David Harvey- The Crises of Capitalism



okay so we've been through this crisis and there all sorts of explanatory formats out there and it's interesting to look at the different genres one genre is that it's all about human frailty I mean Alan Greenspan took refuge in the fact it's human nature he said you can't do anything about that but there's a whole world of explanations that kind of say it's the predatory instincts it's the instincts for mastery it's the delusions of investors and greed and and all the rest of it so there's a whole range of discussion of that and of course the more we learn about the daily practices on Wall Street we kind of figure there's a great deal of truth in all of that the second genre is that there's institutional failures that regulators were asleep at the switch the shadow banking system innovated outside of their purview etc etc etc and therefore institutions have to be reconfigured and it has to be a global of effort by the g20 something of that kind so we look at the institutional level and say that is failed and that has to be reconfigured the third genre is to say everybody was obsessed with a false theory they read too much Hayek and believed in the efficiency of markets and it's time we actually got back to something like Keynes or we took seriously Hyman Minsky is theory about the inherent instability of financial activities so we need to reform our theory if you like the next genre is that this is it has cultural origins now we don't hear that much in the United States but if you were in Germany and France so there are many people they're able to kind of say this is an anglo-saxon disease and and it's nothing to do with us and I happened to be in Brazil when it was going on and Lula was kind of saying well first off he was saying oh thank God the United States has been disciplined by the equivalent of the IMF we've been through it eight times in the last 25 years and now it's their turn fantastic said Lula and all the Latin Americans I knew until it hit them which it does and then they kind of changed their tune a little bit so those are kind of a way of which it got became cultural and you can see that by the way in which this whole Greek thing is being handled the way the German press is saying well it's the Greek character it's defects in the Greek character and and there's a lot of rather nasty stuff going on around that but actually there are some cultural features which have led into it for instance the u.s. fascination with home ownership which is supposedly a deep cultural value so 67 68 percent of US households are homeowners it's only 22 percent in Switzerland because it's a cultural value in the United States have been supported by the mortgage interest tax deduction which is a huge subsidy it's been promoted since the 1930s very explicitly in the 1930 was built up because theory was that debt income but homeowners don't go on strike so all along it's been kind of as a cultural value which has been promoted by kind of political economic processes so there's a cultural element in this as well and then there's a kind of notion that is a failure of policy and the policy has actually intervened and there's a funny kind of Alliance emerging between the Glenn Beck wing of Fox News in the World Bank both of whom say the problem is too much regulation of the wrong sort and the big devil in this is of course the way in which the Chinese have been manipulating their currency which is leading to imbalances if I wanted to take up a view my view of this it would be say well actually I think the mortgage interest rate deduction on housing in the United States warps the housing market and so if you really want to take that line seriously you should get rid of that so there are all of these all of these ways and all of them have a certain truth and skilled writers will take one or other of those perspectives and build a story and actually write very plausible kind of story up about this and I thought to myself well what kind of plausible story can I write which is none of the above which is one of the things I always think to myself and it's not hard to do particularly if you're coming from a Marxist perspective because you know there aren't many people who try to do this analysis from a Marxist perspective particularly with the long experience I've had of trying to work through Cinthia and how it works in urban settings and the like and I was really clued into this why by this thing that happened at the London School of Economics about a year and a half ago when her Majesty the Queen asked the economist how come you guys didn't see this thing coming I mean she didn't say it exactly that way but you know it's a sentiment and and they got very upset and then she actually called the bank of government Bank of England said how come you didn't see it coming and and and then the British Academy put forward this got all together all of these economists and they come up this fabulous letter to her majesty and it was and it was was absolutely astonishing it said well you know many dedicated people intelligent smart spent their lives working on aspects of this thing very very seriously but the one thing we missed was systemic risk you say what and then it went on to talk about a politics of denial and all the rest of it so I thought well you know systemic risk from you know I can translate it into the Marxian thing you're talking about the internal contradictions of capital accumulation and maybe I should write a thing about the internal contradictions of capital accumulation and try to figure out the role of crises in the whole history of capitalism and what specific and special about the crisis this time around and there were two ways in which I thought I would do that one was to sort of look at what's happened since 1970s to now and the thesis there is that in many ways the form of this current crisis has dictated very much by the way we came out of the last one that the problem back in the 1970s was excessive power of labor in relationship to capital but therefore the way out of the crisis last time was to discipline labor and we know how that was done it was done by offshoring it was done by you know Thatcher and Reagan and it was done by a neoliberal doctor and it was done all kinds of different ways but by 1985 or 86 the labor question had essentially been solved for capital it had access to all of the world's labor supplies nobody in this particular instance has cited greedy unions as the root of the crisis nobody this instance is saying is there anything to do with with excessive power of labor if anything is the excessive power of capital and in particular excessive power of Finance capital which is the root of the problem now how did that happen well we've been since the 1970s in a phase of what we call wage repression that wages have been remained stagnant the share of wage is a national income right throughout the OECD countries has steadily fallen it's even steadily fallen in China of all places so that there are less and less being paid out in wages well wages turn out to be also the money which buys goods so where few diminish wages then they've got a problem with where's your demand going to come from and the answer was well get out to credit cards we'll give everybody credit cards so we'll overcome if you like the problem of effective demand by actually pumping up the credit economy and American households British households have all roughly tripled their debt over the last 20 30 years and a vast amount of that debt of course has been in within the housing market now here too there's something very interesting which is when you look at the nature of the crisis everybody talks about the subprime crisis but nobody interprets it as a crisis of urbanization but it is a crisis of urbanization it's a crisis of urban form