Sunday 23 August 2015
Friday 17 July 2015
Champaign Socialism
You WILL atone.
In the seemingly endless political shift to the left by the world's electorate at large, it finally seems that there is a significant push-back by a "new aristocracy" of 1%'ers. The best part is, the political left have set themselves up for their own "re-enserfment"*! How? By decades of piling on sovereign debt by piling on endless social programs (read: unproductive borrowing) with no thought to how the borrowed money would be re payed. Let the champagne of social assistance flow!
Aye...but there is the rub.
How do you pay back ALL the debt when ALL your money in the entire economy IS an instrument of debt? AND, since ALL the money is ALL of the debt, where does the money to pay the INTEREST come from if that money doesn't exist yet? Answer: You borrow it, of course...and here inlays the downward spiral of debt, every year you have just a little bit more to pay back than the year before. This part the political left could NEVER figure out...where DOES money come from? ...they're finding out now.
What does one have to do with the other?? Look at the example of Greece. The leftist Syriza Party has just been forced to capitulate financially to the wishes of "The Troika", a.k.a., The European Central Bank, The International Monetary Fund and The European Commission and their political actors working in concert with global banking interests namely Goldman Sachs and Deutsche Bank to name but two. Greece, through Prime Minister Tsipras, defying the results of a democratic referendum he, himself, insisted on has relinquished total control over Greece's sovereign finances to the Troika. PM Tsipras, has committed Greece to endless debt serfdom in order to save not Greece but the banks that have lent to Greece under the pretext of fiscal responsibility.
Why Tsipras would defy his own people's wishes to save banks that intend on "slam-dunking" the Greek economy for their own benefit is beyond the grasp of most logical people. Even worse, Greece had a way out! Tsipras could have listened to his electorate, followed their wishes as elected individuals are empowered to do and refused to repay an un repayable debt. If so, Greece would have been unceremoniously thrown out of the European Union, stripped of the Euro dollar and publicly shamed for their fiscal atrocity. The Greeks could have survived that. Tsipras could have gone the way of Iceland and cleaned the slate for Greece. He could have reintroduced the Drachma and restarted Greece debt free under a fiscal regime right for Greece. He could have been national hero. But, no.
Nevertheless, the Greek people are about to lose everything. Their bank deposits will likely be pilfered to a degree (such was recently the case in Cyprus) to keep Greek banks solvent and the Troika will slowly erode government pension plans of all stripes to "streamline" payments which the Greek economy can no longer afford to support. Eventually, the ever increasing debt load will soak up all pension payment monies as well as other social program funds. Also, national infrastructure that earns revenue for the Greek government has been pledged to support a 3rd financial bailout of Greece, a bailout for which the terms cannot be met by any logical standard! The Troika AND Tsipras both know this!
The Greek debt problem is "structural" and can only be sorted out by a major restructuring...this has NOT happened. Greece is set up for failure again and will default, relinquishing key infrastructure in the process. In the end, Greece will exist solely to pay the Troika, it's population harnessed by the yoke of debt slavery. The Troika is looking out for their own interests and the interests of their friends in global banking. Full stop.
Moreover, this is only the beginning. Global banking interests will make an example of Greece to deter other countries from even thinking about default as a way out. You see...the miracle of Keynesian economics has finally played out to its inescapable conclusion...insolvency! Larger countries can still afford to uncork yet another bottle of Champagne Socialism to "extend and pretend" the economy and keep it flowing as it continues to meet its obligations with borrowed money. In smaller countries the champagne is running out as it has just run out in Greece. One by one, financially vulnerable countries will slowly be robbed of their assets and their sovereignty by this new aristocracy.
But, what do we do about this problem? As a Libertarian, I advocate for "sound money" in opposition to money, created out of the Keynesian abyss of nothingness, as an instrument of debt. Our money should have value, goddammit! Real wages have been eroded while costs have risen on a tide of increasing commodities prices vis-a-vie monetary inflation due to decades money printing. People have stopped asking fundamental economic questions like, "Why can't I afford to buy a home even though I have university degree and full time career level employment?"
The world can no longer afford Champagne Socialism. The 1st world is finally primed to be ironed out by the steamroller that is the Keynesian economics of debt. I think George Orwell said it best when he said, "Don't let it happen."
