. 

My point is that with Venezuela championing these efforts at South American independence from U.S. corporate, military and political power, and its substantial threat to the petrodollar, it certainly made Chavez and his hand-picked successor candidate enemy-number-one for the U.S. corporate state.  Just as Iraq, Iran and Libya that also announced plans to move away from dollar trade settlement.  Without oil settlement in dollars, what else is left?   The dollar reserve currency will fail without oil settlement; our nation has nothing anyone wants to buy with those dollars except real estate.  Well, and a few other glorified, Soviet-style, state-backed industries.  In a nation that has institutionalized a policy to murder its own citizens when deemed a threat to the state, is it really hard to imagine murder being a possibility when anyone’s actions, even if legitimate, threatens to bring down the American corporate empire and the military-industrial complex?

This upcoming Venezuelan election is worth watching.  There is little time for the U.S. to destabilize the country before elections but I am quite certain they are trying their damnedest as I type this.  Just as they have done in Libya, Iraq, Iran and anyone else who has ever threatened petrodollar hegemony or American corporate state interests.   I guess all trade is free trade as long as it involves dollar and American corporate enslavement.  That clearly includes within our nation’s borders as well as around the globe.  You know, just like all trade was free trade in 1776 as long as it was backed by the British Empire’s private, for-profit bankers debt-based money and controlled by the British trading and land corporations.  Corporate capitalism at its finest.

It is actually globalization and the dollars created through the current trade settlement system which is driving another U.S. real estate bubble as I type this.  ie, Dollars accumulated by other nations through the dollar reserve currency status or global trade settlement are rushing back into the U.S. to buy the only tangible products we actually “make” that other nations and their elites can buy with their trade settlement dollars.  That is, military weapons, genetically-modified foods, financial products & financial transactions (mergers & acquisitions, stocks, bonds, U.S. intellectual property, etc)  and real estate; all reflating their respective bubbles.  For now.

American bureaucrats in political and corporate positions have actually subverted our citizen’s property rights and, as payment for maintaining their global empire they are allowing noncitizens (foreign corporations and foreign elites) to buy American real estate, intellectual property, publicly-owned corporations, sold off public assets in distressed municipalities and states, etc.  as a form of hush payment or legalized bribery to maintain their empire.  This while millions of Americans are being shoved out of their homes and denied their own property, economic and democratic rights.   Most of these foreign elites are benefactors of American corporate neoliberalism.  They include thugs, mafioso, drug lords, dictators, communists and murderers to name a few.  The Saudi elites are major buyers of U.S. real estate, foodstuffs, financial products and weapons as an example.  Regardless, almost all foreign and domestic investors rushing back into American real estate have benefited from American neoliberal hegemony in some form or another.  A capitalist system of economic slavery.  Even if they have no idea they are, in fact, supporting it.  Hegemony that suppresses global self-rule and freedom. 

This is why China, Russia and Japan have acquired so much in dollar-denominated Treasury debt with their surplus trade-settlement accounts.  Not that their statist economic policies are any more virtuous because they certainly are not.  But there is literally almost nothing else for them to buy with the amount of dollars they have accumulated.  What else are they to do with dollars other than burn them for fuel or buy real estate, weapons, foodstuff or American intellectual property, stocks, bonds and corporations to maintain their own mercantilist-statist schemes? 

The fact that equities and real estate are once again pushing higher as the U.S. economy has record poverty aren’t bullish signs at all.  They are proof points that the dollar trade-settlement system is failing - monetary velocity temporarily screams higher in these sectors due to an excess dollar glut of capitalism’s globalization while money is nearly nonexistent in the U.S. capital-creating and capital producing sectors that actually drive wealth creation for our nation.  This is no coincidence.  It is contrived by politicians and corporations.  On that note, if you think the “newfangled” service economy creates wealth or even surplus value, you really are deluding yourself.  It may create marginal but economically-undefinable value but there is little, if any surplus in doing each other’s laundry.  That fact will expose itself in due time.  Of this I am completely certain.   The mythical service economy is nothing more than another scheme rigged by the dumbed-down political and corporate clowns who created this mess. 