which had a lot to do a course with the suburbanization of the United States the continued proliferation of suburbanization and and all was going into it and so the the so the have the the property market became the center of crisis formation now this is not the first time that's happened since 1970s one of the ways in which she you often we solved the labor problem was offshoring in order to offshore you needed a new financial architecture which meant that you needed to reform finite global financial institutions and you did that in such a way that everything became very volatile you know currencies were moving all over the place and the volatility has actually contributed to a large number of crises since the 1970s so we've had hundreds of crises since the 1970s and many of them are being focused on housing and property development in the United States we had a huge savings and loan crisis and back in this country and 87-88 there was a real problem in the housing market so the Japanese land market crashed in 1990 in Japan hasn't covered recovered since in 1992 the Swedish banking system had to be nationalized because of the excessive development and property market the Southeast Asian crash in 1997-98 was triggered by excessive property development in Thailand and you suddenly look around and you see this world since 1970 been highly volatile a lot of the money's been flowing into things like housing and property development and a lot of that has gone bad and gone sour you've had these crashes after crashes after crashes and when you look back and you look at the pattern of crises since the 1970s you would see that present one and in this I think Lula is right there actually I remember writing around 2005 that if you looked at the aggregate data of the United States it should be like Argentina in 2001 and everybody looked at you said impossible but now the Argentinians are kind of saying yeah yeah you do look like we all were in 2001 the only thing is you haven't had a few revolutions and you haven't thrown our presidents and things like that which we do so so this is the volatility of the thing and so there's a long historical pattern here where you see crises forming and dissipating moving around Southeast Asia not East and Southeast Asia moved to Russia moved to Brazil moved to Argentina in fact it's just and and out of this comes a theory which is very very important but that capitalism never solves its crisis problems it moves them around geographically and what we're seeing right now is a geographical movement of that everybody says well ok everything's beginning to recover in the United States and then Greece goes bang and everybody says what about the pigs you know Portuguese you know that interesting they call them pigs Portugal and and you know Ireland and Greece and Spain sovereign debt crises and it's interesting you had a finance crisis we should find that in the financial system you sort of half solved that but at the experience expense of a sovereign debt crisis so the way in which the crisis gets manifest it moves from one place to another as a wonderful thing that I learned long long ago reading angles on the housing question when when angles kind of wrote the bourgeoisie has no solution to the housing problem other than moving the problem around and I think this is brilliant image and I make the same argument about crisis formation and when you look back it moves it around moves it around in different ways so moves around geographically and and of course we see the recovery being uneven geographically the Chinese roaring along right now but there but I'm very concerned about how they're roaring along there they're actually into a huge property boom property values in Shanghai doubled last year and the same thing has been going on a bit in India in other words they've they're getting out of the problem by doing what the United States was doing and getting into it and and a lot of that is debt financed and there's a peculiar way in which debt financing works it actually works in terms of both the beginning of the cycle of accumulation at the end of the cycle of accumulation and the best way to think of this is simply the image of the of the financial institution that lends money to developers to develop tract housing around San Diego and then lends money to buy us to buy up the housing so they operate on both the supply and demand and of course that can go on and on and on and on it has a things like that have a Ponzi character they have this kind of asset they asset building now what I did in the book was to talk a little bit about that history but also to talk theoretically about it and I tried to argue that actually if you look at the accumulation process of capital you see a number of limits and a number of barriers and there's a wonderful language that Marx uses in the grundrisse er where he talks about the way in which capital cannot abide a limit it has to turn it into a barrier which it then circumvents or transcends and then when you look at the accumulation process you look at where the barriers and limits might lie and the simple way to look at it is to say look a typical typical circulation process of accumulation goes like this you start with some money you go into the market and you buy labour power means the production you put that meat then to work with a given technology and organizational form and you create a commodity which you then sell for the original money plus a profit now you then take part of the profit and you recapitalize it into expansion for very interesting reasons which I probably can't get into here but that's what you do you've got to do there are two things about this one is there are a number of barrier points in here how is the money got together in the right place at the right time in the right in the right volume and that takes financial ingenuity so the whole history of capitalism has been about financial innovation and you could even go back to the sort of the formation of stock markets you can go back to all these things so it's always been about financial innovation absolutely essential and financial innovation has the effect of also empowering the finance ears and the excessive power of the Finance ears can sometimes they do get greedy no question about it and if you look at financial profits in the United States they were soaring after 1990 are going up like this profits in manufacturing were coming down like this and you could see the imbalance in this country I think the way in which this country has sided with the City of London against British manufacturing since the 1950s onwards has had very serious implications for the economy of this country if actually screwed industry in order to keep you know finance ears happy and and and you so you see those tensions and that all arises because of the power of the finances then the problem of the labor market I don't have to go into that but you know back in the 1970s there was indeed a real problem in the labor market not a problem there right now that's not where the barrier is there's then a problem in means of production it's a complicated story there but behind that lies the question of the limits in nature are there limits other natural limits and people are talking about that now this comes back although it's interesting that question always comes back when there's a crisis it came back in 1970s when there was a crisis remember limits to growth and all that kind of stuff it always comes back and I think one of the thing reasons it comes back is because what you know whether it's real or not there's another interesting question where the Peak Oil is real or not it's an interesting question but capitalists when there's a real problem start saying well the problems not me it's the limits in nature see you displace you displace the problem of