Capitalism Has Died, State Corporatism Is Rising
Sunday, 20. April 2008, 22:55:09
I. The Socialist Position On The Current Financial Crisis: A global socialist revolution is needed.
Nick Beams writing in Shades of 1929: the global implications of the US banking collapse, that the current episode has a basic dynamic in common with all past crises. As market participants have moved to reduce exposure to further losses, to step on the brake, the brake became the accelerator, amplifying the shock. Measured risk has increased more quickly than many institutions have been able to reduce it, and attempts to reduce it have added to volatility and downward pressure in prices, further increasing measured exposure to risk. Uncertainty about the market value of securities and about counterparty risk has increased, and many hedges have not performed as intended. The rational actions taken by even the strongest financial institutions to reduce exposure to further losses have caused significant collateral damage to market functioning. This, in turn, has intensified the liquidity problems for a wide range of bank and nonbank financial institutions.
In other words what is rational for the individual financial institution can produce disastrous consequences.
That is, the market rationality for the individual bank or financial institution produces social irrationality and madness. This madness cannot be cured by regulation, but only through the abolition of the financial markets and their replacement with a system of social control over the wealth and assets created by the labour of society as a whole.
The perspective of socialist revolution is grounded on objective processes in the historical development of capitalism. The current global financial crisis constitutes the opening of a new chapter in that history.
To understand its significance let us place it in context. In 1919, in the wake of the Russian Revolution, Leon Trotsky commented on the fact that the press of the day was preoccupied with the names of Lenin, the leader of the revolution, and Woodrow Wilson, the president of the United States, who had journeyed to Europe to try to prevent its spread to the rest of Europe. “Lenin and Wilson—these are the two apocalyptic principles of modern history,” he remarked.
Which would conquer? We now know the answer to that question. With the greatest difficulty, and only with the assistance rendered to it by the social democratic and Stalinist leaderships, through their betrayals of the working class, was the United States, after three decades of bloody war, depression, fascism and the death of tens of millions, able to restabilise the world capitalist system.
Economically, the new equilibrium rested on the strength of American capitalism. Now we have a crisis—the most serious since the 1930s—which has struck at its very heart.
This crisis signifies the passing of an entire historical era. For decades, the United States functioned as the stabiliser of world capitalism. Now it is the great destabiliser.
For the past 35 years, the world economy has functioned on the basis of the US dollar as the chief global reserve currency. This has conferred enormous advantages on the United States. But the decline of the dollar means that the US will face new challenges to its supremacy.
This is not a matter of anyone’s bad intentions, (this is very debatable, Richard), but arises from the logic of economic processes. How long can the rest of the capitalist world—the old powers in Europe and Japan, together with the new rising powers, China and India, as well as the oil exporting countries of the Middle East—go on funding the US to the tune of $2 billion a day, placing vast reserves in US debt instruments that are steadily losing their value?
Of course all the capitalist powers have an interest in preserving global stability—no one wants to provoke a crisis. But at a certain point, the costs of maintaining the present system become prohibitive.
How will the US respond to such a situation? We have already seen the answer to that question in Iraq. It will seek to maintain its position by military means.
Once again global humanity faces the danger of depression and war. The only answer to this threat is the struggle for an international socialist program. This is the perspective of the SEP and the ICFI.
(The SEP and ICFI, are calling for a global socialist revolution; and I am not of that persusion)
II. Richard's Position On The Current Financial Crisis:
Capitalism died with the JP Morgan Federal Reserve bailout of Bear Stearns and attempts at resusitation have failed, as Financial Times Michael Mackenzie writes: "Strains across money markets intensified yesterday and are approaching levels last seen in mid-December when central banks announced liquidity provisions to alleviate year-end funding pressures. This was illustrated by higher swap rates, which compare the difference between overnight lending rates set by central banks and three-month Libor, the rate at which banks lend to each other... 'Despite the best efforts of the Federal Reserve to lubricate the wheels of the funding markets, the fact remains that banks still hoard cash at nearly all costs,' said William O'Donnell, strategist at UBS... 'If banks are loath to lend cash to each other, it's hard for us to see any standdown from historically tight lending standards now being reflected to consumer and institutional borrowers.
The Federal Reserves TAF, TSLF and PDCF facilities as well as similar initiative by Freddie Mac evidence that state corporate governance is quickly rising to replace capitalism; with the result that society is going to become all the more pyramid in shape, with a wealth elite ruling through economic and political "stakeholders", and a broad base of pauperized at the bottom. I do not have any right to do anything about either of the two things; as Jan Allen writes, I exercise 'the only right there is' -- the right to manifest as a child of God.
