As we pursue the possibilities for false reforms of consolidated industries and markets with more consolidation of industries and markets and calling it a bail out, a few indicators currently confirm the problem, and the solution.
A 30% rise in the price of oil today indicates the consolidation of capital that is the liquidity crisis. This capital, consolidated, is not being used to liquidate the debt--grow the economy--in crisis, it is being used to bid up the price of a basic input which is both inflationary and deflationary at the same time.
The result is profit without growth which is given a favorable tax rate. It is the problem not, as McCain suggests, the solution.
Since the consolidated capital is not being used to buy the bad debt, it will be monetized through the treasury and the federal reserve system. This is being explained as the cause for the sudden rise in the price of a barrel of oil (a falling dollar valuation due to no real-economy growth from the investment of the capital) when it is the effect. It is a deliberate fraud and, again, what is wrong with it.
In terms of fundamentals, no-growth investments and profits (returns) should lower the price of oil because there is no demand being added, which fundamentally describes the crisis we are in financially. The effect of the investment is inflationary nevertheless which is fraudulently claimed to be due to demand exceeding supply. The result is also to give false support to the price per barrel and an uncertain value to alternatives which discourages investment.
The cause of the sudden price spike in oil is the sudden movement of consolidated wealth (private equity and hedge funds) out of equities and into oil futures contracts that were magnified on a short squeeze. Properly timed by the hedge fund managers this produced a big profit with no growth from the investment at a favorable tax rate. If this kind of capital management is allowed to continue with the favorable tax rate, the trillion dollar bail out of the credit markets will be paid by the least able to pay already beset with high inflation and low growth. The result is a fully intended disaster that demands command and comtrol of elite authority.
Another significant indicator of the operation of an overconsolidated capital being the source of our problems is hedge fund managers complaining about having to make an accounting of short sales as per the SEC. That eliminates the all-important black box necessary to manipulate market prices. If the fund managers do not behave legally, there will be a criminal liability if the data is not falsified.
Short sales are an effective way to manipulate market prices because selling large blocks of borrowed shares "causes" fear and a downtrend independent of real market values. In other words, it is an easy way to perpetrate a fraud and dictate prices, especially if capital is consolidated.
Tuesday, September 23, 2008
Applying the Hamiltonian Model of Political Economy
Events as we see them unfold are confirmation of the Hamiltonian model of power and political economy in full operation.
Alexander Hamilton, our nation's first treasury secretary devised a system of finance that perpetuates the power of financial elites through a banking system and tax structure that applies a trickle-down theory of economics and a regressive tax code to publicly finance it, which is exactly what we have now in operation.
The innovations necessary to conserve the elitist model of power have been monetarism and a practical, administrative model of bureaucratic power and political economy that we now see being brought to fullest fruition to manage the current liquidity crisis (over-consolidation of markets and capital).
Confirmation of the bureaucratic model of power and political economy--of an unelected technocracy applying the power of an elitist model with a false pluralistic legitimacy--indicates a mature consolidation of power that can do nothing but deconsolidate (pluralize) to maintain its legitimate administration. The elitist model will naturally succumb to the forces of pluralism--a natural sharing of power.
There is a soft determinism in operation here. We can resist the natural tendency toward a retributional reconciliation of value and allow for the natural course of pluralistic forces to ensure our peaceful prosperity. The choice is ours to make here and now.
Beyond the bureaucratic model of power and political economy is the reality of pluralism that keeps the peace and makes us prosper through the legitimacy of our collective wisdom that is the real public authority--the true arbiter of our lives, our liberty, our pursuit of happiness. "We The People" is a pluralism with real meaning beyond a Hamiltonian fantasy to keep The People subjected in its pursuit. It is a pratical utility, a practical reality, that is foolish to resist.
Obama/Biden 2008!
Very best wishes.
Alexander Hamilton, our nation's first treasury secretary devised a system of finance that perpetuates the power of financial elites through a banking system and tax structure that applies a trickle-down theory of economics and a regressive tax code to publicly finance it, which is exactly what we have now in operation.
The innovations necessary to conserve the elitist model of power have been monetarism and a practical, administrative model of bureaucratic power and political economy that we now see being brought to fullest fruition to manage the current liquidity crisis (over-consolidation of markets and capital).
Confirmation of the bureaucratic model of power and political economy--of an unelected technocracy applying the power of an elitist model with a false pluralistic legitimacy--indicates a mature consolidation of power that can do nothing but deconsolidate (pluralize) to maintain its legitimate administration. The elitist model will naturally succumb to the forces of pluralism--a natural sharing of power.