capitalism by saying it's a natural you know it's it's natural somehow so there's that problem then there's a problem of Technology's an organizational form that continuous innovations in that that are absolutely essential for the dynamics of system but on the other hand continuous innovations particularly when they go very fast can be very disruptive so you can get crises forming out of the patterns of technological change and you can document that historically then there is the problem of crises in the labor process the discipline of labor again back in the 60s and 70s labor discipline on the shop floor was a real problem not a problem anymore they found docile labor forces all over the place so it's not really a problem anymore and then there's a problem of the market how you know where's the more gonna come from at the end of the day where's the more money coming from the more effective demand now as an interesting question there where that extra effective demand is going to come from and their effective demand their various ways in which could be solved historically you could say well actually was all the feudal lords who had all that gold and you could actually you know sell stuff to them and so there was if you'd like a gold reserve a money reserve in the feudal classes I mean there's a bit of that left and there's a lot of gold in the Vatican which they may have to sell off to pay for the sins of their priests but that's another question but there's not much left there's not much feudal residual there then there's an outside of the system which Rosa Luxemburg talked about you know the word nineteenth-century a lot of silver in China so you get the Indians to grow opium to sell to the Chinese the silver comes to India and then the Indians have to pay the silver for the textiles which are which are imported from Manchester so you get something of that than that kind you can't do that anymore so the effective demand has to be internalized that is the demand has to come from within the system and the only way that can be is by expanding the system so that in effect what happens is the you mop up yesterday's excess product by tomorrow's expansion in order to do that you need credit on the end of the system so the financier is stepped in at the end of the system as well so the financier start to play this absolutely crucial role in the whole process now the result of this is that you have got a system which historically has expanded since 1750 if I can read Madison's data right at around 2.25 percent per year compound right if you look at all of the you know the general stuff in the financial press and everywhere else people will say well a minimum of expansion of this system is 3% okay it's better if you'd get more than that but if it's less than that it's getting sluggish and people are having real problems and of course you get to zero you're in crisis so crisis is defined a black of growth lack of the 3% growth so there's this big struggle to maintain growth compound growth now in 1970 compound growth given the size of the global economy meant you had to find new profitable investment opportunities for something through something like zero point four trillion dollars now if you want to resume 3% compound growth you've got to find profitable opportunities for 1.5 trillion dollars in twenty years time you're going to need three trillion dollars of profitable investment opportunities part of the thesis I've got going here is that actually we are an inflection point where compound growth of that sort is no longer really feasible and actually looking backwards at what's happened since 1970 you would say there are plenty of signs of that plenty of signs of that since the 1970s less and less growth has been about making real things and more of it has been about asset bubbles and all the rest of it in other words you look back at the pattern people couldn't find anything to invest in was profitable except investing in you know derivatives of insurances on derivatives of insurances and and and so you get more and more things of that sort and you start to get new markets forming which a fictitious markets one of the big ones right now is carbon trading carbon traders the ridiculous kind of concept but on the other hand we're gonna have a big market in it and already people will be making a bundle out of carbon trading on European markets and they're going to try and make a bundle even more so we're going to cut these so we already see in the past these fictitious markets forming which are absorbing part of the surplus that couldn't be absorbed in real real production we can have more and more and more of that put in physical terms imagine 3 percent compound growth when capital was constituted by what was physically going on in Manchester Birmingham a few other hotspots in the global economy say in the 1750 1780 imagine 3 percent compound growth on everything that's going on in China right now everything that's going on in Europe everything's going on in North America much of Latin America Africa not so much maybe you know I mean physically it starts to look horrendous when you start to say the 3% compound growth on that and I think that is the underlying problem everybody says we've got to get back to growth you can't do it and actually the only way you can do it is by creating fictions that cannot last and so we're going to get increasing speculative activity in other words you can't regulate financial institutions if you prevent the financial institutions from creating fictitious markets that is where we're going that is where we have been going over the last thirty years and we're going to go there even more more after now the result of this is to say look I don't think compound growth forever is the possibility politically this means that you need to get a hold of the creation of the surplus somehow or other there has to be social control over the production and utilization of the surface surplus which is going to require a completely different form of economy from that that is given to us by the capitalist rules of engagement so we have actually any sensible person right now would join an anti-capitalist organization and and you have to because otherwise we're going to have this continuation and notice it's a continuation of all sorts of negative aspects for instance the racking up of wealth you would have thought the crisis would have stopped that actually more billionaires emerged in India last year than ever they doubled last year the wealth of the rich I meant just read something this morning in this country has has accelerated just two years just last year what happened was that mainly leading hedge fund owners got personal remunerations of three billion dollars each in one year now I thought it was obscene and insane a few years ago when they got two hundred and fifty million but they're now hauling in three billion and as the famous statement think by Andrew Mellon was way back in a crisis he said assets returned to their rightful owners ie him and and that that in effect is is the plug of financial the financial world right now yeah their assets are gonna return to us now that's not a word world I want to live in and if you want to live in it be my guest but you've got to start thinking and what bothers me about academia and as Laurie mention is I don't see us debating and discussing this I don't have the solutions I think I know what the nature the problem is and unless we're prepared to have a very broad-based discussion that gets away from you know the normal kind of problem you get in the political campaign and you know everything's gonna be okay here next year if you vote for me yeah it's crap you should you should you should know it's crap and and and and say it is and and we have a duty it seems to me those of us are academics and seriously involved