Surplus Product:
The fault in free market
capitalism is the historic issue of over production. The motivation of
capitalism is to gain a higher return on investment (ROI) than the going rate
of return. A functional capital market
will increase investment in sectors that are “hot” until it is over done. Since
there is a delay between decisions and the ROI people invest today on the
expectation of returns tomorrow. Using historical data is always misleading and
can not be true a discount of current value vs. future ROI. There will be more
houses, cars, structured investment instruments, etc. than the market can
absorb as supply out run effective demand.
The modern discount system escalate the boom
and bust effects. A million dollars in mortgages is turned into certificates
that generate additional money to fund more home loans that then are used as
assets to borrow more money until one dollar becomes ten. When the million
dollars in bonds have to be repaid or lose their market value it takes ten
million dollars out of the pool so the virtuous cycle becomes a malevolence
cycle. It is similar danger as buying on
margin.
The monetary policy is to
drop interest rates to make ROI easier.
The government pump primes by borrowing money and spending it. The scale
has to be right – too little too late will not work. As in taking antibiotics
you need to get a big dose and finish the course of treatment or the disease
will return in a more virulent form. The
political system has to be able to act and decisively or it won’t work. Peter
Druker’s theory was that war was the only way democracies could dispose of the
surplus property by shooting it at foreign enemies. Workers are paid to produce
the good of war but nothing enters the civil supply chain. Democracies have a hard time collecting taxes
and run surpluses when the economy over heats because human desires are endless
and politicians get elected by buying voters with public programs.
A real reserve fund is the
solution – save during the seven good years so you have resources in the rainy
day.
The central issue from the
17th century forward, is the shift from
the rule of established authorities by a established land owning ruling class
of king and church to a capitalist and republican form of government. The
empirical issue is the nature of mass publics. In “Reflections on the revolution in
The issue over the last few
centuries and today and in the campaign for democracy today is the problem of
the unlikely trust placed in ordinary people – are they a mass of unconscious
desires and hidden motivation aroused by the market managers, elitists and the
media or are they sovereign individuals endowed by their creator with reason
and citizen with rights. Is it Rush or
This years selection of
President have this in the background – can people, the great unwashed, the
masses take charge of their own affairs – can there be a government of the
people, for the people and by the people or is this a fairy tale – and grand
illusion?
According to General
Semantics, cognitive sciences, it’s the frame STUPID! The frame is the network of associations that
spring from the sub-conscientious with the brand.
Obama has a brand of hope and
change – a people lost in the wilderness about to cross to the holy land. The collection of tribes of all the people lost in the dessert
looking across to the promised land of milk and honey. The leader is a guide
and prophet, a coach getting the team into the supper bowl.
The Republican image of the
strict father offer security and freedom from reason. The people is to follow
and believe and not question authority. Ditto Heads…
Democracy in
There are some popular myths
about the nature of the American civilization.
The nation was a child of enlighten not a Christian revival. The Deists
and Freemasons who organized the “committees of public safety” and created the
propaganda that let to the “rebellion of the American Colonies” and was all
about CHANGE. The established order of CHURCH, KING, and State was gothic v.
the modern world which was rational, logical as opposed to faith based doctrine
based on tradition and authority. The idea that people could manage their own
affairs depended on people being sensible, not driven by superstitions, and
passions. The people must have a higher sense of the common good and see beyond
just personal, regional, racial, ethic, class or religious prejudices. The
“people” were property owners and educated. The masses were not to be
trusted. Without the balance of power,
public education, and a stable middle class Imperial tyranny would be replaced
by the rule of the mob.
If Mr. Edwards wants to
change “the system” he will have to convince the states to call a
constitutional convention to redesign the balance of power. The system we have has been successful
designed to prevent Democracy because popular rule would endanger civil
liberties and state sovereignty –
Democracy only requires majority rule within a parliamentary system. The American design was to prevent the state
from doing much, for better or worse.
The balance of power design was there because the founding fathers did
not trust the people or majorities that would abolish slavery, over tax or
regulate, tax trade to the disadvantage of one region or industry or
another. Our limited democracy is
another result of our original sin of slavery.