There is a soft determinism in operation here. We can resist the natural tendency toward a retributional reconciliation of value and allow for the natural course of pluralistic forces to ensure our peaceful prosperity. The choice is ours to make here and now.
Beyond the bureaucratic model of power and political economy is the reality of pluralism that keeps the peace and makes us prosper through the legitimacy of our collective wisdom that is the real public authority--the true arbiter of our lives, our liberty, our pursuit of happiness. "We The People" is a pluralism with real meaning beyond a Hamiltonian fantasy to keep The People subjected in its pursuit. It is a pratical utility, a practical reality, that is foolish to resist.
Obama/Biden 2008!
Very best wishes.
Friday, September 19, 2008
Classical Economic Crisis, Neo-Classical Means
President Bush characterized our present economic crisis as "unprecendented" requiring unprecedented measures.
This is false.
It is an attempt to mislead the public to think that this 200 year old means of finance, welfare for the rich (the Hamiltonian model of political economy in which the government supports the financial system and its elit ownership, command and control in whatever current form), is new and, therefore, unanticipated, evolving, and not a threat to the General Welfare.
Jefferson argued that Hamilton's model is, by definition, and will always be, a threat to the General Welfare, and it is the Natural Right, The Duty, of The People to ensure the General Welfare. The Bush administration and the McCain campaign falsely argue the novelty of the crisis to sustain the means of continuing it as the General Welfare, and continue to corrupt the Natural Right, The Duty, of The People.
The crisis--the liquidity crisis--is classical. It is the result of an overaccumulation of a surplus which is what happens with a regressive tax code that John McCain wants to sustain. He in fact offers the disease as the cure.
Classic liquidity crisis is simply this: so much money is surplused into capital ownership within the top economic class that there is not enough to drive (grow) the economy. The problem is classic. It has been going on for hundreds of years and culminated in the Great Depression in which monetarism was invented to add the consolidated liquidity that is called "illiquidity." The means to accomplishing the crisis became "neo" classical. Government operation in the marketplace is being defined, by Constitutional authority, as the General Welfare with the result, of course, being the classic crisis with the legitimacy of public authority, or the Will of The People, or by the Consent of the Governed.
Does the crisis and the means of perpetuating the crisis have your consent?
Continuing a regressive tax code--what McCain offers--is the problem.
A progressive tax code--what Obama/Biden offers is the solution.
The accumulation of income into the top one percent of income classes not seen since just before the Great Depression is no coincidence, and is not new. It is a clear indication of crisis and the accumulation was allowed to occur despite ample warning that was deemed socialist, communist or generally socially psychotic.
Monetizing our way out of the crisis just reinvents the problem. The evidence is overwhelmingly clear and convincing. A regressive tax code does not produce the General Welfare, it produces general crisis independent of monetizing the debt.
The Obama/Biden solution--raisng the tax rate at the top margin and lowering it for the other income classes--is very specific to the problem despite the criticism of bought-and-paid-for experts that claim otherwise hoping we will all ignore it or dismiss it as an unfitting simplicity to a complex problem.
Vote for the solution.
Obama/Biden 2008!
Very best wishes.
This is false.
It is an attempt to mislead the public to think that this 200 year old means of finance, welfare for the rich (the Hamiltonian model of political economy in which the government supports the financial system and its elit ownership, command and control in whatever current form), is new and, therefore, unanticipated, evolving, and not a threat to the General Welfare.
Jefferson argued that Hamilton's model is, by definition, and will always be, a threat to the General Welfare, and it is the Natural Right, The Duty, of The People to ensure the General Welfare. The Bush administration and the McCain campaign falsely argue the novelty of the crisis to sustain the means of continuing it as the General Welfare, and continue to corrupt the Natural Right, The Duty, of The People.
The crisis--the liquidity crisis--is classical. It is the result of an overaccumulation of a surplus which is what happens with a regressive tax code that John McCain wants to sustain. He in fact offers the disease as the cure.
Classic liquidity crisis is simply this: so much money is surplused into capital ownership within the top economic class that there is not enough to drive (grow) the economy. The problem is classic. It has been going on for hundreds of years and culminated in the Great Depression in which monetarism was invented to add the consolidated liquidity that is called "illiquidity." The means to accomplishing the crisis became "neo" classical. Government operation in the marketplace is being defined, by Constitutional authority, as the General Welfare with the result, of course, being the classic crisis with the legitimacy of public authority, or the Will of The People, or by the Consent of the Governed.
Does the crisis and the means of perpetuating the crisis have your consent?
Continuing a regressive tax code--what McCain offers--is the problem.
A progressive tax code--what Obama/Biden offers is the solution.