in the world to actually change our mode of thinking now changing the academic mode of thinking is not going to revolutionize anything but on the other hand it's a necessary condition for some revolutionary change to occur it has to occur in many many different areas and and this seems to me as a main main point I would want to make about the book that crises get moved around both in terms of their form it's a financial crisis and an effective demand crisis right now it gets moved around geographically here it's you know in Southern California or now it's in Greece and and after Greece is over it'll be in Spain or it'll be in Ireland or them like God you might have a sovereign debt crisis in this country and what were the politicians say then poor things I mean it's just so we moved it around so it moves around and this these these kinds of ways and and we have to get a grapple grasp on that that's in effect what I was trying to say is that what I can tell you and show just considerable degree is how it's moving around why it's moving around and what the inherent problems are in it well I've spoken long enough so let me leave it there thanks very much I just want to it just a couple of things I'd like to raise with you I don't want to hog this at all because there are so many people here and I'm certain you've got so many questions just interested because we're course all in the middle of the election campaign here at the moment and of course it's interesting I don't know whether you've had a chance to look at the way in which the various candidates and political parties are talking about the economic crisis and talking about the resolution of the economic crisis it seems to me just to mention something I just mentioned to you before the ways in which almost members of the Labor Party have been instructed persistently instructed to refer constantly to the global nature of the economic crisis as though they've all been taken into a room and stole that they must say global but in fact I mean this this idea that there is this is something which has affected the the entire world and there's nothing specifically to do what is going on in the UK you would like to suggest is really a myth yeah and and and beyond that I mean it's so interesting I mean in Germany they they kind of say you know it's made in USA on the other hand German industry was booming by exporting to the debt-laden US economy and and they're they're pretending it has nothing to do with them when in fact it had everything to do with them and and again and again and again you'll do it you'll see people avoiding you know dealing with it and and and the Greece thing and and and actually the same thing is particularly interesting if it wasn't for German investment around the Mediterranean littoral and around all those condominiums that are now standing empty the Spanish economy would not probably be heading down the chute as it is right now so in other words the Germans have played a key role in creating the problems in Greece and and and United States and they say it has nothing to do with them they were good honest Germans just working on what they were doing and you know but everybody does this the people in the US do it they blame China you know it's a Chinese and I'm sure the Chinese blame the US I mean so there's a tremendous kind of game being played here which actually talked about the politics of denial it's real what about the relative insulation relative insulation in some countries from this man we all know about ISIL and the way Iceland does it we're went the whole line and came partly engaged in Indies at the spurious forms of investment but what about countries which somehow managed to escape the worst effects what was it about the nature of those countries about their economic policies which in allowed them that degree of insulation well it berries I mean you know the neoliberal line was not universally adopted and it is probably true there that say Germany did not dismantle its social protections or Sweden didn't dismantle its social protections in the same way when the problems arose they didn't have the need for a stimulus package in the same kind of way but then there's some very odd things for instance I was in Lebanon last summer and I said how's the house the crisis affecting you and they said not at all they said well why not and they kind of said well you know we have such a huge building program three rebuilding after the Israelis bombed us there that actually we have full employment and and you know and you kind of go well this is bizarre you know what are we going to do suggest that actually the solution for United States is to have somebody bombed the United States and then they can then then they'd have a stimulus program you know that might work you know but it's so it's so interesting when you go to two different places you find different policy networks and and and so there's an what I call an uneven geographical development of it and and it's very hard to track I mean I would not have expected the crisis erupted in Greece the way it's done and the way in which that is now threatening the whole euro which is actually then gonna be troubling for the whole global financial system I wouldn't have expected that there's a lot of unintended consequences and flows and interactions which and the remittances the the fact that in in in New York a large number that servants are from Haiti the flow of remittances to Haiti has dropped up like like crazy and Haiti's being and you know before before the earthquake it was in dire trouble because of the lack of remittances same is happening in places like Kerala in India which we rely on it and and you know the interconnectedness is is is is there and you've got to track it all in it very difficult to do if only one person who's thinking about it one one other question that was a political question about the contemporary situation but are we're talking about the future I mean you provide a very dramatic description of neoliberalism and the emphasis upon individuality and personal self fulfillment and entrepreneurship and all of this did I mean at a time when you might have thought some sort of collective reaction to the recurrent crisis of capitalism was being demanded this is the time when neoliberalism appears to have unleashed individuality in a form in which we've never seen it in history before so there seems almost a paradox there where can we look for hope in the idea of some collective response to these recurrent crises when individualism is so rampant yeah I mean one of the things I found that sounds very distressing there's some survey data on people who lost their homes the United States and the primary source that they blame for it is themselves they don't blame the system not at all and and but this is the depths of an ideological configuration and and it takes a long time to shake that up the one cause for hope I have is that we should look back say in the United States there's a collapse of 1929 it wasn't until 1933 that you start to see the big collective social movements that kind of say enough is enough and and you start to see immense pressure on Roosevelt to do something like you know Institute all of those things that we now with like social security and and you know you know reforms of the banking system and all the rest of it and it took about four years before that really came to mature of maturation one of the arguments are making the book is I think we're in a legitimation crisis the legitimacy of neoliberal kind of ideology is in question and but nobody knows exactly what to put in its place and I think it's a searching for what to put in its place but it's going to take a little while I think before if you like that legitimation crisis produces a political movement of some kind at least that's my hope you




