Forum Replies Created
Ending this with – < b > XxXx < / b > did not work for me again. The last time I edited the ‘b’ to ‘bold’ and was corrected. Next time I shall try ‘strong’ instead and then quit the attempt altogether. I recognise the exalted status possessed, by the by.
Oh! That Yves! I am not going to bother with an opinion of Yves Smith’s Naked Capitalism Salon and Bordello and the pseudo-intelligencia that self-pleasure there. Life is too short for that carry-on.
In reply # 21094 see paragraph 2, line 2 through line 4 above. The brackets were substituted – intentionally – since there was nothing to embolden in the example. No fair having personal editing angels.
So much for [b] [/b] theory. Embolden doesn’t work atall. (smirchie)
Would that be ‘strong’ instead?
@ The Greek One, reply # 21086
Spain also was exposed to such recalcitrance, obstinance from the troika at the beginning of the Crisis when Zapatero was PM in the socialist government of the time. It was obvious from the radical shift of policy that Spain was not going to receive support unless specific policies were put in place, diametrically opposed to socialist philosophy and practice. These destroyed Zapatero’s political career and directly led to his retirement from public service – at least he did not have to commit seppuku for his neoliberal political transgressions of being socialist.
At that point had Spain instituted capital controls, allowing capital to leave only <b>after the obligations to repay the principle and interest issuing from the credit cycle born from the presence of capital in an economic entity, are completed</b>. This condition lays at the very heart of failure of neoliberal theology and its political policy spawn. Capital not meeting this requirement is economically irresponsible capital, (rather it is capital used for economic extortion – rent has nothing to do with the income due this form of capital and should be clearly designated as such – extortion). The trail of devastation caused by such capital and its effects upon the economic process litter the tale of recent economic failures, from Japan, Asian Tiger economies, Russia, the PIIGS (+ France, GB, Netherlands etc. waiting in the wings for their introduction) – vulture capitalism at its finest.
The great fraud of neoliberal economic theology is the held belief – TINA – There Is No Alternative. There is. Some of it must be resurrected from the grave so thoughtfully dug by the neoliberal thought collective, some will have to be retrieved from the befogged and addled forrest of recent historical facts, reinterpreting their importance, some will have to come from synthesis and creative economic thinking, something that was lost when John Maynard Keynes was buried. Always beware of any who claim to have all the answers – that usually means there are no answers remaining for anybody else.
@ Raleigh reply # 21053
By God, I think you’re on to something there. Reduce wage cost to restore competition for prices, drive the income of labour into the ground of bare subsistence or even below. What needs do labourers have to be buying anything they might produce, leave that for their betters to take care of.
It is absolutely brilliant idea to open employment to children who can easily be paid the least for their time and effort. Absolutely brilliant to offer opportunity to the most compliant and dependent and least likely to object segment of the population. And you so generously broaden your considerations to the womenfolk as well, pure genius that, taking advantage of social hierarchy of female submission that is fundamentalist bedrock conditioning; another segment not so likely to upset the applecart of your economics.
And lastly but not leastly the awesomeness of allowing the importation of compliant labour paid as poorly as is possible to compete with all those who so foolishly want to earn enough to afford to have a family; raise, rear and educate their children to be socially productive adults – how utterly foolish that idea actually is.
But wait! what about the great alarm and pandemonium about the disappearance of the all too godly middle classes, the most sacred scarecrow measure of economic wellbeing? From whence did these good-folk come? Are not the most of them descended from those who labour? Who have had the opportunity to educate themselves and increase their productive economic value? It would be interesting to know, don’t you think, just how much this class actually owns, what fraction, of the means of production, of the productive resources employed in the economy. It is widely proclaimed the extent this class has ‘invested’ in equities representing ‘ownership’, but in reality, how much direction of those assets they truly have – direction of what is owned is the mark of actual ownership, not the suggestion of ownership such ‘equities’ carry.
Once the dynamic of equilibrium was central to the understanding of economic process, but those days are now long forgotten; disequilibrium is the order of the day, theology has replaced knowledgeability, and the order of the day is koyaanisqatsi, and no one seems to notice – or even care.
You bet. It’s like waking up and finding yourself in Franz Kafka’s “The Metamorphosis”, and the only way out is through “The Castle” for which one must face “The Trial”. The presumption of ending well becomes vanishingly small, but it will make some sort of good motion picture for the survivors at the Thunderdome.