The attack on NYC cannot be justified, ignored or appeased but must be understood and fixed by the destruction of the root causes.
interesting AUDIO:
We will not get very
far if we don't understand what is going on - how we are organized to respond,
and the current nature of international black-mail (anthrax means black
carbuncle, malignant pustule - sent in the mail). The discussion has been off
the point - good and evil, global problems or just people who hate us - all
this maybe true but miss the vital issues - power, money, oil and Iraq.
If contemporary Islamic terror can be considered a variety of totalitarian terror, it becomes clearer just how limited the injustice theory and the question of "root causes" are. No doubt, injustices and policies can be argued over, but not as root causes of terror. Totalitarianism stands above such niceties. No injustices, separately or together, necessarily lead to totalitarianism and no mitigation of injustice, however defined, will eliminate its unwavering beliefs, absolutist control and unbounded ambitions. Claims of "root causes" are distractions from the real work at hand.
Off base - what are the real material causes
Poverty and inequality play a big part in the background - as in nation states the world is more stable with a big middle class, open opportunity for many, free markets, democracy and hope for the down trodden. A nation or a world with vast inequality and hopelessness can not be stable and peaceful - but it is not the immediate cause of the attack on the U.S.
Ideological and political extremism is part of the causes but not sufficient. They did not go through all this just because that hate us. They want something, not just ideas or fancy of an Islamic nation but real thing in the real world. What they want is control of the real base, the real cause of wars in the region is OIL, the core of middle eastern politics and the war on Iraq. A long term and organized military (covert espionage and sabotaging our economic and political system) is not an activity of a crazy minority - but of state action. Iraq feels they have lost a battle but not the war. If you make people really angry they need to be disabled from revenge. The Afghanistan situation is a double blind - or patsy - if you attack a big power you need good cover and distractions otherwise they nuke you.
In Italy some years ago some especially nasty kidnappers took the child of a rich family. They sent the family a part from their child - a toe or finger and offered to sent the child back in pieces if not paid off. The black-mail (anthrax means black carbuncle, malignant pustule - sent in the mail)ers have send us one message in civil aircraft crashing into the WTC - better and more real than a rogue nation with missiles - more powerful, cheaper, more accurate, and no one really know source except the belief in the double blind - the lone gunman - ( the Afghans and Bin Laden do not know who they are working with ) - we have received one finger and a note to pay up. (really to back off) The next message will be balloons with 50 Kilos of Anthrax down wind from DC that will kill a Hiroshima size population in DC (150,000) Then marital law, economic and political panic, censorship, or the Oh. Shit syndrome.
http://www.wnd.com/news/printer-friendly.asp?ARTICLE_ID=25220
We will not get very far if we don't understand what is going on - how we are organized to respond, and the current nature of international black-mail (anthrax means black carbuncle, malignant pustule - sent in the mail).
Struggle with big new concepts:
Are we
too comfortable with the way things were and not serious enough about painful
changes?
The
increasing inequality on the planet is confronted with the ideal of social
justice and the civil society with some sense of fairness. Reality is out of
joint with our institutions and ways of making choices. There is a growing
feeling that the current tribulations are bigger than our way of dealing with
global change and are greater than the passion for cooperation. In short events
are out of hand, we have lost control of the future, that events are greater
than our ability to plan and cope – it’s all to big and hard.
True
enough –
Visionary
leadership cannot in itself change a pattern of reaction, or over reaction to
proactive behavior and setting firm requirements to change the dynamics of
paradigm shifts. A shift from local, tribal, clan and family to national, from
national to international, from me to us, from ours vs. them to a more
universal feeling of humanity. Without
visionary leadership there is not a prayer people will shift their worldviews
on their own. The masses have to begin to understand they are not alone and are
interdependent on a new world order.
A simple case is state department visas, INS, border patrol, customs, coast guard, CIA, FBI, all with different computers and information, homeland defense, bioterrorism, secure visas and tracking, security cards, air travel, all around an issue of foreigners coming into America and doing us great damage. We have 10 million illegal residence, mostly doing jobs local don't want, how do we control our population. What we do has little to do with making us safer but adds to confusion, uncertainty, delays, inconvenience, loss of liberty, costs of doing business, and in counter productive - i.e. harmful.