Comments
  1. Marxism is Racism and racism is always bad. Most informed people are aware Poor old Karl, led a crappy self-indulgent life, as a drunk, a rapist, and out right racist who’s life’s work was dreaming up new ways of updating ancient anti-Semitic prejudice veiled in 19c economic, social class mumbo jumbo, (labour theory of value anyone?) , and a big dose of delusional utopianism as the eschatological desert. If one takes Kooky Karls 1844 essay " On The Jewish Question" as a guide to his later confused writings, his anti-Semitic racism becomes very clear.

    Racism is always a bad thing, but Marxism is a particular virulent form of racism. The cult followers Karl Marx ignore how he hated Mexicans, maliciously used the “N” word and in spite of being of Jewish origins himself was an unrepentant anti semitic racist. Karl’s lifelong racism informed his “theoretical” rhetoric in a tactical approach that intentionally obscured the disproportionate negative impact of his utopian “theories” and schemes on the Jewish people. Karl’s kooky theories always fail, the USSR, North Korea, China, Cuba , Mugabe land, Venezuela evidence the never ending failures of this kook’s social “theories”.

    Many, like Dave here say Marx is difficult to read , and yes crazy nonsense usally is. Kooky Karls" labour theory of value" is the biggest hint you are moving into Nutty Ville , ignore that kind of a hint and you are lost forever. Karl’s self Nutty Ville nonsense models a rhetorically closed self-justifying system, subjective definitions, an absence of natural economic or independent price signals, lack of internal consistency, the pagan wackiness of “historical materialism”, sectarian intolerance, racism, anti-Semitism a series of rather glaring epistemological problems and so on. Welcome to Nutty Ville !! A model town for anti-Semites.

    Karl’s obscuring rhetoric of class, capital, bankers, false consciousness, and so on veils the anti-Semitic characteristic of his ‘theories” and how they impacted (particularly in the west) Jews more that others. Karl himself was a drunk and failure he spent most of his life in debt and blamed the Jewish people for his own economic failures, a petty and vindictive egotist – his “theories” were his idea of revenge, a revenge designed to attract cult like followers. Lenin the mass murder and close follower of Karl , loved the quote “ Anti-Semitism is the socialism of fools” the inverse that “ Socialism is the anti-Semitism of the tenured class” is just as true. At the end of the day it is not possible to be a Marxist without being an anti-Semitic racist.

    Someone should give this poor old Harvey (and his pals here) a copy of Nathaniel Weyl’s book, “Karl Marx: Racist”, it appears he has spent a lifetime “oh so politely” promoting the most virulent racist in human history.