The accumulation of income into the top one percent of income classes not seen since just before the Great Depression is no coincidence, and is not new. It is a clear indication of crisis and the accumulation was allowed to occur despite ample warning that was deemed socialist, communist or generally socially psychotic.
Monetizing our way out of the crisis just reinvents the problem. The evidence is overwhelmingly clear and convincing. A regressive tax code does not produce the General Welfare, it produces general crisis independent of monetizing the debt.
The Obama/Biden solution--raisng the tax rate at the top margin and lowering it for the other income classes--is very specific to the problem despite the criticism of bought-and-paid-for experts that claim otherwise hoping we will all ignore it or dismiss it as an unfitting simplicity to a complex problem.
Vote for the solution.
Obama/Biden 2008!
Very best wishes.
Friday, September 12, 2008
The McCain Tax Increase
The McCain plan to make the Bush administration's tax cuts permanent will be an effective tax increase.
Although his campaign claims Obama will increase taxes, McCain's tax cuts will make the record budget deficits permanent as well which is one gigantic tax increase for incomes below the top ten percent already burdened with stagflation, a reliable effect of a regressive tax code.
McCain says he will cut spending. That, of course, is a very unlikely promise to keep. A more reliable measure is to progress the code, both stimulating the economy and reducing the budget deficit at the same time. McCain's plan will increase the budget deficit which requires a tax increase on the least able to pay which is deflationary, reducing tax revenue and the value of the dollar (stagflation).
Obama's plan is true to its purpose. McCain's plan is a complete misrepresentation--it will be neo-conservative, exactly what the McCain camp claims to reform. The "change" being offered, this "reform," is just a reformulation of the problem.
Obama/Biden 2008!
Although his campaign claims Obama will increase taxes, McCain's tax cuts will make the record budget deficits permanent as well which is one gigantic tax increase for incomes below the top ten percent already burdened with stagflation, a reliable effect of a regressive tax code.
McCain says he will cut spending. That, of course, is a very unlikely promise to keep. A more reliable measure is to progress the code, both stimulating the economy and reducing the budget deficit at the same time. McCain's plan will increase the budget deficit which requires a tax increase on the least able to pay which is deflationary, reducing tax revenue and the value of the dollar (stagflation).
Obama's plan is true to its purpose. McCain's plan is a complete misrepresentation--it will be neo-conservative, exactly what the McCain camp claims to reform. The "change" being offered, this "reform," is just a reformulation of the problem.
Obama/Biden 2008!
Wednesday, September 10, 2008
Trillion Dollar Tax Investment
A Senate subcommittee has disclosed that rampant tax evasion schemes marketed to foreign companies by major investment banks, like Lehman Brothers, have resulted in a loss of $100 billion in tax revenue each year for the last ten years.
The practical effect for allowing this to happen, so the theory of trickle-down economics goes, is economic growth.
The trillion dollar empirical investment and the resulting evidence--a bankrupt banking system and a gigantic budget deficit (a tax increase)--decidedly disconfirms trickle-down economic theory, wouldn't you say?
McCain and Palin support the trickle-down theory of economics as pro growth despite the evidence overwhelmingly being economic conditions not seen since the Great Depression.
If the recessionary trend has not yet affected you, vote for McCain/Palin, it will be coming for you!
The practical effect for allowing this to happen, so the theory of trickle-down economics goes, is economic growth.
The trillion dollar empirical investment and the resulting evidence--a bankrupt banking system and a gigantic budget deficit (a tax increase)--decidedly disconfirms trickle-down economic theory, wouldn't you say?
McCain and Palin support the trickle-down theory of economics as pro growth despite the evidence overwhelmingly being economic conditions not seen since the Great Depression.
If the recessionary trend has not yet affected you, vote for McCain/Palin, it will be coming for you!
Confirming Command Economy
The price compression on a barrel of oil due to overproduction with the artificially high, non-fundamental, fraudulent price not only adds value to the substitute, alternative supplies of energy, but serves as a clearly confirmed demonstration of the command mode of the global economy.
OPECs decision to cut production to support the price per barrel above $100 is a confirmation of power. It is not to get rich. The supra-sovereigns are plenty rich. No. It is a demonstration of power over what is natural; the law of supply and demand and the natural justice, the righteousness, that comes with the confirmation of pluralistic processes like a free market economics.
However, freedom cannot be expropriated or disallowed. It can only be artificially accumulated with a natural, unavoidable, retribution. The more retributive value accumulated, the worse off the elite really are. This is what Obama, a highly intelligent man, means when he says the elite seem to take pride in their own stupidity. The first thing a political scientist learns is that people do not necessarily know what their self-interest is.