Well that modification worked like highly buffed shite
@ The Greek One, reply # 20905
When one relies on “Kathimerini” for their information, they need to buy a truckload of <bold>Greek</bold> sea salt and …
there, fixed. No Charge
@ GeoLib, reply # 20826
I would not pretend to speak for TAE, but your question is a good one that should have a response. MMT is part of the heterodox cathedral of economic ideas, the other being the so-named neoliberal or orthodox edifice, a theology having roots going back to mercantilist perceptions dating from about the beginning of the modern era (~1500 A.D.). Historically Adam Smith’s “Wealth of Nations” began as a rational argument against obvious fallacies of mercantilism and began the heterodox economic tradition which passed through other (political-)economic observers e.g. Malthus, John Mill, Ricardo, John Stewart Mill, Jevons and Marshall with John Maynard Keynes as the latest master of heterodox economic philosophy. MMT grew out of the American academic (mis)interpretation of Keynesian economics (and great care must be taken to differentiate the American form from the original but that takes a thorough study of economic history). MMT is actually closer to the Keynesian original but carries some of the genetic markers of its American antecedents (IIRC Samuelson’s misunderstandings which led Samuelson into the orbit of neoliberal orthodoxy from the University of Chicago – free markets, invisible hands, etc., etc.). MMT provides economic pathways not available in the prevailing economic theology, for that is what now governs economic thought – beliefs and opinions only, reestablishing rational approaches to economic problems as was done by Keynes. MMT as it is now is incomplete but still offers a sounder economic outcome than that offered by the neoliberal orthodoxy. But it does require some real knowledge of economics to understand.
@ The Greek One, reply # 20798
Being a resident of Spain, the drama being enacted has immediate effect upon the economic climate in this country. Both main political parties seem paralysed with the fear of loss of power, neither have the intellectual resources to appear with either answer or policy programme to address the economic depression the country finds itself; make no mistake about using the word depression as related to the economic conditions, depression is what pertains. Whatever statistical information produced by the government should be taken as suspect – automatically. The austerity policy being applied assures few to none of the thirty percent unemployed will ever see another job nor the sixty percent of youth entering the labour market will ever have the where-with-all to form families of their own through their own labour. For those of middle age who have been without employment for more than two years, the future has ceased to exist, the stresses of maintaining families will eventually destroy those families given the conditions. So far, survival is depleting the resources available to the affected extended families, how much longer this drain can be maintained is the great question being lived here.
The rational approach in the face of unemployment is to sharply curtail the working age by enabling early retirement making jobs available to those entering the employment market, the cost of supporting retirement is far less than the loss of job skills and training for those entering and in the midst of their job careers and the social costs that their families pay through economic impoverishment and lack of opportunities. Poverty begets poverty, a cycle that must be halted with the greatest urgency. For those companies using employees, positive tax incentives can be provided to encourage increased hiring opportunities, as well as schemes for reduced working hours on sustainable wage rates and taking on additional workers. The efficiency of production that leaves a large percent of the population unemployed must bear the taxes on income not being paid by the unemployed. Those companies involved in labour arbitrage, the employment of external labour to profit from low labour costs must face significant fees for the importation of their goods to the home market, or ending their profits altogether. Foreign companies using underpaid labour to produce their stocks for sale must be required to surrender excessive profits gained from their exploitation of labour, or through price advantages gained thereby. Entrepreneurial profit is taxed at a rate to cover the external costs created by enterprises, labour wages are to be protected. A policy that reflects gently upon enterprises having little or no control over their markets and progressively more sternly as the enterprise captures market share to the point of severity as monopolistic share of market occurs. As long as inflation marks the growth in goods and services of the economy, the economy is being well served. Inflation of wages is not a problem under the condition that productivity matches that inflation, even price inflation as related to cost inflation for either wages or commodities used in the production of those goods. Inflation turns bitter when it is the result of market control unrelated to the effects of production, the economic power of monopoly over price and supply. Monopoly has very limited uses and should only be allowed under tightly controlled conditions and stringent limits upon profits, the economics of scale being one significant consideration amongst numerous others of meeting social needs. The ills of capitalism are multitudinous and require constant control if capitalism is to serve rather than become the master, but that follows for any social devise ever invented by the species. Each generation must learn these things anew. How good has our learning been? How well will we instruct our children of these matters?
Greece, still the tragedy after all these years, replaying for your edification and enjoyment – ‘How to get blood from turnips or squeeze the pips from the bankrupt’, staged in the most modern setting with the mode de jour, no extravagance unprovided for, no plot so twisted, no dialogue so circumscribed, no demand so banal and with the apex of heartlessness thrown in enhancing the performances of the creditors. What’s not to love?