    The racist Karl Marx exemplifies his bigoted understanding of Jewishness and free commerce (or as some might call it capitalism) in this quote from his 1844 essay “On the Jewish Question,”

    What is the worldly religion of the Jew? Huckstering. What is his worldly God? Money. … Money is the jealous god of Israel, in face of which no other god may exist. Money degrades all the gods of man—and turns them into commodities. … The bill of exchange is the real god of the Jew. His god is only an illusory bill of exchange. … The chimerical nationality of the Jew is the nationality of the merchant, of the man of money in general.

    After writing " On The Jewish Question" in 1844 Kooky Karl spent the rest of his life concocting screwy pseudo economic rationales for policies that inflicted disproportionate economic and social displacement on the Jewish people followed by his own final solution of gradual “assimilation” as the answer the “question” of the Jewish people. Today Marxist racists, (or as they are now known as Cultural Marxists, the Politically Correct, or social liberals) still hate Israel, and rhetorically “high grade” the Jewish people using a host of code terms like “the 1%”, “bankers” and so on. Virtually every aspect of Marxist “cultural policies” have a disproportionate negative impact on the Jewish people, the facts speak for themselves, Marxism is racism.

  2. This guy is a whore for the 1%elitist.  Bella Dodd was a leader of the Communist Party of America (CPUSA) in the     1930' s and 1940's. Her book, "School of Darkness" (1954) reveals that     Communism was a hoax perpetrated by financiers "to control the common man"     and to advance world tyranny.

  3. Hopefully, this simple explanation (and truth) about the problems that our lying media isn't telling Americans will be grasped by our simple minds over here in America. We are pretty brainwashed when it comes to defending capitalism (i.e., depending the whip master as he beats us senseless)….

  4. So I'm a little lost on this. I get that capitalism has its issues. I also know its brought us a lot of great things. I tend to favor it as it uses rewards to motivate me. Ideally if I work hard or have a good idea, I can move up the social ladder.

    Whenever I read any history on socialism or communism, I get the opposite feeling. Those systems use force to control people. Instead of rewarding good behavior, they just punish the bad behavior. (Makes me think of the guy that made Tetris, he got next to nothing for his hard work and creativity)

    I might just be naive in all of this (I probably am). Can anyone enlighten me, preferably without being condescending? I can't imagine with all the horrors of the past committed under socialism and communism that there are a lot of good things we can take. I even remember reading studies of how people from west Berlin are more likely to cheat.

    On a side note, I really dislike socialist government policies where I live. I have 4 younger brothers, 3 on welfare, food-stamps, cash assistance, healthcare, etc… I worked a lot of minimum wage jobs to get where I am now, but they have no motivation as long as they can get free stuff, they will. How does socialism or communism address that? Will it use force and make them work? I feel that's just as wrong as what my brothers do. (One won't even marry his girlfriend because they would get less, they make more free money by lying….)

  5. God, this is absolute drivel. Could anyone post a 'The Crises of Socialism/Communism'. Warning: One would need more than 31 minutes to critique that contemptible ideology

  6. Greed/delusions of investors. Institutional failures (ie banks). Necessitate the reconfiguration of banking. False economic theory-Reform. 3-Cultural Origins, an "Anglo-Saxon disease. German press accuses Greek character. US fascination with home ownership (77%) from the 1930s on. Glenn Beck accuses regulation, Chinese manipulation of currency. We missed systemic risk. Labor in respect to capital, outsourcing. Wage repression. Diminished demand. Credit cards used to increase demand. A problem of urbanization. Offshoring, new financial architecture, causes volatility. Housing crises since 1970s. Excessive property development causes volatility. crises form and dissipate. Fixing crisis moves problem to another area (Engels). Called crisis formation, moves geographically. Property values in Shanghai doubled last year. Operating on both supply and demand. Theory Accumulation of capital, it becomes a barrier then circumvents and transcend. Start with money, buy means of production, create a commodity, sell for money plus profit. Take profit and repeat the cycle. Greed of financiers. Sided with London against British manufacturing. The Labor Market in the 1970s. Are there limits in nature? Discipline of labor a problem in the 60s-70s. The market, where does money/demand come from? Demand has to come from within the system. Expansion requires credit. The result is an expanded system by 2.25% compound. Fictitious markets absorbing the surplus. ie Carbon. 3% compound growth in China, Europe. Starts to physically look horrendous. Social control over the surplus. Anti capitalistic monitor. Racking up of wealth. Billionaires in India. Assets return to "us", rightful owners. Crisis is moved geographically. "God forbid theres a sovereign debt crisis in this country!" The way the political parties are talking about the resolution of the economic crisis. Germany says one thing, does another regarding exports. Lebanon has a huge rebuilding program, after Israeli bombings. Uneven geographical development topic. In New York a large number of domestic servants are from Haiti. Neoliberalism unleashes individuality. Collective response to recurring crises. Immense pressure on Roosevelt to institute Social Security, reform the banking crisis. Legitimacy in question, not sure how to replace it.