Ultimately, Nature, God, dictates a free market. The supra-sovereign, super-natural, status of the elite is but a foolish conceit. Nature commands the reconciliation of truth to power. The people are sovereign by Natural Right--it is not an abstraction of human imagination, it is an observation, a realization. The retributive value will be paid one way or another. God gives us the freedom to choose the form of payment. It is a soft determinism.
The retributive value is a variable unnecessarily suffered.
Let's choose freedom in priority.
Obama/Biden 2008!
Very best wishes.
OPECs decision to cut production to support the price per barrel above $100 is a confirmation of power. It is not to get rich. The supra-sovereigns are plenty rich. No. It is a demonstration of power over what is natural; the law of supply and demand and the natural justice, the righteousness, that comes with the confirmation of pluralistic processes like a free market economics.
However, freedom cannot be expropriated or disallowed. It can only be artificially accumulated with a natural, unavoidable, retribution. The more retributive value accumulated, the worse off the elite really are. This is what Obama, a highly intelligent man, means when he says the elite seem to take pride in their own stupidity. The first thing a political scientist learns is that people do not necessarily know what their self-interest is.
Ultimately, Nature, God, dictates a free market. The supra-sovereign, super-natural, status of the elite is but a foolish conceit. Nature commands the reconciliation of truth to power. The people are sovereign by Natural Right--it is not an abstraction of human imagination, it is an observation, a realization. The retributive value will be paid one way or another. God gives us the freedom to choose the form of payment. It is a soft determinism.
The retributive value is a variable unnecessarily suffered.
Let's choose freedom in priority.
Obama/Biden 2008!
Very best wishes.
Tuesday, September 9, 2008
Alternative Value Destruction
The command and control of our economy, domestically and internationally, is largely being executed through the manipulation of energy prices.
Following the deflation of demand (demand-side economics that is the primary tool of a command capitalist economy) causing a global recessionary trend, the next phase is to destroy the value of the alternative supplies that have been directly supported by the price of oil.
The retrace in energy prices, and commodities generally, is a cyclical phenomenon that is the invention, the deliberate construct, of a command economy that has nothing to do with free-market fundamentals. It is not the legitimate product of a free-market pluralism that can be legitimately defined as the "natural" occurence of fundamental market dynamics that can be called the general will or welfare. Arguing this cycle as the product of market fundamentals is patent perpetration of a fraud.
Today, for example, with the probability of predicting the path of a cylone in the Gulf of Mexico being nearly zero, and OPEC declaring that our fundamental scarcity of oil is adequately supplied, the command price of energy markets is clearly indicated and decidedly confirmed as the price of oil falls under conditions for price support.
OPEC's "declaration" that supply levels will be maintained should be a reason for price support, not resistance, under scarce conditions. Destruction of the rate of substitution with a price being compressed to below $100 per barrel is in progress to give the demand side of the market less elasticity (demand-side command and control of markets).
The price of energy inputs is not the product of a fundamental market scarcity. It is the product of a fundamental fraud that is the sure product of a consolidated, non-pluralistic, organizational model. It both defines the problem and the solution that demands the political will required to change it.
Obama/Biden 2008!
Very best wishes.
Following the deflation of demand (demand-side economics that is the primary tool of a command capitalist economy) causing a global recessionary trend, the next phase is to destroy the value of the alternative supplies that have been directly supported by the price of oil.
The retrace in energy prices, and commodities generally, is a cyclical phenomenon that is the invention, the deliberate construct, of a command economy that has nothing to do with free-market fundamentals. It is not the legitimate product of a free-market pluralism that can be legitimately defined as the "natural" occurence of fundamental market dynamics that can be called the general will or welfare. Arguing this cycle as the product of market fundamentals is patent perpetration of a fraud.
Today, for example, with the probability of predicting the path of a cylone in the Gulf of Mexico being nearly zero, and OPEC declaring that our fundamental scarcity of oil is adequately supplied, the command price of energy markets is clearly indicated and decidedly confirmed as the price of oil falls under conditions for price support.
OPEC's "declaration" that supply levels will be maintained should be a reason for price support, not resistance, under scarce conditions. Destruction of the rate of substitution with a price being compressed to below $100 per barrel is in progress to give the demand side of the market less elasticity (demand-side command and control of markets).
The price of energy inputs is not the product of a fundamental market scarcity. It is the product of a fundamental fraud that is the sure product of a consolidated, non-pluralistic, organizational model. It both defines the problem and the solution that demands the political will required to change it.
Obama/Biden 2008!
Very best wishes.
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