Is It Socialism or Just Failure?
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Harris&Ewing House-Capitol tunnel, Washington, DC Feb 3 1939 It’s all still about Greece, and that makes sense, if nothing else Syriza is a breath if
[See the full post at: Is It Socialism or Just Failure?]Syriza is looking out for those who financed it’s campaign, not those who voted for it.
But then, in the beginning, populists always seem so egalitarian, don’t they.
Not a good day for Syriza. Greek govt is backing away (for now) from demanding debt writedowns. I wonder if supporters of Syriza think it can be 2007 again. If they do, they shouldn’t.
“Western leaders have so far chosen to protect money and banks, instead of people and their wellbeing, and that’s why we find ourselves where we do.”
To call them leaders, is to give them too much credit. They are not leaders. They follow the wishes of the elites. True leaders look out for the wellbeing of their countrymen. They have courage. We generally don’t have leaders in the west.
“Choosing money before people can only end in the demise of the system that makes such a choice. That, however, is apparently terribly hard to comprehend.”
Comprehension is something we don’t do very well in the west either. Today I happened to run across a copy of USA Today when I was in the lobby of a hotel. Now, I have to admit, I don’t know how many people actually read that publication, but something caught my eye on the front page. There was an article by Trish Regan of Bloomberg Television.(https://www.usatoday.com/story/money/columnist/2015/02/02/oil-price-stocks-economy-consumer-gas-prices/22584385/) Here is something Trish “says”:
“Enough, already. Has everyone forgotten that consumers represent nearly 70% of the entire U.S. economy?
Apparently, many have.
So here’s a primer: Lower oil means lower prices at the gas pumps, which means more money in consumers’ pockets. Yes, the same consumers’ pockets that fuel our U.S. economy.”
To me, the ignorance of this statement is staggering. It is a misnomer to say consumers “fuel” the economy. Demand is created by supply if the supply is priced at par in the first place. At less than parity the income needed to consume the production is not created. Supply without effective demand cannot be consumed.
In perhaps simpler terms, if oil is priced below the cost of production, there isn’t the money created to consume it. Unless…..unless….we create the money by monetizing debt. Thus our problem, is it not?
The ignorance of our public is astounding. The reason we have such journalism, is that the public is easily fooled.
I am reminded of a passage of scripture (Hosea 4:6) “My people are destroyed for lack of knowledge.”
Ilargi, you are right. We have a failed capitalist system. As I look at what is happening in Greece and Europe, I often wonder when change will come here, in the USA. I am tempted to think that things just haven’t gotten bad enough. As you say, we have mastered the ability to put a veneer over things and pacify the public.
Yet, I think when things get bad enough, a leader will arise. But who will he or she be? Will he or she have a heart for the people?
Syriza needs time to find wider support from the other peripheral countries. They have two choices. They can use the 30 day playbook or they can use the 150 day playbook.
If they engage in brinksmanship too soon, they risk loss of ECB support at the end of February. If they can get past the end of February, the next looming deadline will be in June.
They need to drag this out. Yanis is a great spokesman. Come March 1 I would rather see him making impassioned speeches to his fellow Europeans rather than scambling to impose capital controls and hastily roll out the new dranchma.
I have been studying computational chaos for about a year now. Looking to see how this effects the markets. I think what is going on with bailouts causes a different problem.
To explain how this fits a short bit of history. Computational chaos is under the field of fluid dynamics. Leonardo da Vinci ran an experiment. He build a stream added a rock. At a low flow everything stayed at a steady state. Up the flow and after the rock a vortex appeared. Even greater flow and the vortex moves further away from the rock. When a larger flow occurs the vortex jumps from between the two states. Infact a greater flow creates four states the next jump is to 8.
Increases will cause mutliple vortexes and double of the previous state. Further confusing the issues is if a vortex tries to form before the old has ceased. In this cause the old vortex influence the position of the next.
What does this have to do with Greece and bailouts? Bailouts are like increasing the flow of water. The vortexes are like price discovery.
Its not an issue of socialism its an issue that nothing is going to work. Further aid destablizes prices. Look at oil. I read an article that oil has stabalized at $50 but the next day its at $45. Then there is an article that oil will bottom out at $40 and the next day oil is at $48. Its a jumping vortex with multiple stable states.
All of the best of math can’t predict the position of the vortexes. They can predict states that are attracted and repulsed. No one can predict the timing though of a change.
The new norm is that rather than QE not having an effect its the opposite. QE has an ever increasing destabilizing effect. Ironic the very thing present to cause the solution causes the problem.
“Yet, I think when things get bad enough, a leader will arise. But who will he or she be? Will he or she have a heart for the people?”
If history is any guide we will not be very lucky. The potential leader is likely to be a sociopath-or worse. That’s why we may all rue the change we advocate for. It could easily get even more Fascist than now.
Hotrod – I think the current leaders are already sociopaths and, yes, I think it will get more fascist as time goes on.
William – “What does this have to do with Greece and bailouts? Bailouts are like increasing the flow of water. The vortexes are like price discovery.” Really good description! I think you are bang on!
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