  7. Greed/delusions of investors. Institutional failures (ie banks). Necessitate the reconfiguration of banking. False economic theory-Reform. 3-Cultural Origins, an "Anglo-Saxon disease. German press accuses Greek character. US fascination with home ownership (77%) from the 1930s on. Glenn Beck accuses regulation, Chinese manipulation of currency. We missed systemic risk. Labor in respect to capital, outsourcing. Wage repression. Diminished demand. Credit cards used to increase demand. A problem of urbanization. Offshoring, new financial architecture, causes volatility. Housing crises since 1970s. Excessive property development causes volatility. crises form and dissipate. Fixing crisis moves problem to another area (Engels). Called crisis formation, moves geographically. Property values in Shanghai doubled last year. Operating on both supply and demand. Theory Accumulation of capital, it becomes a barrier then circumvents and transcend. Start with money, buy means of production, create a commodity, sell for money plus profit. Take profit and repeat the cycle. Greed of financiers. Sided with London against British manufacturing. The Labor Market in the 1970s. Are there limits in nature? Discipline of labor a problem in the 60s-70s. The market, where does money/demand come from? Demand has to come from within the system. Expansion requires credit. The result is an expanded system by 2.25% compound

  8. Yes, obviously only those operating a vehicle on public roads need auto insurance. And I agree that the health insurance mandate is utterly unacceptable. My point to Manos Seferidis was that in capitalist nations, even in India, no one is forcing anyone to buy anything, and so such a claim was false and so not a legit indictment of capitalism or even consumerism which is totally voluntary.

  9. You say that in the USA you have to buy auto insurance. That is not true. You need only purchase it if you own a car or drive. I know a number of adults who have no auto insurance because they do neither. However, the ObamaCare mandate IS a compulsory purchase. For the first time in American history, the government can now force you, simply for being an autonomous citizen, into a private contract. This goes against everything this country was founded on.

  10. There is only one economic system that has ever raised the standard of living in a society. There are ZERO examples of any other system supporting the achievement of mass creation of value, innovations in science and technology and medicine and engineering, and the expansion of the ability of the individual to enjoy a self-directed life: capitalism. This "crisis of capitalism" bullshit is a delusion of what "should" be in the mind of those who would take from others for their own purpose.

  11. I have realized that my understanding on this subject, is a bit too limited, and that not every little aspect of what I've written here is completely accurate. I need to study this further. So, thank you for making me realize that. However, I do stand by my claim that currencies gradually gets devaluated as years go by, and that all money is based on a debt that is gradually growing. Also my description of fractional reserve banking should be correct. I consider this discussion complete…

  12. I have so far in this conversation only looked at the pure economical mechanics of capitalism. To expand it to a certain extent, and involve the real human relations, I will just briefly mention the fact that we live on a globe where 1 billion people are starving everyday, and there are enormous gaps between the rich and poor. We have about 1% of the people on the planet owning 40% of all it's wealth. This is neither necessary nor just. I think we really ought to reconsider our economic system..

  13. The fractional reserve practice used by virtually every central bank in the world, creates more debt through loans, than we have resources to back it up with. If we did, we wouldn't have this enormous expanding debt. For every transaction made in the banking system, about ten times of that amount can be created out of thin air. I do personally think it's a bit unsettling that all money in existence is made from debt. And I believe this "house of cards" will eventually come tumbling down….

  14. About the value of commodities, that was kind of what I refered to in that correction comment: If an item costs more money over time, it's not therefore more expensive, but rather the increasing price is caused by 1. Scarcity of a particular item which drives prices up, or 2. Inflation, or 3. Both scarcity and inflation. The problem as I see it, is that fiat money has no real intrinsic value.
    It's in reality nothing but paper, and is worth nothing while commodities contain real value…

  15. but even when prices don't go down, value has usually gone up, so net effect is zero. We may note that the price of milk has gone up, but how much of that is ice cream & cheese? Ready availability of ice cream& cheese is a value added to the society – it is richer. Some milk is held off-market while curing into cheese, driving down milk supply & thus driving up it's price & ice cream requires freezing, driving demand for energy. Dairy farmers withhold supply when price going down..oh so human!

  16. All your recent comments were marked as spam. I clicked Not Spam. I do think you are conflating the economy & private lending with the effects upon the economy caused by government piss-aways of money. It is the piss-away that causes most inflation. There will be some inflation in a healthy economy cuz growth is uneven, thus as Mr. Ganguly makes more money, he buys more stuff, driving up prices, but only till more suppy kicks in, which it will but later. Some prices will then go down, some not..

  17. Government debt is another matter. Government debt, if too large, will cause inflation, for instance, see the good yield of Venezuelan bonds & resultant inflation in Venezuela. Excessive govt debts are usually caused by social spending in excess of revenue, and war. That money does enter the economy, minus the interest that must be paid, so a dollar may become $0.80. Social programs, for the most part, piss away money. The net result is the same as a lessening of productivity & efficiency.