(*quote: Paul Craig Roberts)
In the seemingly endless political shift to the left by the world's electorate at large, it finally seems that there is a significant push-back by a "new aristocracy" of 1%'ers. The best part is, the political left have set themselves up for their own "re-enserfment"*! How? By decades of piling on sovereign debt by piling on endless social programs (read: unproductive borrowing) with no thought to how the borrowed money would be re payed. Let the champagne of social assistance flow!
Aye...but there is the rub.
How do you pay back ALL the debt when ALL your money in the entire economy IS an instrument of debt? AND, since ALL the money is ALL of the debt, where does the money to pay the INTEREST come from if that money doesn't exist yet? Answer: You borrow it, of course...and here inlays the downward spiral of debt, every year you have just a little bit more to pay back than the year before. This part the political left could NEVER figure out...where DOES money come from? ...they're finding out now.
What does one have to do with the other?? Look at the example of Greece. The leftist Syriza Party has just been forced to capitulate financially to the wishes of "The Troika", a.k.a., The European Central Bank, The International Monetary Fund and The European Commission and their political actors working in concert with global banking interests namely Goldman Sachs and Deutsche Bank to name but two. Greece, through Prime Minister Tsipras, defying the results of a democratic referendum he, himself, insisted on has relinquished total control over Greece's sovereign finances to the Troika. PM Tsipras, has committed Greece to endless debt serfdom in order to save not Greece but the banks that have lent to Greece under the pretext of fiscal responsibility.
Why Tsipras would defy his own people's wishes to save banks that intend on "slam-dunking" the Greek economy for their own benefit is beyond the grasp of most logical people. Even worse, Greece had a way out! Tsipras could have listened to his electorate, followed their wishes as elected individuals are empowered to do and refused to repay an un repayable debt. If so, Greece would have been unceremoniously thrown out of the European Union, stripped of the Euro dollar and publicly shamed for their fiscal atrocity. The Greeks could have survived that. Tsipras could have gone the way of Iceland and cleaned the slate for Greece. He could have reintroduced the Drachma and restarted Greece debt free under a fiscal regime right for Greece. He could have been national hero. But, no.
Nevertheless, the Greek people are about to lose everything. Their bank deposits will likely be pilfered to a degree (such was recently the case in Cyprus) to keep Greek banks solvent and the Troika will slowly erode government pension plans of all stripes to "streamline" payments which the Greek economy can no longer afford to support. Eventually, the ever increasing debt load will soak up all pension payment monies as well as other social program funds. Also, national infrastructure that earns revenue for the Greek government has been pledged to support a 3rd financial bailout of Greece, a bailout for which the terms cannot be met by any logical standard! The Troika AND Tsipras both know this!
The Greek debt problem is "structural" and can only be sorted out by a major restructuring...this has NOT happened. Greece is set up for failure again and will default, relinquishing key infrastructure in the process. In the end, Greece will exist solely to pay the Troika, it's population harnessed by the yoke of debt slavery. The Troika is looking out for their own interests and the interests of their friends in global banking. Full stop.
Moreover, this is only the beginning. Global banking interests will make an example of Greece to deter other countries from even thinking about default as a way out. You see...the miracle of Keynesian economics has finally played out to its inescapable conclusion...insolvency! Larger countries can still afford to uncork yet another bottle of Champagne Socialism to "extend and pretend" the economy and keep it flowing as it continues to meet its obligations with borrowed money. In smaller countries the champagne is running out as it has just run out in Greece. One by one, financially vulnerable countries will slowly be robbed of their assets and their sovereignty by this new aristocracy.
But, what do we do about this problem? As a Libertarian, I advocate for "sound money" in opposition to money, created out of the Keynesian abyss of nothingness, as an instrument of debt. Our money should have value, goddammit! Real wages have been eroded while costs have risen on a tide of increasing commodities prices vis-a-vie monetary inflation due to decades money printing. People have stopped asking fundamental economic questions like, "Why can't I afford to buy a home even though I have university degree and full time career level employment?"
The world can no longer afford Champagne Socialism. The 1st world is finally primed to be ironed out by the steamroller that is the Keynesian economics of debt. I think George Orwell said it best when he said, "Don't let it happen."