George Bush Removed All Constitutional Rights and Legal Rights
George Bush removed all Constitutional Rights on March 23, 2005 by announcing the Security and Prosperity Partnership of North America, SPP; here he abrogated constitutional authority, abolished national sovereignty, and committed the United States to Council Of Foreign Relations, CFR, trilateral regional governance by the year 2010.
George Bush removed all Legal Rights on May 15, 2006 by de-facto declaration of Martial Law upon sending the National Guard to the US Mexico Border; here he violated the Posse Comitatus Act, the 1876 U.S. statute, which prohibits the use of “armed force” for law enforcement.
And he further trespassed legality, by announcing in conjunction with other global leaders, the Declaration of EU US 2008: the result being that the Liberty Bell and flag have been retired.
What Rights Exist?
Given that "rights existing in law" are no longer in effect, one must look either to religion or philosophy to discover what rights exist.
Rights Found In Religion
Christianity holds there is only one right: “But as many as received him, to them gave he power to become the sons of God, even to them that believe on his name.” 1 John 1:12
Right or Rights can only exist where there is power. Where the power is, there the right is.
1 John 1:12 means that one, after having received Christ, has the power to “manifest as” or to “develop as” the son of God. In other words, one having received Christ, can exercise his right and actuates as the progeny of God.
Either one will manifest genuine concerning the faith of the Son of God, or one will manifest reprobate concerning the Son of God. Manifesting faithful to the Word of God is the only Right there is.
The Apostle John wrote 1 John 1:12, under inspiration of the Holy Spirit, to confront the "Law of The Jews” and the "Wisdom of Greeks – Wisdom of the Ancients". The Jews held forth the Prophets, The Nation of Israel and The Law for one's identity and experience. The Greeks held forth the wisdom of the ancients and philosophy for identity and experience.
Rights Found In Philosophy
Leo Strauss was a philosophy instructor at the University of Chicago. He developed and held forth Straussism. And today, Straussism is the prevailing and predominate philosophy of the age. Straussism presents the “Wisdom of the Ancients”: there is only one right: The Natural Right of the Few to Rule the Many.
Strauss called for "philosopher kings", that is "philosopher rulers", to arise to manifest this right.
His student-disciples, the Straussians, headed by Pual Wolfowitz left academia in search of political power. They called themselves neocons and constructed neo-conservatism or as some write neo-liberalism; they rose to power in the White House. Straussism is now the dynamo behind foreign and domestic policy.
Strussians hold that those who are fit to rule, are those who realize there is no morality -- that there is only one natural right – the right of the superior to rule over the inferior.
Strauss divided the history of political thought into two camps: the ancients are wise and wily, whereas the modern philosophers, like Locke and other liberals, are vulgar and foolish.
Strauss held that human beings are born neither free nor equal. The natural human condition, is not one of freedom, but of subordination. The Straussians, hold they are the wise Elite, and as such are to rule over the vulgar Many.
Yes, there is a conflict between Religion And Philosophy
Realizing the perceived difference about rights, the Apostle Paul communicated that the conflict is to be resolved in a non-resistive manner:
1 Corinthians 13:1-7: 1Let every soul be subject unto the higher powers. For there is no power but of God: the powers that be are ordained of God. 2Whosoever therefore resisteth the power, resisteth the ordinance of God: and they that resist shall receive to themselves damnation. 3For rulers are not a terror to good works, but to the evil. Wilt thou then not be afraid of the power? do that which is good, and thou shalt have praise of the same. 4For he is the minister of God to thee for good. But if thou do that which is evil, be afraid; for he beareth not the sword in vain: for he is the minister of God, a revenger to execute wrath upon him that doeth evil. 5Wherefore ye must needs be subject, not only for wrath, but also for conscience sake. 6For for this cause pay ye tribute also: for they are God's ministers, attending continually upon this very thing. 7Render therefore to all their dues: tribute to whom tribute is due; custom to whom custom; fear to whom fear; honour to whom honour.
Tyrannical Neocon rule is God’s Furnace and Forge, Hammer and Anvil where one’s right is learned, developed and exercised.
It is highly likely that a national emergency will arise: either the outbreak of pandemic bird flu, or rioting due to gasoline shortages, during the upcoming war with Iran, or a systemic risk financial breakdown.
The national emergency will require the use of United Nation’s peace-keeping troops under the command of NORTHCOM, for security and order. This will establish tyrannical state-corporate neocon rule.
