ECONOMY: Capitalcomunismo and pluteodemocrazia
(Note from the markets of 6.4)
The recent extraordinary measures taken by monetary authorities and policies to avoid the immediate implosion of the financial system, they will delay the Great Depression, but the high price of even greater damage to the real economy and monetary system. I am a disaster in the disaster. Instead of recognizing the mistakes that led to the current disaster, continuing to repeat them with even greater force, it is mathematically ensures the future of disaster, because it is huge cumulerà at present.
The focus is for the Fed and Washington remains strong at all costs, real estate, the stock exchange, and typically inflated prices of assets, the order to keep the excess consumption of a service-driven economy, clearly on the bubble. It is believed that saving outrageously (and illegal) finance discredited, it will generate enough new loans to avoid the Great Depression. To this end hyperinflation and occurs not only bring into action the Fed's printing facilities, but it outsources printing to various Fannie, Freddie, FHLB, the banking system in general: all these can now issue "money", that is, debts the implicit government guarantee.
Its strategy now clearly emerged, is in fact discredited nationalize the finance on Wall Street: desperate and illegal, will probably stop in the short term, the financial implosion. But the problem with this strategy is that you pour an even larger amount of debt, sponsored by the government, on the shoulders of fragile structures largely dependent on mortgage lending ipotecari.Il disaster we've seen recently occurred because it was unbearable debt structure based on a Ponzi scheme (I pay off debts by new debt), which by definition requires a continuous and increasing amounts of speculative credit: the day when it has just decelerated, the collapse was inevitable. And that day could not arrive because the underlying property does not have the capacity to generate the repayment of debts, ad infinitum, it could go on until there was a willingness to take on new loans to repay those amounts to the mountain pre-existing, that has been accumulating to the point of rupture, such availability could only be based on the mirage of ever-increasing house prices. But it was obvious to observers for some time rational, because prices can not rise indefinitely, as soon as they started to decline would be dragged all over the finance Build.
Well now the authorities are trying at all costs to restart the mechanism. Instead, the last thing the system needs now there are trillions of new mortgage debt, though obviously a bit 'will support the consumption of services in bubble economy (because it consumes more than it produces). E 'disappointing not to hear a single word, the mass of statements and analysis revolving around the crisis, which focuses on the single biggest problem of the stars and stripes, which is also the problem throughout the world: that an intrinsic economic structure based on services, with over-consumption, and propped up by real estate and finance, namely that generates excessive force due respect to the collateral available and the ability to create economic wealth. For a while, 'it seems an "economic miracle" then inevitably reveals itself for what it is to live beyond their means, leaving behind an extremely fragile, both economically and financially.
remember that economic theory, in a free market (ie perfect competition and absence of political constraints on supply and demand of all goods and services starting with the money), provided that in such cases, that excess consumption and hence the external deficit, a balance would be generated automatically, via currency devaluation and rising interest rates and falling stock market, which would have curbed consumption and increased exports. But in a context of free market, planning to Central (where exchange rates and interest rates are set at the table without taking account of supply and demand) not only can check the balance, but it produces a sustainable and growing imbalance. This is because the recycling of dollars from foreign creditors, and especially necessary to prevent the devaluation causes abnormally low interest rates (the famous "conundrum"), which fuel inflation and the exchange of assets, maintaining a level of excessive consumption.
E 'here the heart of the disaster but until the financial alchemy is able to create enough "money" to support the imbalance, and the rest of the world agrees to accumulate debts in dollars, you can pretend nothing happened, as has been done so far, and as you try to do for the foreseeable future. Honesty and rationality instead impose-now that you should no longer pretend-to recognize the heart of the problem and accept the inevitable care, scaling down the standard of living, to avoid a disaster in ever larger with futuro.Invece the scandalous coverage of the state to be in debt, both mortgage and financial resources in general, you continue to delay the problem, but so is sneaking a mortal blow to confidence in the dollar, already severely flawed. The reality, in fact, is that the massive flow of new credit needed to sustain the current external deficit, and the outflow of dollars that it brings, will be shown (as already shown), only even more destabilizing for markets and the real economy for all the globe terracqueo.Mettere a state guarantee (to boot to a state already projected to bankruptcy) behind the private debts, can not replace a healthy economic structure. And the current U.S. economic structure fails to produce what is necessary to meet the domestic needs and generate sufficient exports to compensate for imported goods and energy resources, in turn, generated by 'over-consumption. The current economy of services "is not enough for this purpose. As seen from the employment data on Friday, the manufacturing jobs lost in March was 93,000, which add up to 92,000 in February and 69,000 in January, for a total of 254,000 in the first quarter of 2008 in Meanwhile, school, health, restaurants and bars, have increased their staff of 178 000 units (first quarter) is more than obvious that the U.S. needs to consume less and produce more. Specifically, they need to create much less non-productive credit (especially mortgage and asset-based "), and allocate resources, beginning with the workers, from bars to factories. Of this debate should be under the lash the financial crisis. Instead, the general satisfaction, we discuss only the tricks (such as accounting relaunched this week, to highlight the costs borne by the assets of distressed banks' balance sheets), the cumbersome new regulations, and how to charge the costs to citizens without noticing.
The alchemists therefore continue to go for more. And the greatest alchemy is to transform gradually the West by a capitalist economic system and democratic political system in an economically and politically capitalcomunista pluteodemocratico. I would point out that capitalism is based on private ownership of profits and losses arising from economic activity, with the financial support of the latter, while communism is based on common ownership of profits and losses arising from economic and finanziaria.Ebbene today we can see a mixed system, based on the properties' PRIVATE OWNERSHIP OF PROFITS and 'COMMON losses arising from financing in the meantime become prevalent than economic. It 's the CAPITALCOMUNISMO, which is matched by a political system where command God and mammon, money and religion (pluteocrazia), giving the illusion of the people "decide" through formal elections (democracy), illusion, because the choice is always between the pre-packaged option pluteocrati (can not realistically compete in the elections who does not have substantial capital or powerful religious movements). It 's the PLUTEODEMOCRAZIA.Potrebbe not be anything wrong. Too bad it is now clear: Capitalcomunismo pluteodemocrazia + = destruction of the planet. And this for a reason: because in a system like the greed of those in charge did not counter, and becomes a slave to the continued growth and unlimited, in clear contradiction with the environment, the globe, unfortunately limited.
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