Isn’t it hilarious to listen to faux economics fanatics talk about the need to avert trade wars after the 2008 crisis?  That it was these supposed trade wars that caused the Great Depression and we must not repeat history; a statement I have clearly remarked many times on here is nothing more than propagandized nonsense.   Corporate capitalism is in itself a constant, covert system of violence.  Capitalism is itself a never-ending trade war.   Corporate capitalism, an invention of the state, is a constant source of violence, predation and exploitation.  It is inherent in its structure.  As an invention of the state that is enforced by the state, capitalism was a control system created by European feudal lords to loot the world.  It is a nondemocratic, statist, class-based control system that was devised by elites to maintain their grip on economic and political power while exploiting the only method they had to accomplish this.  That is off of the labor of the masses, be they slaves, indentured servants, born without class rank or corporate-controlled assets that we now call employees.  And after their political monarchies fell, it was the only way they maintained their structure of class, title and wealth.  

Europe is still enslaved to the same elites since the fall of aristocratic, feudal Europe less than a century ago primarily due to corporate capitalism.  Who do you think is causing the austerity crises targeting the middle class and those without a voice aka the impoverished in Europe?  The same aristocratic  families and elites that were once part of the ruling class of feudal lords, private for-profit bankers and corporate capitalists.  The same forces that started World War I for reasons of maintaining capitalist empire, power and class.  There is almost complete social stratification in Europe.  It is the same stratification that has existed for 500 years.  It is a system of dead weight at the top where the wealth remains concentrated in the same aristocracy that has always existed.  Corporate capitalism is a major source of this transgenerational aristocracy.   Corporate capitalism, as it has always been practiced, (not as a democratic, merit-based economy needs to be) is not consistent with self-rule or freedom.   We see that in the endless injustices created by capitalists in Europe today.  The reality is corporate capitalism is the last vestige of European feudalism that remains with modern societies and it almost certainly in the process of dying just as another violent and repressive state-enforced control system, communism, did.  Just as monarchies and birthright privilege did.

I have noted on here before that this control system can only continue with the use of greater and greater violence and force.  You must appreciate how this dynamic is required to maintain any inherently unstable, complex finite-state-based system that continues to destabilize.  We see this around the world with excessive, almost unbelievable use of force by the most outrageously outsized- military the world has ever seen.  A military that serves a primary intent of enforcing a dollar-driven global control system rather than America’s defense or global democracy.   We see similar force being applied to Europe, the founders of corporate capitalism, as it too spins out of control.  This excessive force is necessary or the system would destabilize out of control.  Without the use of force, we would have already seen the end of dollar hegemony and American corporate empire and a birthright-privilege-driven aristocratic Europe long time ago.  That said, I wouldn’t be so certain that Russia, Venezuela, China or any external factor will destabilize this system.  Some see this so clearly they believe a dollar collapse is inevitable.  The U.S. control system is beyond historical precedence.  It is massive in its power and has countless adherents, global elites and leaders, who have become rich off of this exploitative system.  Rich at the expense of the vast majority who have suffered needlessly.  You know, Adam Smith’s invisible hand of self-interest. 

I seriously doubt any nation or nations can take this system down.  The U.S. has knocked them off one by one whenever their threat became large enough.   The only force large enough to potentially stop this system is corporate America’s colony, China.  But doing so would come with grave consequences for the communist elites.  Remember, while there have been countless people calling for a dollar collapse, the long term thesis on here written of countless times is the dollar is putting in a major bottom and likely to rise violently at some point.  I said it before 2008, when it rose violently during the crash, and evidence based on fact (supply & demand) still supports this outcome.  The dollar doesn’t need to collapse for this system to fail.   It may be counterintuitive to many but it certainly is the most likely outcome given how this system is constructed.  Remember, this system eventually will fail for no other reason than it requires greater and greater force, exploitation and predation applied not only to other nations but to the American people not because a prospective dollar collapse.  To me, the most plausible outcome for this system is the Soviet or Roman Empire outcome of failure from within due to the endemic contradictions or instabilities of this control system.  