(*quote: Paul Craig Roberts)
Wednesday 24 June 2015
Being Libertarian.
We’re in a lot of trouble.
Years ago, I classified myself as a Classical Liberal. I
found this confusing terminology because I am a fiscal conservative and fiscal
conservatism is not a very Liberal concept. Moreover, Classical Liberalism is
often used in descriptions of the Founding Fathers of the United States of
America. I’m not an American either. Fortunately for me, times have changed and
the term “Libertarianism” is now popular! Now we don’t have to hide in the
shadows as stodgy old Classical Liberals, we can step into the light and BE
Libertarian!
Libertarianism used to be so simple. It was an ideology that
supported individual autonomy, property rights, civil rights and rejected State
intervention in…well…everything! But, above all, it supported and adhered to
the NAP (Non Aggression Principle). These are basic tenets of Libertarianism
and all of the aforementioned is outside the right/left political paradigm.
This is the beauty of the rise of Libertarianism. If you
were sick of mainstream, traditional right/left politics and coveted personal
freedom you now had an identity. You were a Libertarian! You could now wax poetic
about platitudes of freedom and all things that should be free! “Get the
hobnail boot of the State off of the people’s throats!” …and all that sort of
nonsense.
However, that was back when nobody knew about or
particularly gave a dick for Libertarianism. Nevertheless, as the Libertarian
train began to pick up speed, more and more people have begun attempts to derail
the journey to a Stateless and tax-free destination. Everything from trolls
telling us to move to Somalia (Libertarianism to the extreme is considered
Anarchism and Somalia has no real government at present) to Socialists accusing
us of being “anti-people” for wanting to eliminate their precious social
programs (Libertarians want to make Social Programs privately funded rather
than State/taxpayer funded).
Even worse than that is the most recent trend of mainstream
political “Statists” tacking on the word Libertarian to their particular
right/left political outlook. I’m most recently irked by the current Greek
Minister of Finance, Yanis Varoufakis, describing himself as a
Libertarian-Marxist. …what?? Marxism says Socialism, Socialism is the politics
of forcing everyone into the same “box”, operative word being “force”.
Political force is aggression against people. Aggression is against the NAP! If
you politically contravene the NAP you are by definition NOT a Libertarian! I
have no doubt that Mr. Varoufakis is a Marxist, he is aligned with Greece’s
current Socialist (Syriza Party) government.
Does this make Mr. Varoufakis a “bad guy”? No, of course
not, I watch his actions very closely these days in the news and on Youtube. He’s
a fantastic orator, a financial genius and looks like a certified “bad-ass” in
his black leather jacket when meeting the UK PM at Number 10 Downing Street!
With Greece hanging off the edge of the proverbial financial cliff the Greek
Finance Minister has been submitting proposal after proposal to restructure
Greece’s enormous debt problem. How do we know his proposals are in favor of
the Greek people? German Minister of Finance, Wolfgang Schauble, found him
intolerable and demanded he be replaced at the debt negotiation table! You can’t
ask for a bigger compliment from the European Union! Yanis Varoufakis is my
kinda guy!!
But I digress…there is no such thing as a “Libertarian
Marxist”. Nor is there such thing as a “Libertarian Socialist” as I most
recently heard some confused Socialist refer to himself on the Internet
recently. Both of these are a contradiction in terms!! ...But that’s Statism,
isn’t it? Giving with one hand while taking (more) with the other?
So now, it's not so simple and we’re in a lot of trouble. The term “Libertarian” is
being sucked into the right/left political paradigm and we can’t allow that to
happen! Libertarianism is squarely OUTSIDE the traditional right/left political
paradigm. I implore Libertarians everywhere to call 100% unmitigated bullshit
when some wannabe Libertarian tries to hyphenate Libertarianism! Tell them to
get back into their Statist hole of political misery and don’t come out until
they are really ready to acknowledge the basic tenets of Libertarianism. Tell
them. ...Because if we don’t, we're the ones responsible for the Libertarian movement
becoming polluted with the political garbage of State aggression. They want to
tell you what to do. They think they know better than you.
BE Libertarian. It’s up to you.
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