The good Professor of constipation, leaving another particularly piquant pile of poo.
Since the commentary above has gone about three days without reply, no reply is likely at this point. I will observe several things; first of all would be the breech of normal human decorum in that when an effort to respond to some question is ignored, either out of ignorance or out of fear that ignorance is exposed; secondly this negligence may show the inability to engage in meaningful conversation with another for whatever cause; thirdly, such lack of response is likely to show in the course of discussion a closed mind or one captured by the persuasion of some agenda. Whatever. I will leave you to the tender mercies of the usual commentariat here who are for the most part promoting their private opinions with self-confirming shite they’ve found somewhere (never with contradictory information that they then successfully refute). Notice also these nom-de-blogers are without exception always telling the reader what to think, how to think or giving limits on thoughts you are allowed. Caveat emptor. You have asked some interesting questions in the commentariat and gotten a response, that effort shall not be taken again given the resultant silence; not that that effort had the answer you sought but might have led to information you had asked about or some better answer to your enquiries through dialogue. Che será será.
In case you might be interested in blatant disinformation and historical nonsense the link is difficult to top:
with the additional bonus that the actual historical record becomes contaminated with doubt by the publication of such drivel.
The OECD/INET video is outstanding. To think these Greeks are demonstrating exactly what political leadership should be; intelligent, informed, informative, imaginative, able to communicate ideas, assemble comprehensive plans, handle complexity, demonstrate competence and doing so with grace and integrity. I rather doubt the finmins of the G-20 could collectively hold a candle to Greek brilliance after a year of trying.
@ Raleigh reply # 20424
“Mainstream economics is largely hokum, and even the economists know this. I’m interested in finance, how it actually works, not what it says in the squeaky clean, idealized economic textbooks. …
That is highly arguable that what you refer to as mainstream economics actually is mainstream Historical economics. Your mainstream economics is also known as neoliberal economic theology – a set of beliefs none of which can be verified in reality, given premise of virgin markets (untested, unobserved), invisible hands (ròle played by some non-existant nothing there) and an etherial perfusion of perfectly shared knowledge amongst buyers and sellers. You’ve got to believe in the chocolate Easter bunny hiding coloured eggs as well.
What you are witness to is nothing economic, that being observed is an entirely financial construction, taking advantage of near absolute and total economic ignorance; just assess the offerings of the creatures commenting this post alone. In all time have any of them so much as moved their statement of opinion so much as an iota; more likely their opinions are comprised of cut and paste memorex e.g. the golden bollix, Professor lockedinLoad (constipation?), Trivial(whatever), and the rest of the zoo of ignorance usually taking up the site’s bandwidth. You are never going to get anything original or valid out of any of their opinions and if perchance like a stopped watch get something correct, rule b, caveat emptor needs be applied.
What you are witnessing is the financial interests cook and consume the goose that laid their huevos de oro. Disinformation and doubt comprise the diet you are fed so that you will never realize what the pot you’re swimming in is getting a lot hotter than is even now comfortable. That dazzling array of toys is only to amuse you until the lid goes on the pot, your borders are sealed not only from entry but exit as well. The corporate financiers who own you will not allow your travel without your acceptance of assault on your person, your rights are spoon fed you in minuscule dollops only when no advantage is provided, and everything you do or say is recorded for all time – Total Information Awareness. That system in place cannot endure but will outlast you by about a generation, books will disappear from public memory, any sign of intelligence will be berated into acquiescence or exile, excellence will bear the mark of Cain. As G. Carlin famously said – you are owned.
The only protection you may possibly have lay in the direction of knowledge, knowledge that is slowly being drained from public access as the failure to educate gathers momentum, as memory atrophies from constant abuse, disinformation and doubt engineered just for that purpose. Excellence is under assault, none dare have head above the parapets provided by the common herd. Only knowledge will provide the measure needed to accurately judge what you encounter or what you are told, facts remain no matter the direction of the gales that assault. Civilization is under attack and its defenders are in a drugged delirium, no Horatio is seen on the bridge to stay the financial hordes coming to plunder and rape. Interesting times …
@ Raleigh reply # 20445
Not an unexpected fact given labour arbitrage practiced as a financial imperative, it certainly is not an economic imperative. To access the Chinese labour resources, investment in capital resources (e.g. factories, materials and management) is required au priori; your fact reflects that ownership or effective ownership in conjunction with Chinese politically imposed ownership and control. Profits derived flow both to China as well as to their foreign corporate ‘guests’. Corporate accounting takes care of cloaking those flows which never seem to appear in credit to the corporate stockholders but bolster the numbers for upper management renumeration. The school of ledger-desmane – control of the books. That is the world as it is.