Saving this system is impossible once the chain-reaction of destabilization has reached critical mass.   The only question is when did or will that happen.  There is ample evidence that happened under Reagan for many reasons.  That includes the ideology that Reagan took mainstream that government deficits don’t matter.  This was clearly forbidden in Bretton Woods because other nations recognized that excessive money creation by the state would lead to empire.  Hence the limiting factor of gold backing agreed to in Bretton Woods. (The Triffin Dilemma is not a necessary function or outcome of this system as many have incorrectly remarked it is.)   That said, the original Bretton Woods system was doomed to fail at some point because gold as a form of global trade settlement does not work under capitalism for many  reasons.  Given that capitalism is an invention of the state and relies on the force of the state to survive, and that private, for-profit capitalism is driven primarily by the need for greater and greater profit, a dynamic also driven by force, all that happens under a gold trade settlement system is that the game becomes which corporate state can acquire all of the world’s gold or all of the world’s profit.  Now, can anyone tell me how this exploitation benefits your fellow man in other countries?  Taking their profits for your nation’s self-interest?   Is this self-rule or consistent with spreading self-rule?  Well, gold trade settlement also permanently enslaves impoverished nations to its capitalist masters and creates exploitative and predatory capitalist mercantilist and colonialism policies.   There are certainly other major flaws in this system as well.   Gold is not democratic money as explained on here countless times.   It is a control system of looters and lords.   

The desire for the profit-motivated capitalist state to acquire all of the world’s gold is what led to the U.S.’s disproportionately enormous Great Depression collapse when it had successfully accumulated most of the world’s gold or its profits in 1929.  This was nothing more than state-sponsored economic warfare.   The policies that created this dynamic were exploitative, predatory and violent.  This is endemic to private, for-profit corporate capitalism created and enforced by the state.  If you are an ego-motivated capitalist, then you certainly have no problems with exploiting other nations or people.  But, the intent of discovery and truth recognizes others around the the world were exploited and preyed upon in order to loot the world under this dynamic.   Is the intent of garnering the majority of the world’s profits, and in the process exploiting its resources and peoples,  really any different than bombing another nation into submission?  Is it any different than American military interventionism on behalf of capitalism we see today or which Smedley Butler opined about a century ago?  Clearly these corporate capitalist principles are not consistent with democracy, freedom, self-rule, humanism, human-centric philosophies or any of the world’s religions.   Well, other than the religion of ego-motivated selfishness and immorality.   It’s the same insanity that has created today’s mess.

Contrarily, you might consider that China’s state-driven trade policies today are the exact same policies that pushed the U.S. economy into a total collapse starting in 1929.  China’s state-enforced, predatory, violent, mercantilist capitalist policies have looted the world of its gold (U.S. dollars in today’s capitalist trading system) and it will pay the consequences with its massive capitalist production overcapacity.  Something no one seemingly understands as the dumbed-down economics, political and financial communities continue to wax poetic about China as they do about free market capitalism.  Once again, debt is not the issue the world or any nation is facing.  Don’t believe mainstream media, financial oligarchs or politically-contrived myths planted by the criminal class who enslaved us to this debt.  

Reagan clearly abrogated the U.S.’s legal responsibility to the rest of the world by institutionalizing the policies that deficits didn’t matter.  This clearly created both a military and corporate empire and broke the intent of the dollar-based global trade settlement agreement with violent, exploitative, predatory institutionalized economic policy.   (Yes Nixon broke the gold peg for benefit of waging American wars but Reagan institutionalized it with formal economic policy and with the massive military spending needed to create and enforce corporate capitalist empire.)

The Reagan administration’s use of the IMF and World Bank as blunt objects of Reagan’s militant foreign policy was also an abrogation of that legal responsibility to Bretton Woods partners who agreed to use the dollar to settle international trade.  This was the first truly institutionalized use of these systems as extensions of militant American economic warfare rather than being used as they were intended for global development and global good.   This overt and intentional change created by Reagan’s policy enforced the dynamic of American-created neoliberal-economic/financial-comparative-advantage between nations that enslaved global production to declining wages and American empire.  It also created the dynamic of debt & austerity used as a political tool to “loosen” up global assets in developing economies for American corporate theft.  This enabled U.S. elites and corporations to loot the “developing” world.  Like in Central and South America.  Like Venezuela.  Chavez clearly came to power as backlash to Reagan and Clinton’s neoliberal policies.  (The Reagan administration  also looted the Social Security Trust Fund and middle-class Americans to pay for tax breaks for corporations and elites.   The Reagan administration was comprised of the greatest number of criminals in history as noted on here before.  Is it really any surprise politicians renamed an airport in Washington D.C. as Ronald Reagan National Airport?  He gave megalomaniacal American politicians unprecedented power and purpose by creating empire.) 