If one be a genuine Christian, one will manifest his right – the power to actuate as the son or daughter of God; and in doing so he will manifest the presence of Jesus Christ, in a non-hostile and non-resistive way, to those who desire to rule over him, even if it means suffering or hardship or death.
Yet, being subject does not mean one can share in the deceitful deed of wicked governance: one is not to participate in another’s sin by counsel, command, consent, provocation, praise or flattery, concealment, partaking, silence, or by defense of a wrong done.
Furthermore, one is to come out and be separate from the world.
Paul served as living example of “the one and only right” in 2 Corinthians 4:7-10: We have this treasure in earthen vessels that the excellence of the power may be of God and not of us. We are hard pressed on every side, yet not crushed, perplexed, but not in despair; persecuted, but not forsaken; struck down, but not destroyed — always carrying about in the body the dying of the Lord Jesus, that the life of Jesus also may be manifested in our body.
III. Investment Application
The current chart of the US Dollar, $USD, it's about to go over the cliff as a run on the US Dollar is going to pick up steam; just as US Treasuries, as indicated by the chart of the Treasuries ETF, TLF, indicates that a run on the US Government Bonds is now underway: it was a 'three black crows' sell off of the US Treasuries, TLT.
Definetly an investment sea change has occurred: the bond market place independent of the Federal Reserve has called interest rates higher on the US Treasuries, $TYX, which is seen in the rate on the 30 year US Government bond rate rising to 45.42; we have clear, cogent, convincing evidence that a run on the US Treasuries is underway.
I recommend that one buy gold and put it far, far away from the current financial system, safe and sound in a guarded vault, like BullionVault and GoldMoney, with an account personally at streetTracks Gold Trust, and in physical possession of gold coins.
Here's the double edged sword: it could be that stocks, the EUR/JPY, and oil, could "continue to rally" on "liquidity" as indicated in Doug Noland's article Setting The Backdrop For Stage Two; and thus gold could easily fall to $875 or $850; the risk to defering purchasing gold is that one may not have full access to one's money market accounts or brokerage accounts when the soon coming Financial Emergency -- Financial System Breakdown comes.
IV. Related Photo
The photo below is of President George Bush with Robert J Stevens of Lockheed Martin and other business leaders in a March 2006 Security and Prosperity Partnership "Progress Meeting" held at the Cancun Summit; it exemplifies how stakeholders have been meeting in working groups to oversee and manage affairs of security and prosperity.
Nick Beams writing in Shades of 1929: the global implications of the US banking collapse, that the current episode has a basic dynamic in common with all past crises. As market participants have moved to reduce exposure to further losses, to step on the brake, the brake became the accelerator, amplifying the shock. Measured risk has increased more quickly than many institutions have been able to reduce it, and attempts to reduce it have added to volatility and downward pressure in prices, further increasing measured exposure to risk. Uncertainty about the market value of securities and about counterparty risk has increased, and many hedges have not performed as intended. The rational actions taken by even the strongest financial institutions to reduce exposure to further losses have caused significant collateral damage to market functioning. This, in turn, has intensified the liquidity problems for a wide range of bank and nonbank financial institutions.
In other words what is rational for the individual financial institution can produce disastrous consequences.
That is, the market rationality for the individual bank or financial institution produces social irrationality and madness. This madness cannot be cured by regulation, but only through the abolition of the financial markets and their replacement with a system of social control over the wealth and assets created by the labour of society as a whole.
The perspective of socialist revolution is grounded on objective processes in the historical development of capitalism. The current global financial crisis constitutes the opening of a new chapter in that history.
To understand its significance let us place it in context. In 1919, in the wake of the Russian Revolution, Leon Trotsky commented on the fact that the press of the day was preoccupied with the names of Lenin, the leader of the revolution, and Woodrow Wilson, the president of the United States, who had journeyed to Europe to try to prevent its spread to the rest of Europe. “Lenin and Wilson—these are the two apocalyptic principles of modern history,” he remarked.
Which would conquer? We now know the answer to that question. With the greatest difficulty, and only with the assistance rendered to it by the social democratic and Stalinist leaderships, through their betrayals of the working class, was the United States, after three decades of bloody war, depression, fascism and the death of tens of millions, able to restabilise the world capitalist system.
Economically, the new equilibrium rested on the strength of American capitalism. Now we have a crisis—the most serious since the 1930s—which has struck at its very heart.
This crisis signifies the passing of an entire historical era. For decades, the United States functioned as the stabiliser of world capitalism. Now it is the great destabiliser.
