…and the whole fucking global economy collapses.

anyway, I thought it might be usefull to chat about the economic situation, while there still is one.

I found this documentary interesting. I’ve been following Lyndon Larouche for a couple years now, and he’s actually a well respected economist in other parts of the world. ( Russia, China, India, South America). Whereas here he’s a crank at best, and a dangerous criminal cult leader at worst. I’ve always found him to be quite lucid. The excesses of his personality cult I can take or leave. Kind of like the Wilbernator these days. The analysis is spot on, as far as I can tell. A return to a new-deal style fixed exchange rate system has got to be better than sucking the whole world into a hyper-stagflationary singularity. Or raping the taxpayer planetwide to bail out bankers who will then turn around and foreclose on you.

The moral of the story is that people who actually understand living history ( rather than a string of events racing to make space for us, right now) are too dangerous to permit in public discourse.

14 thoughts on “You try and take a vacation…

  1. I read in Carroll Quigley’s Tragedy And Hope about what drives economy, and he made a point that as long as what drives the economy is profit and not prosperity, then the whole society will not benefit, but rather the incumbent power. In other words, the driving force behind all this economic rollercoasting is for personal benefit for a select few, and laws are changed or ignored in order to benefit them in terms of profit rather than prosperity.

    If the motive of a society is prosperity, then profit has its place; it is a great motivator – which also makes it problematic since we have greed. Today, the political leadership is so obviously permeated with private interests that are not interested in real prosperity, as described in the end of this documentary.

    In some sense, if a company – or perhaps the government more so – isn’t contributing to prosperity then they must have some other agenda. That, is part of the problem too.

    R Waldner

  2. I also don’t like Larouche’s “Bring Back Detroit” plan, and, for that matter, his suggestion that the government put all banks and mortgages into bankruptcy–well, gee, that’s just what they did. I mean I understand his suggestion to support a real economy–after all, the banking industry was and is the most-bailed-out industry of all time and during the past twenty years every crisis in any other industry got a “deal with it” from gov’t–but still.

    Although “the most gullible generation the United States has ever produced” is pure gold.

  3. well i think the difference between what larouche is proposing and what is being talked about in congress, is that larouche wants it all frozen and separated out into community banking and speculative functions so that the great mass of speculative dead weight can be written off and forgotten.

    right now, they’re trying to save the money, or at least, as much of it as possible, whereas they should be trying to protect the people.

    it’s the triumph of monetarism. they can’t even conceive that the interests of the people and that of the currency speculators might be different.

  4. It’s the end result of any parasitical relationship. the parasite has to eventually force the host to place it’s needs over the host’s own. they essentially want to wipe the idea that credit is controlled by government, not the other way around.

    if they get people to commit to this bailout scheme, instead of just saying fuck you to these gambling debts, they’ve pretty much won the game. if you can convince someone to cut his own throat on the basis of a false premise, they’ll do anything else you ask.

  5. Who here noticed that Bernanke deliberately drained the credit markets of $125+ billion in liquidity last week, triggering the raid on Washington Mutual? A lot of folks in the blogosphere are (rightly) identifying this as an attempt to blackmail Congress into taking immediate, panicked action. The Fed is implicitly threatening to crash vulnerable banks and plunge the country into an even deeper crisis if Congress doesn’t deliver the bailout with minimal strings.

  6. Oh absolutely. it’s financial terrorism. all the bullshit about paulson handing his demands to be crowned the financial mussolini of the USA to congress is just a scandal. I would have had the guy shot on the white house lawn for treason just for that.

    the whole thing is absolutely a shakedown, but that doesn’t mean the potential ramifications aren’t real. from the perspective of the finance oligarchs it is the end of the world, whether they get the money or not. we’re talking derivatives in the amount of several times the value of the earth that are basically dragging the whole planet down, but these guys want to be paid off rather then just burn the shit in a trash can somewhere.