Now it is just a mere formality as to when this control system fails.  In other words, George Bush senior was right at the time to call Reagan’s economic policies voodoo or nonsensical.  But he was right for the wrong reasons.  ie, His remark that deficits did matter was defined by the support of a faulty, anti-democratic, private for-profit, debt-based monetary system.  That said, we certainly don’t want the state to spend all of our money which simply enslaves us to a ruling class like the Soviet Union or the British Empire or as Reagan and all politicians have since. 

The reality is U.S. capitalism was collapsing right alongside Soviet communism during Reagan’s reign of terror; something I have noted on here countless times.    But it was papered over by money printing and global looting; a luxury the Soviets didn’t have.  So much for the mythical political propaganda of Reagan’s legacy in defeating communism.  Reagan’s faux legacy still continues today and was (neo)liberalized even further by Clinton, Bush and Obama.   Reagan’s true legacy is the beginning of the end of deregulated capitalism.  Capitalism that had to be deregulated by Reagan because that was the only way to save it.  Yes, capitalism was already collapsing during Reagan’s time in office.  As noted on here many times, America’s peak economic output happened around 1980, give or take a few years.   More on this another time.

Again, the failure of this control system is all good news (long term) for the U.S. economy and democracy.  That is, if the U.S. survives in its current form.   It is clearly plausible that it may not.  Our economy could recover rapidly with the right policies as I have noted countless times on here over the last eight years.  When this system fails, it will suck to be you if you have been looting the U.S. public treasury – global elites benefiting from American-created neoliberalism, Chinese communists, Saudi Arabia, U.S. elites, the military-industrial complex, hyper-consumerism aka the mythical make-work “service” economy,  American political parties, the investor class, Wall Street, industrial food corporations, the corporate healthcare system, multinational corporations, etc.   I hope this will give you a greater appreciation for why so much force is being applied to maintain this system.  Because with out it, the entire Ponzi Scheme of control will collapse.  Not just in the U.S. either.  

This is exactly how the Soviet Union failed.  Exactly.  And its state-propped up corporations - control systems - fell with it.  The Cold War was never about freedom versus communism.  It was the battle of “isms”.  It was a war between corporate capitalism and communism as two state-enforced economic control systems.  Our society is substantially similar to that of the Soviet Union in its structure.  We have state-backed corporate and political bureaucracies that essentially control the people in this nation.  We don’t produce what we want or need.  We produce what the bureaucrats want us to produce.  Sometimes they are corporate bureaucrats and sometimes they are state bureaucrats.  Just like in Mother Russia.  And we produce it in excess.  Just like Mother Russia.  There is no self-rule in this nation. 

What corporate capitalist proponents fail to realize in our corporate capitalist system of control only exists through the force of the state just like state-propped up Soviet corporations.   And that central planners exist in capitalist corporations just as they did in Mother Russia.  In fact, central planning in corporate capitalism is necessary for its success.  Without quota-driven overproduction created by corporate planners, profits disappear and so does capitalism.  This isn’t some new development either.  This is corporate capitalism in its full regalia. 

In a truly free society with true economic freedom, can you imagine people volunteering to work as mindless drones collecting serfdom debts under the dull hum of fluorescent lights in their brown JP Morgan cubicle for the benefit of an authoritarian megalomaniac like Jamie Dimon?  Or chained to a desk, essentially unable to move for twelve hours a day, staring at miniature parts through magnifying goggles to overproduce smartphones so you can have a shiny new toy every six months and do this for a slave wage of $2 a day?   Or overproduce enough prescription drugs to turn our nation into a society of emotionless zombie workers fit for corporate state exploitation?  Or purchase endless amounts of generally useless junk made through a nonliving wage after being fed a healthy dose of marketing propaganda in TV infomercials whose intent is to prey on your insecurities?  And then be forced to the front lines to wage economic war on behalf of our corporate masters and do so for the lowest possible wage?   Does anyone actually think people voluntarily participate in these and other forms of corporate slavery needed to keep this system going?  Seriously?  Ego-motivated delusions and rationalizations.  Is this really different than the dull hum of a meaningless existence as practiced under Soviet control?  The Soviets were all alcoholics.  We are all drug addicts.  Well, and work addicts, alcoholics, gambling addicts, shopping addicts, and on and on – outcomes of emotional dysregulation created in large part by an inhumane corporate capitalist social value system.  The reasons for dysregulation in the Soviet Union and the United States are the same.  Being  forced into a Godless state-enforced system of control that steals their humanity.  Corporate capitalism has only ever survived because the state forced people, like cattle, into this control system just like they forced people into other control systems like communism, socialism and every other “ism”.  