The war in Afghanistan seems successful but threaten a increase in chaos, a war of all against all, and even the period of Russian control was better - much better - there was no famine, no free play of war lords, more real freedom, more choice, so the whole effort since 1978 has been a disaster - only has made things worse. Hard facts but true. We don't know what we are doing and therefore do dumb things.
There is a growing feeling that nation states are failed states not only Afghanistan and in Africa but modern societies because they cannot cope with current demands for safety, security and civil order. The torments of the shadows, the great game, seem beyond understanding and becomes a dangerous mystery. Size and complexity in themselves strain knowledge and a sense of security. It is just too hard and difficult, too many alternatives and uncertain unanticipated consequences for people to feel they have control of their lives, that ideology, theory, social science, can give us hope it will be figured out and progress will be made.
http://www.wiredbrain.net/terror.htm
http://www.wiredbrain.net/public-policy.htm
http://www.wiredbrain.net/economics.htm
Left and Right:
http://www.FrontPagemagazine.com and
http://www.TomPaine.com for example - rather than each side telling the other to shut up - be patriotic
What we think we know:
Right from Sept. 11th most of us knew that we were vulnerable. They could attack again and we don’t know where they were, who they are and what they have in mind.
Second, any military action or even good police work might have a very unpleasant response.
But to do nothing would not reduce the danger but increase it. If they, as they say, were out to so weaken US that we can no longer protect our friends and allies and so they can spread their “base” in the region, doing nothing or something stupid, as Reagan did in Lebanon and Clinton did about the embassies in Africa, does not reduce but greatly increases the danger. There is no risk free option.
So indeed we are between the rocks, where a evil group out to weaken the military, political and economic strength of Christian Civilization so they can expand their ideological empire, and the clear and present dangers of retaliations to our responses, we have no choice but to respond which is a hard place indeed since there maybe a very high cost.
So far so good as the man falling from 101 floors says at floor 10 – but we have special units in country, we have forces in the neighborhood, we have complex anti-taliban activities going on everywhere – the issue is the Taliban – if they go – Ben Laden goes (if he has not left already) and the training camps and facilities are lost to his use – necessary but not significant progress.
The reality has changed for a generation the “geo-political” landscape. The Christian civilized world, within the community of nations clearly has a mission. The mitigation of the wrenches and wretched life in the region, in Africa and South Asia leading to a more just world is a great challenge for globalization, free markets and civic societies.
When the rebels of North American Colonies took upon themselves to form a more perfect society they had in mind a message and hope for all of mankind. The ideal of a just civil society under the rule of law and due process was an invaluable human right, the way of reason and progress (except for blacks, women and Indians), which made a universal human claim on justice inherent in being born human. Justice, natural law and order was not given and can not be taken away because it is a divine right of man. Well, lets just do it.
Dr. Peter E. Pflaum, GlobalVillages
http://www.wiredbrain.net/
P.O. Box 2176 New
Smyrna Beach FL. 32170
Who am I ? see http://www.wiredbrain.net/pflaum.htm
If the issues of the war on terror is kept in the broad context the specifics of civil liberties, military and social policy, and all the complex issues can be held together without dissimilating factional fights which is now a clear and present danger. It requires the vision of Blair, and we can hope that the Bushes (or Powell) who have in the past had trouble with the “vision thing” catch the spirit and themes of a better world coming from the ashes of Sept. 11th. Without idealism and realism the long struggle will not hold together and will be lost in petty fights on the edges.
The campaign against terror requires idealism in terms of a world vision of a peaceful and more just world – realism in the needs of police powers and restrains on freedom in time of war. It comes down to trust – a community that trusts its leaders, trust each other, and even trusts foreigners and strangers. The realist who feels that a dirty war will be required and feels constrained by moral limits or international participation and feels that any means and ally is useful regardless of their moral standing, these hacks need to understand that public support depends on idealism, hope, trust and faith. If their methods undercut trust, it will not work. So as in most of life a balance is struck between the worlds we want and the worlds we have, realism is based on pragmatic and practical actions that work from where we are to where we want to go. Spiritual values and ideal work in mobilizing energy, creating union, forming supports, motivation for the long hall, and gives meaning and purpose to it all and holds the nation and the world together. Right wing dirty wars or anti-government or anti foreigner anti UN hatreds as well as left wing pacifism or anti-Americanism could weaken the cause and add to our dangers.