  7. yeah, if you’ve been watching the Fed adds and drains for the past nine months or so, you can see that they’ve been not nearly as “inflationary” as the goldbugs and doomers would suggest. rather, it looks like this is either a “MIHOP” event or incompetence. They’ll turn on the life support to string things along, but they’re being clear about keeping a deathgrip on things. They didn’t so much take away the punch bowl as they did flush the junk down the toilet, leaving a bunch of addicts unable to get a fix… it is a shakedown for sure, a feeding frenzy either intentional or not, and oddly, hmm, interesting that JPMorgan Chase has somehow managed to profit at each turn, finding firesale prices…

    I wouldn’t say it’s the end of the world for the finance oligarchs–it’s just the end of the world for most of them. End of Act I. Begin Act II. Sneak backstage and change some of the costumes before they turn the lights down again, is what you gotta do… financial times is calling for a “global monetary authority” to “monitor” markets…

  8. This is the second place on the web that I frequent where I’ve seen intimations of a “global central bank” as a “solution” to this fiasco. Consider how perverse that is: The solution to the failure of centralized banking is…to further centralize banking. I think Ran Prieur is spot on when he identifies this bullshit as a kind of abuse ritual that traps those who seem most responsible for it. The people at the top are so deeply invested in the ritual, so enamored with “power-over”, that they can’t help but ride the bomb all the way down.

  9. well, I think it’s bigger than centralization. it’s a combination of that, privatization ( which opens the door for the first) and deregulation ( which follows the first two as soon as you inject the profit motive and the impetus to manipulate politics).

    suggesting that the ‘natural order’ is to place everyone and everything at the mercy of “the market” which is a codeword for a coterie of finance oligarchs is pretty perverse.

  10. Agreed, though the use of the term “market” by cynical elites should not be taken at face value. A market is nothing more than a place for the reciprocal exchange of goods and services, and as such, is a byproduct of human moral psychology (which is founded on the principle of reciprocity). In this sense, there have been markets for as long as there have been human beings interested in trade. The word “market” today, though, has become a cypher for corporatism, which is a product of state-sponsored cartelization. It is important that “(free) market” be recognized as a rhetorical frame invented by self-serving politicians and ideologues, and not as indisputable reality, because detractors of the corporatist economy will (incorrectly) point to “deregulation” and “privatization” as causes for the current crisis and on that basis go to the opposite extreme, producing a socialist economy that is just as distorted and dysfunctional as the one we now have.

  11. … i tend to think that deregulation isn’t necessarily bad–there have been plenty of industries that were overly-regulated that grew significantly after some deregulation and without ill effect. But then you have Enron in California, blacking-out the entire state. and likewise there’s an attempt to force the discussion into the terms of economics rather than questions of what our society wants making use of economic considerations: “If you can get them to ask the wrong questions, you don’t have to worry about the answers.” I think it’s called reification.

    but whatever, i’m amazed that bill sunk. that buys us another week, or at least until “Maitreya” teleports into the oval office holding hands with a couple greys and with the corpse of Osama bin Laden slung over his shoulder.

  12. i think it was inevitable. they’ve indoctrinated the populace into the soundbites of ‘free markets’ and ‘no government intervention’ so as to push through a predatory agenda, but they never imagined a situation where a misinformed populace would turn on them.

    now the gears are jammed and the whole thing is going off the cliff. I severely doubt if the republican party is going to survive this, at the very least.

  13. it’s a dead cat bounce. happens every time. wait until after 3PM and they’ll be launching fireworks. “When calling a bottom, buy on a pullback and sell on the rally”–the pigs who run the show won’t let the thing turn down for real until the very last suckers have bought in. It’ll drop again, and more, maybe not as dramatically but certainly lower, just wait. If anything the full-out panic mode they’re in right now, though, shows just how much those gears have frozen–they can’t even convince American TV-watchers that “Main Street needs the bailout” even though they’re touting that line twenty-four hours a day, eight days a week. “Weeee neeeeeds it! NEEEDSSS IT!”

    Of course the shills on CNBC are talking it up, they’re paid to keep their imaginations on short leaves. My question is how they look themselves in the mirror when they wake up in the morning. I imagine in short order it will be a non-issue.

    …it’s tremendously liberating to see consensus dissolve

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