For the past 35 years, the world economy has functioned on the basis of the US dollar as the chief global reserve currency. This has conferred enormous advantages on the United States. But the decline of the dollar means that the US will face new challenges to its supremacy.
This is not a matter of anyone’s bad intentions, (this is very debatable, Richard), but arises from the logic of economic processes. How long can the rest of the capitalist world—the old powers in Europe and Japan, together with the new rising powers, China and India, as well as the oil exporting countries of the Middle East—go on funding the US to the tune of $2 billion a day, placing vast reserves in US debt instruments that are steadily losing their value?
Of course all the capitalist powers have an interest in preserving global stability—no one wants to provoke a crisis. But at a certain point, the costs of maintaining the present system become prohibitive.
How will the US respond to such a situation? We have already seen the answer to that question in Iraq. It will seek to maintain its position by military means.
Once again global humanity faces the danger of depression and war. The only answer to this threat is the struggle for an international socialist program. This is the perspective of the SEP and the ICFI.
(The SEP and ICFI, are calling for a global socialist revolution; and I am not of that persusion)
II. Richard's Position On The Current Financial Crisis:
Capitalism died with the JP Morgan Federal Reserve bailout of Bear Stearns and attempts at resusitation have failed, as Financial Times Michael Mackenzie writes: "Strains across money markets intensified yesterday and are approaching levels last seen in mid-December when central banks announced liquidity provisions to alleviate year-end funding pressures. This was illustrated by higher swap rates, which compare the difference between overnight lending rates set by central banks and three-month Libor, the rate at which banks lend to each other... 'Despite the best efforts of the Federal Reserve to lubricate the wheels of the funding markets, the fact remains that banks still hoard cash at nearly all costs,' said William O'Donnell, strategist at UBS... 'If banks are loath to lend cash to each other, it's hard for us to see any standdown from historically tight lending standards now being reflected to consumer and institutional borrowers.
The Federal Reserves TAF, TSLF and PDCF facilities as well as similar initiative by Freddie Mac evidence that state corporate governance is quickly rising to replace capitalism; with the result that society is going to become all the more pyramid in shape, with a wealth elite ruling through economic and political "stakeholders", and a broad base of pauperized at the bottom. I do not have any right to do anything about either of the two things; as Jan Allen writes, I exercise 'the only right there is' -- the right to manifest as a child of God.
George Bush Removed All Constitutional Rights and Legal Rights
George Bush removed all Constitutional Rights on March 23, 2005 by announcing the Security and Prosperity Partnership of North America, SPP; here he abrogated constitutional authority, abolished national sovereignty, and committed the United States to Council Of Foreign Relations, CFR, trilateral regional governance by the year 2010.
George Bush removed all Legal Rights on May 15, 2006 by de-facto declaration of Martial Law upon sending the National Guard to the US Mexico Border; here he violated the Posse Comitatus Act, the 1876 U.S. statute, which prohibits the use of “armed force” for law enforcement.
And he further trespassed legality, by announcing in conjunction with other global leaders, the Declaration of EU US 2008: the result being that the Liberty Bell and flag have been retired.
What Rights Exist?
Given that "rights existing in law" are no longer in effect, one must look either to religion or philosophy to discover what rights exist.
Rights Found In Religion
Christianity holds there is only one right: “But as many as received him, to them gave he power to become the sons of God, even to them that believe on his name.” 1 John 1:12
Right or Rights can only exist where there is power. Where the power is, there the right is.
1 John 1:12 means that one, after having received Christ, has the power to “manifest as” or to “develop as” the son of God. In other words, one having received Christ, can exercise his right and actuates as the progeny of God.
Either one will manifest genuine concerning the faith of the Son of God, or one will manifest reprobate concerning the Son of God. Manifesting faithful to the Word of God is the only Right there is.
The Apostle John wrote 1 John 1:12, under inspiration of the Holy Spirit, to confront the "Law of The Jews” and the "Wisdom of Greeks – Wisdom of the Ancients". The Jews held forth the Prophets, The Nation of Israel and The Law for one's identity and experience. The Greeks held forth the wisdom of the ancients and philosophy for identity and experience.
Rights Found In Philosophy
Leo Strauss was a philosophy instructor at the University of Chicago. He developed and held forth Straussism. And today, Straussism is the prevailing and predominate philosophy of the age. Straussism presents the “Wisdom of the Ancients”: there is only one right: The Natural Right of the Few to Rule the Many.
Strauss called for "philosopher kings", that is "philosopher rulers", to arise to manifest this right.
His student-disciples, the Straussians, headed by Pual Wolfowitz left academia in search of political power. They called themselves neocons and constructed neo-conservatism or as some write neo-liberalism; they rose to power in the White House. Straussism is now the dynamo behind foreign and domestic policy.