I have been saying for a long time that the old issues between traditional left and right is out of date, irrelevant and more that useless, nevertheless it persists partly because people have made a cottage industry out of ideologies. My favorite world leader Tony Blair repeated the modern attitude between idealism and realism in his Party Conference speech yesterday. The core ideals of the now world order is based on a rational (secular) community of nations and peoples. The globalization has made us all interdependent, economically, militarily, politically and ideologically. The community of nations has standards and goals – ideals and practical policies to make a better and safer world.
The old socialist ideal of equality did not understand that rational prudent management is critical to national well-being and not one of redistribution. A rational government is pro-business, pro enterprise, pro new technologies and maintains a prudent fiscal policy. New Labour supports a reasonable national defense, law and order, reasonable pro-growth tax policies, rational incomes and Labour standards to encourage change and innovation. These policies are not just stratagems to neutralize the right but because they are the greater good for the greater number. Low unemployment, interest rates, growth and good education are the best way to promote social justice.
In a global sense all governments should support, third way, new Labour, new democrat, centralist non-ideological policies to promote and ideal of a more prosperous, just and secure world. Without law and order inside the nations and internationally there can be no progress toward functional freedom and a more perfect union. International justice calls not just for more redistribution of foreign aid but real opportunities for the world peoples. Pakistan needs schools, Africa needs basic health systems, and everyone needs peace and a chance to get ahead. Afghanistan need peace and bread, then rational government, public services, education, health, development with indigenous resources. Then the basis of terror will diminish.
The left and right are really in agreement and should not allow the cottage industry of ideological extremist throw them off balance. Of course, nothing justifies terror. Of course, there are causes beyond the whims of a few crazies. Of course, we must use military action. Of course, we must make more friends and fewer enemies. Of course, nothing will work by itself and all together it still will be very difficult – military action, intelligence, target hardening, more security and police powers, public relations and propaganda, forcing a settlement on Israel and Palestine, reducing forces in Saudi Arabia and elsewhere that appear to be propping up unpopular states, reorganizing the military from cold war to global police peace making and peace keeping functions, working toward more open and progressive governments in our authoritarian allies, working with the UN and others in agreements on money, travel ID, chemical and biological weapons, economic development, civil rights, health, agricultural issues, trade, and everything else toward a more perfect planet.
The Americans, a practical people, instead of complaining
publicly about the snub, acted swiftly, effectively and cleverly.
On Sunday, September 23, Bush telephoned Russian president Vladimir Putin and
spoke to him for 70 minutes.
The moment both men hung up, the world we live in had changed and the strategic
situation in all its regions, including the Middle East, had shifted radically.
The United States and Russia, two old foes who faced off against each other for
half a century, became allies in a move that will influence history for the
next 25 years.
Both predominantly Christian countries joined in a military, economic and
political alliance to defeat Muslim international terror.
In one telephone call, Bush restored Moscow to the position of power it enjoyed
between the 1950s and 1980s.
Pakistan and Turkey will provide window dressing for this superpower alliance –
the former because it has no choice, and the latter, out of choice. Central
Asian countries, such as Tajikistan, Kazakhstan, Uzbekistan, Kyrgyzstan and
Christian Georgia are falling in line behind them.
The people who make a living as the defenders of the ideologies of the right and left are desperate. If the President has a broad consensus he doesn't need and want the extreme right. They can create a scare and raise money on the dangers of the liberals and the socialist. The left is somewhat in the same position, how can they raise money to defend against the center.
You see what I mean - These people depend on controversy and partisan politics - they are scared to death that we will all get along so they look for a fight. Their care more about their ideas or anger than God and country - just like Jonah
For example: At The Heritage Foundation, we tell the
truth - even when others won't - because the truth is the greatest enemy of
those who want to destroy our liberty and freedom.
Sadly, certain Americans don't share this view
http://www.wiredbrain.net/defense.htm
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