May 27, 2012
As Syria continues to slide into chaos with the slaughter of 90 people by Government forces that are as such, denied. Of course they are. The Government’s attempt to blame the rebels is expected but is it logical? The repression that results in a massive popular rebellion is in itself an unacceptable form of Government because it is never in the interest of the people. To live in fear is the crime committed by unreasonable Government. If the useless build up of nuclear arsenal The Cold War begat had been invested in the quality of human life then the byproduct could have been bettered education and progress for all of humanity, accumulating wealth in an environment that invested wisely in free energy for all and good clean public transport. But no, investing in defeating the political arrogance of each side required the creation of such threat to stop supposed military desires each side suspected of the other.
Clearly, the Western incursions into hotbeds of Al Qaeda have been horribly costly to the world’s balance sheet as its largest economy borrows trillions of dollars to finance it. And we get a recession as a result of ridiculous laws that fail to protect the taxpayer from massively magnified risk due to market manipulations that make financial giants accumulate risk positions that can go sour and then continue to worsen creating exponential losses – ones that could result in a simple bankruptcy and protect the tax payer. If a trader were to lose their ticket over untenable positions (where losses can not be covered) – effectively mini bankruptcies, the damage would be localised. Government would fulfil its role of sustaining by directing the flow of benefit back to the people that elected them.
Economics is a kind of war. It enslaves countries by locking them into debts that they could not sustain. But like any game, it is one where national advantage means disadvantage to others. International competition comes into it as populations are migrant.
The role of government is to create conditions where economic growth does occur and the tax take increases as the skill level of the population increases.
Instead Governments become score keepers rather than talented actors that provide a level playing field where fairness between people is rewarded and criminality reduces.
We will never get there by arguing. That is what politicians seem to do. It is a lack of creative dynamism that characterises period of recession.
The problem is that the government has allowed a blur to exist between public capital and private risk. Although the bankers committed this error, it is the role of Government to prevent them.
Developments – Russian vote sought as British Foreign Secretary goes to Moscow. Will he have any effect telling the Russians to support a UN embargo on weapons supply (the Russians are the supplier and support the Assad regime) and sanctions?
May 18, 2012
Obama is talking up the European economy saying that growth is required to conquer recession rather than austerity. And David Cameron comes out in favour of this – growth is needed in Europe and yet his policies of austerity in the UK contradict this support and makes one wonder if his office have a rating system and agreeing with Obama trumps most other issues, including the main economic plank of his frat pal chancellor.
What is growth? It is an improvement in terms of real wages vs inflation which in the UK has been on the decline for rather a while. Austerity in the face of recession is a knives edge course of shaving bits of the economy off until its a lean machine like some kind of down sized corporation. But the lives abandoned by the governmental machine are humans not dollars. They do in fact matter. Bleeding your population to support the mistakes of the banking industry and their magic numbers is simply belief in a myth. Mathematics be damned!
May 14, 2012
How the head of JP Morgan got bit by the derivatives market and what this says about financial regulation when it comes to taking risks with our pension funds.
May 13, 2012
Authority dictates that which we socially agree must be accepted as a condition of freedom. We elect those who make the laws that authority is dictated to, if we elect a government that changes those laws then a different set of people may be marginalised. The current financial crisis is an inexcusable threat to progress and it is entirely due to a systemic corruption of the mechanisms of the system itself.
The indecisive democracy practised in Europe makes change occur in a different way than it does in the more rapidly decisive preference voting systems that expand the power to “vote against” a candidate by those who are not completely sure but certain they did not want one of the leading candidates. I can not advocate FPP however, but that is also produces a decisive result swiftly, it is a method of voting that is then able to change government and importantly give Government a continuity and direction. I say importantly – meaning that the lack of an ability to run things without new rules being made – is an important distinction between Government having authority and the state having authority. The rules are only being made by a Government when one is rightfully recognised as representing the will of the people. And look at their choices. People want a government that is not tied to the whim of the fanciful investor. They want a stable entity that will look after their pensions and provide purpose and ability to the young people who may otherwise be overlooked in a market driven economy if forced by it into menial tasks.
The British Conservative Liberal coalition attacked education and health as their way to save the UK from financial collapse and another financial institute is reduced by 13 billion dollars overnight due to action on the derivatives market (2 billion in actual loses) followed by share market reaction (far more lost in capital value, but that’s life).
Meantime Greece is having to democratically consider if being a slave economy in the Euro is preferable to breaking away from it and becoming measured purely on its own merits (maybe that would be a tougher but a more rewarding environment) as Governments in Europe continue to bail out banks that have run foul of the improbable mathematics of the derivatives market.
It allows speculative destruction of common wealth. The hoarding of it by individuals and hedge funds which strip the banks bare at any available opportunity. Why are we democratically deciding to fund these vipers?
May 12, 2012
A limited exchange of nuclear weapons could kill a billion people in ensuing famines as the climate destabilises is the latest horror story about the greatest human mistake. Investing in racist murder. Genocide is the crime committed by any Government using nuclear weapons, and if so isolated would make themselves a target of every major nuclear power, but if retaliated against, would risk collapsing a house of cards sufficient to cause genocidal murder.
Therefore, any state that uses nuclear weapons is committing an international crime and makes itself a target. In the final analysis, the nuclear deterrent is a waste of money, a waste of energy, a waste of human effort.
May 2, 2012
The actions of the Murdoch empire have inflicted criminal damage upon British life. In addition to phone tapping and hacking, they have led public opinion of the lowest common denominator via their tabloids The Sun and the now defunct News of the World.
What in fact are they responsible for? How many lives have been ruined by irresponsible journalism?