Strussians hold that those who are fit to rule, are those who realize there is no morality -- that there is only one natural right – the right of the superior to rule over the inferior.
Strauss divided the history of political thought into two camps: the ancients are wise and wily, whereas the modern philosophers, like Locke and other liberals, are vulgar and foolish.
Strauss held that human beings are born neither free nor equal. The natural human condition, is not one of freedom, but of subordination. The Straussians, hold they are the wise Elite, and as such are to rule over the vulgar Many.
Yes, there is a conflict between Religion And Philosophy
Realizing the perceived difference about rights, the Apostle Paul communicated that the conflict is to be resolved in a non-resistive manner:
1 Corinthians 13:1-7: 1Let every soul be subject unto the higher powers. For there is no power but of God: the powers that be are ordained of God. 2Whosoever therefore resisteth the power, resisteth the ordinance of God: and they that resist shall receive to themselves damnation. 3For rulers are not a terror to good works, but to the evil. Wilt thou then not be afraid of the power? do that which is good, and thou shalt have praise of the same. 4For he is the minister of God to thee for good. But if thou do that which is evil, be afraid; for he beareth not the sword in vain: for he is the minister of God, a revenger to execute wrath upon him that doeth evil. 5Wherefore ye must needs be subject, not only for wrath, but also for conscience sake. 6For for this cause pay ye tribute also: for they are God's ministers, attending continually upon this very thing. 7Render therefore to all their dues: tribute to whom tribute is due; custom to whom custom; fear to whom fear; honour to whom honour.
Tyrannical Neocon rule is God’s Furnace and Forge, Hammer and Anvil where one’s right is learned, developed and exercised.
It is highly likely that a national emergency will arise: either the outbreak of pandemic bird flu, or rioting due to gasoline shortages, during the upcoming war with Iran, or a systemic risk financial breakdown.
The national emergency will require the use of United Nation’s peace-keeping troops under the command of NORTHCOM, for security and order. This will establish tyrannical state-corporate neocon rule.
If one be a genuine Christian, one will manifest his right – the power to actuate as the son or daughter of God; and in doing so he will manifest the presence of Jesus Christ, in a non-hostile and non-resistive way, to those who desire to rule over him, even if it means suffering or hardship or death.
Yet, being subject does not mean one can share in the deceitful deed of wicked governance: one is not to participate in another’s sin by counsel, command, consent, provocation, praise or flattery, concealment, partaking, silence, or by defense of a wrong done.
Furthermore, one is to come out and be separate from the world.
Paul served as living example of “the one and only right” in 2 Corinthians 4:7-10: We have this treasure in earthen vessels that the excellence of the power may be of God and not of us. We are hard pressed on every side, yet not crushed, perplexed, but not in despair; persecuted, but not forsaken; struck down, but not destroyed — always carrying about in the body the dying of the Lord Jesus, that the life of Jesus also may be manifested in our body.
III. Investment Application
The current chart of the US Dollar, $USD, it's about to go over the cliff as a run on the US Dollar is going to pick up steam; just as US Treasuries, as indicated by the chart of the Treasuries ETF, TLF, indicates that a run on the US Government Bonds is now underway: it was a 'three black crows' sell off of the US Treasuries, TLT.
Definetly an investment sea change has occurred: the bond market place independent of the Federal Reserve has called interest rates higher on the US Treasuries, $TYX, which is seen in the rate on the 30 year US Government bond rate rising to 45.42; we have clear, cogent, convincing evidence that a run on the US Treasuries is underway.
I recommend that one buy gold and put it far, far away from the current financial system, safe and sound in a guarded vault, like BullionVault and GoldMoney, with an account personally at streetTracks Gold Trust, and in physical possession of gold coins.
Here's the double edged sword: it could be that stocks, the EUR/JPY, and oil, could "continue to rally" on "liquidity" as indicated in Doug Noland's article Setting The Backdrop For Stage Two; and thus gold could easily fall to $875 or $850; the risk to defering purchasing gold is that one may not have full access to one's money market accounts or brokerage accounts when the soon coming Financial Emergency -- Financial System Breakdown comes.
IV. Related Photo
The photo below is of President George Bush with Robert J Stevens of Lockheed Martin and other business leaders in a March 2006 Security and Prosperity Partnership "Progress Meeting" held at the Cancun Summit; it exemplifies how stakeholders have been meeting in working groups to oversee and manage affairs of security and prosperity.
WIDGETIZE