“isms” and other institutions of control, or institutions of the ego, are created by weak people for the benefit of weak people.   They are created so weak people can prey on and exploit others who are vulnerable through methods that wouldn’t exist without isms.  They are also created so weak people can become powerful by making strong people weak.  This is done by forcing people into a conscription system that allows weak people – those who will do anything to their fellow man to gain authority, power, status, class and control - to become powerful.  While truly strong people will recognize how unjust such a system is and will have a harder time rationalizing selling their souls to the proverbial devil (the “ism” created by the ego for purposes of control) in order to gain such ego-motivated authority, power, status, class and control.  Or a strong person will eventually rationalize the abandonment of his virtues to conform to this exploitative system.  A truly strong person, one who recognizes theirs strength comes from their inner divinity and thus recognizes their love for all of humanity, understands that no person should ever be granted authority over another human being.  And that no person should ever be conscripted into economic slavery or any control system based on force.  The weak person almost always rises to the greatest levels of power in any “ism” or any bureaucracy and that dynamic weakens and destabilizes everyone else. 

We need solutions that strengthen all of our citizen’s inherently divine or decent qualities including compassion, community, economic freedom and creativity so that all people have an opportunity to become who they were meant to become.  And as part of that to be emotionally-responsible and where appropriate, physically-responsible for themselves.  Only with responsibility comes the freedom of empowerment.  Not to become who capitalism or any other forced “ism” tells them who they should become.  We need an economic framework that protects vulnerability rather than exploits it.   So that all people have an opportunity to walk the path leading to their own greater divinity and power.  Then all people will be raised to a higher level of quality-driven existence through the expression of our divinity and our humanity.

Never in the history of humanity have we seen such a growing global mindfulness of how insane this corporate capitalist control system truly is.   Even if just and honest people in the system are too afraid to admit it.  Too afraid because they are forced to participate in the system to survive its endless violence. 

The Soviets maintained empire by ensnaring a sphere of influence based on a control system that benefited a ruling class in its satellite or Soviet-bloc states just as neoliberalism has for those states in America’s sphere of influence be that Japan, Russia, China, emerging markets or elsewhere.  Communist China, a wildly corrupt class-based (control based)  “ism” with rampant poverty, has simply created a new class of elites that have benefited by submitting to the American corporate empire while hundreds of million of its citizens live in abject poverty.  

As the Soviet empire started to destabilize, it was unable to purchase its quota of goods and services from its satellite nations, the Soviet-bloc, that kept these nation’s peoples employed (docile or controlled) and their corrupt elites beholden to their Soviet master.  Over a period of years the Soviet Union was increasingly unable to buy its quota of goods from the Soviet-bloc and the working class in these nations started suffering greater and greater consequences.  In other words, the Soviet Union’s empire was based on a dumbed-down, proletariat, quota-driven system of corporate overproduction just as corporate capitalism is.   So, when overproduction was no longer sustainable because of this control system’s many inherent contradictions aka  instabilities,  the system became even more unjust, people more impoverished and the control system started its destabilizing descent.  Soviet and bloc wages were suppressed even further so that more money could be diverted into maintaining empire.  ie, More of the wealth of society could then be forcibly-diverted into guns rather than butter –> greater and greater control needed to maintain a control system from destabilizing.  You know, just like the U.S. today.  Much of this was first experienced at the edges of Soviet empire.  Can you say Solidarnosc?  And then Perestroika?  Both growing signs of a control system’s inability to maintain stability.  We see the same wage and impoverishment dynamic has been unfolding in America for decades.  And just like in the Soviet Union this statist-driven austerity for poor bastards is sold by lawless elitist political criminals as a necessary sacrifice for our own good.   Umm, that is the reason for our massive debts.  Living wages are denied so that the wealth of society can be spent so the bureaucrats and central planners can expand and maintain corporate capitalism.

