Death of capitalism; bring it on

Capitalism is nourished by growth. Without growth it can’t survive. It’s a function of the debt-based monetary system which requires growth to cover future interest commitments.

We cannot easily address climate change without threatening the capitalist system’s very existence. It could be done, but the status quo has its head up its backside and won’t acknowledge the extent of the problem.

Eventually things will change, the sooner that happens the better for your children.

I’m not holding my breath.

 

Death of capitalism; bring it on

Capitalism is nourished by growth. Without growth it cannot survive. It’s a function of the debt-based monetary system which requires growth to cover future interest commitments.

We cannot easily address climate change without threatening the capitalist system’s very existence. It could be done, but the status quo has its head up its backside and won’t acknowledge the extent of the problem.

Eventually things will change, the sooner that happens the better for your children.

You’ve Been Trumped

The more I learn about the 0.1%, the more I’ve come to appreciate the motivation of those who manned the guillotines during the nastiest of revolutions.

It’s unfortunate that the new regimes invariably turn out to be at least as despicable as the old. Let’s hope that after the coming cleanout we can do better.

This exposé shows how the abominable Donald Trump built a couple of golf courses for the super-rich and destroyed a Scottish rural community in the process. He had the enthusiastic support of local big business, local government, and even the Scottish National Party

It will have you contemplating reaching for a pitchfork.

This Vimeo video won’t play on my Fridge Door; just click on the blue button below, and watch it on Vimeo’s website:

YOU’VE BEEN TRUMPED from Montrose Pictures on Vimeo.

Where does money come from?

How the money manipulators are ruining you

Part 1

Here’s a full length documentary by Paul Grignon explaining how it’s done. It’s 40+ minutes long, but if you’re pressed for time the first 10 minutes or so will be enough to get you hot under the collar. If you’re not into video, read my summary below.

Money As Debt:

this is a dummy line break
this is a dummy line break

Feel better now?

I didn’t think so,

Most people have trouble believing this stuff. Here’s a recent brief article in The Guardian lifting the corner to look at the sorry truth. Generally speaking, the news media don’t expose this outrage. Too many big players are reliant on the system to flourish and to maintain themselves in the ranks of the 1%.

The Guardian article refers to this document from the Bank of England which, surprisingly, confesses to the hidden-in-plain-sight dirty secret.

Here it is in a nutshell

Continue reading “Where does money come from?”

Dr Richard Wolff on the failure of capitalism

Capitalism created prosperity for me, my children, and most of the developed world. Unfortunately, it has now turned upon 99% of the population and is in the process of destroying its own foundations.

Richard Wolff explains how and why in this excellent interview with Bill Moyers.

You have the power

You are the 99%. You have the vote. What are you going to do about it?

How the 1% are cleaning out the rest of us: Part I

Occupy Wall Street posterThe Occupy Wall Street movement seems to be gaining momentum and there are people with a good track record of predictions—Dr Ravi Batra for instance—who believe that the time has come for such a movement to change the world. The non-productive money manipulators have broken the free market capitalist model and I’m hoping that pay-back time is nigh.

Where I part company with the Occupy Wall Street folk is that I don’t believe capitalism is the problem. Capitalism works well when adequately contained. It’s the failure of governments to regulate it that’s the problem.

Here is one of the ways the fat cats are creaming the system and destroying the world’s economy for the rest of us.

“Window Dressing”

The money managers borrow short term and use the loans to finance big risks without their shareholders’ knowledge. Then, prior to balance sheet publication, they sell the most toxic of those investments and pay back those borrowings. With luck, they make a killing on the dodgy assets without getting caught. The managers’ bonuses are earned on short-term gains, so their interests are not in line with the interests of their clients who want medium to long term gains on their investments.

The deceptive practice of some mutual funds, in which recently weak stocks are sold and recently strong stocks are bought just before the fund’s holdings are made public, in order to give the appearance that they’ve been holding good stocks all along.

The deceptive practice of using accounting tricks to make a company’s balance sheet and income statement appear better than they really are.
Investorwords.com

From The Wall Street JournalIt doesn’t always pay off as MF Global Holdings may discover very soon. The Wall Street Journal found such activity among “primary dealers,” major banks and securities firms that trade directly with the Federal Reserve are borrowing big during the financial quarter to invest in short-term high-risk investments to maximise their bonuses.When the end of the quarter looms they temporarily reduce borrowings by substantial amounts to hide their dodgy dealings.
Furthermore, the Journal reported in 2010: WSJ uncovered this dodgy practice at MF Global Holdings Ltd, who are filing for bankruptcy protection.

A Journal analysis of financial data from 18 large banks known as primary dealers showed that as a group, they have consistently lowered debt at the end of each of the past six quarters, reducing it on average by 42% from quarterly peaks.

Wall Street Journal 2011

Unfortunately the gambling hasn’t paid off this time:

From Reuters:

Call it the mother of all margin calls: Up to 50,000 former customers of bankrupt broker MF Global must find some $1 billion in additional collateral almost overnight, or be forced out of their trades.

Next: How the 1% are cleaning out the rest of us: Part 2