  18. When money is printed to allow for added value, the present value of money does not go down, as the added value is usually an increase in productivity, so the cost of things go down. With increases of productivity more people have more money to spend, and then demand drives prices up, as does increasing population. The dollar price of something goes up, but the value in higher also, so while a car has usually been an expensive item, today's car is a miracle compared to the Model T…more..

  19. Hi! Please do consider that humans are a resource, and private debt is backed by the expected resourcefullness of the humans who have entered into contract to repay during and when the fruits of their labor pay off, and even if there is no payoff, will have to repay from assets (if there are any, and often there are). Assuming success, then the value added requires more printing of money. Also increase in population, actually increase in size of economy requires the printing of money. more…

  20. If you look at a chart covering the US money supply and compare it to a chart of the household debt, both charts from 1950-2008, how interesting it is to see that they are virtually the same. If value creation would do the trick like you say, and balance the economy, the trends wouldn't look like this. To make it even a tiny bit worse, lets throw in the total Credit/Debt, that's $50 Trillion… Now, if Money equals Value, then why the hell do we have a debt of this size?

  21. I won't argue that we shouldn't spend money on defense, but I would consider 23% of the budget($856.5 billion) to be a considerable amount of money, but enough said about that. Inflation however, is a constant. Every single additional dollar pumped into the economy, steals value from the money already in circulation, if it creates value or not. That is because money isn't based on the value of resources, money is based on money, i.e DEBT.

  22. …and so is a pissing away of money, like the housing bust, which was like a social program. That pissed away money increases taxes without increasing the economy, so the dollar is worth less – a portion of it is pissed away. Thus a shortage of cash to spur the economy. The Fed & the US govt are 2 different things. The system works when the print is just right & value is created, and little pissed away. Entitlements should not grow if the economy is not growing – its a recipe for disaster.

  23. …we know that printing too much money causes inflation. But that only happens when the print is more than is needed by a normally functioning economy, like when failed states print money. The Fed has been backfilling the shortage of cash, which hasn't worked that well cuz successful businesses borrowed & then invested outside USA borders, fueling Asian boom. But pendulum is swinging & investment cash is leaving Asia for USA. Social programs paid for by gov borrowing do not create added value..

  24. …in the first place. Some loans go bad, & banks have to absorb that – in theory keeping them honest & diligent – and so banks can fail, and they do. When the bank-housing market tanked in 2005 due to too many liar-loans, when the added value was totally imaginary, some banks were bailed out – infused with cash – because without that the economy would have been short of cash & inflation would soar, and worse things would happen due to domino effect. Seems counterintuitive, cuz normally…

  25. Defense spending is not that big a part of USA budget, but people are OK with it cuz they want to be safe. Weakness invites aggression in this wonderful world of ours. When the Fed Res prints money it is loaned to the banks, which then loan it to individs & business, collecting with interest more than they lent out, and then they use most of that money to repay the Fed. Essentially the economy is put on a treadmill, making people work to create the added value to justify the printing …

  26. No… I believe we have to dive into the social programs, and figure out where the money is flowing… Funny thing is that many people don't seem to mind paying the vast amount of money spent on defense and the military…

  27. relate to a monetary economy, but I believe we need some sort of resource backing it, to slow down the inflation and make the system more stable. Considering the social programs, it's of course a shame about the parts of that, that doesn't work in one way or another, but what should we do? Cut them out? Everything is fine and dandy as long as people are healthy, but what if you get sick, and aren't able to work? Should you be kicked out on the curb because you didn't earn a lousy welfare pay?..

  28. it does inflate the currency. Real value creation is decoupled from the creation of money, so the more money there is, the more debt there is, even if we get a large number of new businesses, and thereby create real new value. Starting a new business usually requires fresh capital from the bank i.e more money made from debt is put into circulation. Every loan made by the bank is new money, whether it's a mortgage loan or a business loan. Of course, some debt is required as long as we—

  29. I realize that the population growth requires an increase in the money supply, but I also believe that what is our banking practice today, makes that increase larger than necessary, and thus inflate the currencies to the point where it's getting unhealthy for the general population. How inflation would soar without more money being printed, and how printing more deflates the currencies, I don't quite understand??? As long as we have a currency without any real resource backing it,

  30. yes, develope emerging markets! Splendid idea! And that is what is happening! It's not all bad out there, try to cheer up. throughout Africa & Asia the poor are switching from kerosene lamps to solar led/cfl lamps. In many cases the switch is initiated by a charity, whose funds come from the capitalist surplus, then migrated to free market, as with Sunny Money. Women in Bangladesh assemble solar lamps (for sale..capitalists) in their homes/shacks. 12 to 16 year old geeks in India write apps.

  31. Actually the rare earths for cell phones are not in short supply, however China has most of them and keeps most of them for use in products manufactured in China. When the price is high enough you can be sure engineers will come up with a work-around. No one really approves of waste, but today, me thinks you not up to date, as so much is recycled it's just wonderful. All autos & tires are recycled most places, ships are dismantled and smelted, and few metals make to the dump. ..more…

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