Our corporate capitalist system too is driven by that same dumbed-down, proletariat, quota-driven overproduction and its necessary propagandized glorification of work to serve our private, for-profit corporate capitalist masters.  Capitalism too is driven on the artificial requirement for never-ending, quota-driven production increases to serve its artificial and unsustainable need for growth.  This contrived system of control is need to serve the primary need of ever-increasing profit of private capital or capitalism.  This control system maintains its power under the exact same dynamic as the Soviet and Soviet-bloc elites.  That is, by enslaving a society to state-enforced, quota-driven conscription or corporate work.  Corporate capitalism, just as the Soviet Union, too is proletariat in that glorifies work above all other human expression because doing so is necessary to maintain its control.   Quite honestly, both the U.S. and the Soviet Union are/were enslaved to a system of make-work.  This enslavement is not only physical but because it is propagandized and glorified by the corporate state, it is also psychological.  ie, It is institutionalized. 

The economic parallel today includes U.S. hyper-consumerism. This is both a function of capitalism and because it is concentrated in the U.S., it is a function of corporate capitalist empire enforced by the dollar.   It would be the same were the yuan or the pound were the reserve currency.  ie, The respective nation would have the same ability to over-consume.   If the world’s reserve currency were a basket of currencies, it would still be the same.  Capitalism would still require more nations to over-consume in order for it to survive.   Over-consumption is an inherent flaw of capitalism given it is a discounting mechanism for future production as noted on here before.  In other words, it is essentially the same Soviet quota-driven overproduction system requiring the purchasing goods from across our empire and sphere of influence to maintain control.  But rather than the Soviet-bloc, for the U.S. it is China, Japan, emerging markets, etc. that are enslaved into the dollar-based global capitalist production system.  And if it wasn’t the U.S., it would have to be someone else.  Regardless, in order to keep overproducing we must keep shopping.  You know, like George Bush told you to do right after 9/11.   By the way, the pseudo-capitalist service sector is also reliant on this shop till you drop paradigm, a point clearly missed by the dumbed-down proponents of a post--productivity or even post-science economy.  Now we are now witnessing the same Soviet-style overproduction collapse today around the world as Americans and others, denied their economic freedoms and living wages necessary to maintain empire and capitalism’s requirement for constant growth, we have increasingly exhausted our savings to keep this global overproduction Ponzi Scheme afloat. 

When other nations in our sphere of influence can no longer rely on the U.S. to buy their endless supply of excess production and outright overproduction, the control system loses its fundamental influence or power and worse.  Just as the Soviet system lost its influence over bloc nations for the exact same reasons.  This is easily measurable today by the systemic crisis in global unemployment, underemployment and poverty in the capitalist system.  This unemployment, underemployment and poverty is massive and unprecedented in scale.  It is a far larger problem than the substantially smaller Soviet empire or communism’s forced, quota-driven production.  This control system cannot and will not be restarted.  Period.  There is no recovery and never will be as I have uniquely written of incessantly over the years.  Nor are we going to export our way to prosperity (more overproduction) as Obama wrote in the Wall Street Journal op-ed during his first term.  Something I mocked as nonsensical blatherings of a bureaucrat at the time of its printing.  Now some are starting to recognize something systemic is wrong and it is a global issue.   This is what is wrong.  Capitalism is dying.  The horror of globalization, as it has been created by our corporate capitalist masters and their beholden political idiots, is dying. 

Not surprisingly, many pundits are incorrectly focused only on the U.S. because it drives their confirmation bias.  This narrow fixation or false perception of reality and its associated confirmation bias prevents their minds from seeing the true reality as it exists.   This is a very key point and the most important to remember in this post –>> The U.S. is not failing.  The control system of corporate capitalism is failing across the entire globe just as communism did.  And that means America’s corporate capitalist empire, the corporate state and modern capitalist society are failing along with it.   You read it here first.  I have been writing exactly this for years.

Don’t let anyone tell you the issue in this nation or anywhere else is debt.  Debt is an illusion created by corporate capitalism to enslave people to a system of overproduction.  The issue of our day is that corporate capitalism itself is dying and the U.S. corporate capitalist empire and the financial slavery used to create it must also therefore die.  That is why we see excessive use of force around the world today.  The corporate capitalists are trying to save the system and it must exert greater and greater control as this complex control system continues to destabilize.  Just as happened in the Soviet Union and Soviet-bloc states.  Once again, this is corporate capitalism as it has always been practiced.  It is only created and maintained by patriarchal state force and it is violent, repressive, exploitative and predatory.   Those who wax poetic of the good ole days of capitalism are deluding themselves rather than opening their minds to discovery and truth.

So if you didn’t know, now you know why Japan has been experiencing deflation for 25 years yet hasn’t had a debt collapse. And why the rest of the world has joined Japan just as I wrote it would back before the 2008 collapse.  Debt deflation is a myth perpetuated by a flawed post-facto analysis of the Great Depression by Irving Fisher.  One that has been adopted by people who outsource their thinking.  Debt is a dependent variable in the deflation equation as I have noted.   And if you didn’t understand before, you also now know why the Federal Reserve cannot fix our economy by printing more money.   Do we need to build more roads and bridges and could we with printed money?  Sure we could.  But Japan has been building & tearing down and building & tearing down bridges, roads and buildings for 25 years.  They have turned it into a system of permanent make-work.  Yet they haven’t solved any of their economic issues.  And they never will under this global control system. 

Do you know how to solve these dilemmas permanently and democratically?  I have hinted and remarked of numerous structural changes over the years.   No, it isn’t another “ism” or a dumbed-down state glorifying proletariat work.   Gold-backed money?  lol.  That would crash this system quicker than anything else I could imagine.  The answer doesn’t even involve money.  The answer certainly isn’t more jobs either.  That’s simply more nonsense trying to keep us enslaved to a dumbed-down control system of state-enforced corporate work.   To give you one indication of how proletariat we have become as a corporate capitalist society, what invariably is one of the first things someone asks when they meet you?  What do you do for work?  More than anything else, corporate capitalist society defines us by our label of work.   How rote and meaningless that we create a primary label for people in society based on what they do for work as opposed to uncovering the many layers of their inner beauty?  When your identity is primarily perceived through work, who cares about anyone’s inner beauty?  There is little social demand to even develop it.  How often have you experienced that reality?  Corporations and the corporate state don’t care about your inner beauty.  Or your uniqueness.  Or your emotional development.  They care about your mindless conformity to a system of conscripted work.  And boy do good corporate capitalists love to work.  Just like Mother Russia.

I can tell you how capitalism has historically solved the issue of overproduction.  Well once you understand this is a control system of violence and exploitation, it becomes obvious.  War.  Sometimes economic.  Sometimes military.  What better way to remove the world’s overproduction than to blow up your competition and then start all over again?  Of course, sometimes we don’t even need to wait for overproduction.  Just blowing up the competition for profits or to achieve greater profits or new markets can’t seemingly wait.  Then there are the endless trade wars of capitalism.  Do you know how many wars, both overt and covert, trade and military, the world has fought in the last 500-odd years because of capitalism?  (Capitalism was practiced well before Adam Smith wrote The Wealth of Nations.  He simply wrote the magnum opus for corporate state-based corporate looting.)  

Are wars actually planned by capitalism?  You know, like Soviet planners?  Hmm.  Some certainly are.  Trade wars are created with intent.  They are planned.  This global capitalist system is a planned trade war.   Our political and corporate masters conspired in secrecy to create it.  Now capitalism may not plan all military wars but as Smedley Butler noted and we see today, they certainly conspire to create some wars.  And, as noted on here before, World War I was created with intent by capitalism.   War is simply another outcome to the state-enforced violence of capitalism.  Competition for greater and greater profits and greater and greater resources needed for those profits and the greater and greater markets needed for corporate overproduction simply leads to the inevitable.  As Randolph Bourne opined, war is the health of the state.  That certainly applies to state-enforced capitalism’s economic warfare.  Warfare that is always fought by the minions as both corporate slaves and in its military campaigns.  Umm, that would be us.  Bourne’s remarks more pointedly are simply that the state exists through violence and thus must maintain this violence for its own health or existence.  Capitalism, war, empire…  just different manifestations of state violence. 

Do we need to make things society needs or even wants?  Of course.  Do we want to do this under the control over Soviet-style government bureaucrats?  Hardly.  I don’t want to drive a Trabant or buy a Soviet-built house.  But we don’t need this violent overproduction and the artificial need (control) for endless corporate capitalist profits that unnecessarily rapes the natural world, preys upon the mass of people to maintain its control, subverts democracy for the benefit of the few, forces societies around the world into unnecessary, destructive emotional competition, economic slavery, conflict and violence, and socializes all of its losses while privatizing the gains for a very few.  Not through the predatory, private, for-profit corporate capital mechanisms that define capitalism as it has always been practiced.   We have turned the world into a garbage dump and an internment camp for most people.   There certainly is a substantially more quality-driven existence than this. 

Maybe now many can start to appreciate why I have remarked that money is nothing more than an institution of control and that some day we will see the concept of money disappear.  Forever.   There is endless money around the world for state-enforced overproduction required by capitalism but seemingly no money for billions of people around the world to acquire that overproduction of food, to cite just one example.   Ditto with healthcare.  Ditto with homes.  In many regards, the process of money’s death has already begun.   What are food stamps?  One could consider them to be a form of specialized money.  Or, they could be considered the start of a trend in a movement away from money.   Why can’t everyone have a food voucher in this nation to receive their natural right to our nation’s food supply?  Obviously with natural right stipulations of personal responsibility to community or a nation or whatever.   This is simply one instance where money is showing appearances of dying.  There are many.   Is the trend of it temporary or a permanent trend?  A world without money would be a far more quality-driven existence for humanity and true freedom.  And by quality, I mean something along the lines of Robert Pirsig’s metaphysical view of quality.  Not a new Ferrari or second mansion driven by the self’s fatally-flawed subject-object perceptions and its insatiable desire for amusement.   Another post for some day in the future.

"My friends, each of you is a single cell in the great body of the State. And today, that great body has purged itself of parasites. We have triumphed over the unprincipled dissemination of facts. The thugs and wreckers have been cast out. And the poisonous weeds of disinformation have been consigned to the dustbin of history. Let each and every cell rejoice! For today we celebrate the first, glorious anniversary of the Information Purification Directive! We have created, for the first time in all history, a garden of pure ideology, where each worker may bloom secure from the pests of contradictory and confusing truths. Our Unification of Thought is a more powerful weapon than any fleet or army on Earth! We are one people. With one will. One resolve. One cause. Our enemies shall talk themselves to death.  And we will bury them with their own confusion! We shall prevail!"

Institutions of the ego or of control always fail.  Corporations, communism, the state, capitalism, rules, institutionalized science, rationality, university-conscripted corporate education and laws not based on natural rights……..   On and on and on.  It’s just a matter of when.  Some may question if this is just another hiccup for the systemic violence and inherent contradictions or instabilities of capitalism.   Don’t bet on it.   How do you plan to create jobs for the 50 million Americans on food stamps?  Or reverse the fortunes of 150 million Americans who have just enough to barely make it?   Now, take this dynamic global and it is in the billions.  Remember, one of my long term theses is that we are in a cycle of volatility – one of the most accurate outcomes written about on here over the last eight years.   There are esoteric factors not appreciated by mainstream or institutionalized perceptions of reality that are driving this crisis.   These factors are are now.  In this cycle.  And if you open your eyes, you see it everywhere.  

Just as when the Soviet’s control system unwound it created collapse all throughout its empire of Eastern Europe and elsewhere, so too will the entire corporate capitalist control system around the world likely experience the same fate.  Does that mean a post-apocalyptic world of Mad Max?  Well, if the capitalists have it their way, then yes war and violence is possible.   Remember, the Soviet Union and Soviet-bloc really fell with little more than a peep.  A system of inherent instabilities and contradictions that is perpetuated by statist ego and ego-force only exists through illusion.  One day people woke up and the illusion had disappeared.  Freedom is first a state of mind.  Releasing our ego’s attachment to illusions that create and perpetuate our own suffering.

posted by TimingLogic at 9:59 AM links to this post