@ Raleigh reply #20422
What a brave one you are, going to Yves Smith’s Salon Naked Capitalism and Bordello. You can never tell what creatures will slither from beneath some rock there. It is one of my favourite places to not go to, they’ve brilliantly buffed turds floating in their punchbowl, caveat emptor their kool-aid.
Syriza only promised the Greek voters to negotiate with the troika from the position that the policies of austerity were unacceptable. Once it is uncontrovertibly shown by that troika or any comprising that troika that no negotiations will take place in an acceptable manner, and further that assistance is not forthcoming in any form until compliance to the will of the troika is guaranteed, to the point of collapse of the basic social currency (that one will really hurt and open eyes to the economic fraud being perpetrated upon the Greeks). Only then, once the Greek population has been ‘economically educated’ can a way be found for exit a defunct banking system and reestablishment of the country’s sovereign monetary authority. Not much politically will be effective until that river is crossed – just the way of the world that education always has its costs.
It strikes me as somewhat queer, the heaviest bloviators about EU and Greek status come from the other side of the Atlantic, surprisingly none of them can find their asses with two hands, a hand torch and illustrated, written directions. What on earth would the WSJ, NYT, WP or Bloomberg have knowledge of that would make them a resource for any factual matter. These are opinion pieces, nothing more. A waste of printers ink, space and a total waste of time. None is much fit for anything but lining a cat litter box. There has got to be something out there that is based upon sound economic theory, but perhaps that is a bridge too far after-all.
At the final BBC post:
An excellent book: Lesley Adkins, “Empires of the Plain, Henry Rawlinson and the Lost Languages of Babylon”, ISBN 0-00-712899-1 is biographical history of that period, giving a substantial narrative of the age, its peoples and its protagonists. Eminently readable.
@ Raúl Ilargi Meijer reply # 20003
Simple answer to correct question: The European Commission did not discover €2,000 millions. The Greek Finance Minister demanded the receipt of the monies. The German Finance turd absolutely refused. These were points happening in the last fortnight of reporting, here at TAE. Are memories becoming as truncated as the Yanks are? That €2,000 millions was overlooked by the Troika in their dissembling (look up the meaning). Remember the European Commission is comprised of the political Molls bought by the banksters. Einstein’s insanity paradigm applies. That €2,000 millions fund much needed relief is the only use it should be put. V. Nuland’s fabulous “Fuck the EU” is most appropriate in this case.
When Fidel Castro had first overcome the Batista government in Cuba, he was invited to Washington for discussions by John Foster Dulles (accompanied by the brother Allan) to meet the joint House and Senate Foreign Relations Committees behind closed doors. Midway through the expected meeting, Fidel exited the chambers and with his entourage immediately embarked for Cuba. Within a month, Castro made a call to Moscow and penned a treaty there. The rest is history. What has since been revealed about the Dulles Brothers leaves little doubt that strong-arm, mafioso tactics were applied behind those closed doors (Historians should try to get Fidel Castro’s remembrances of those times for posterity).
Somehow, Merkel and the past use by dated Finance Minister Wolfgang Schäuble need to study their history a bit closer; it may not repeat but it sure could rhyme. Have either of these German *sparks* ever thought of two important factors that will doubtlessly affect German wellbeing: first, the Turkey/Greek gas supply pipeline, the rent for transiting Greece could be very very dear; and second, Greece had (possibly very past tense) been vital to NATO’s front against the old Soviet Union, but has an abundance of deep water ports that could easily be leased to friendly forces. I suspect much of the Greek national budget and debt payments could be easily paid by NATO for avoiding those considerations. In all, Greek geography provides some nice cards to be holding. The Germans need to rethink their austerity and the genetic obstinacy they politically rely on before it is too late (retire that brain deceased Schäuble on a good pension, it will pay in the short run).March 14, 2015 at 9:44 am in reply to: The American Story Is A Mystery Only to Economists #19831
Maybe the thesis should be the possible reason the collapse in petrol prices is not showing up in increased spending is because petrol is being bought with debt rather than income, or some factor resembling debt. Debt is just another form of asset as long as debt is being serviced, that is being returned with the agreed interest that covers the cost of not using someone’s savings by that person and the risk factor that those savings are lost either in part or in whole in the utility those savings represent.
But this would require a story that is not being told, a story missed by mythology except in small pieces scattered over that terrain of presentation of a world view, how the world works. Myths are only a way of teaching, of presenting experience, of explaining complex concepts, of establishing coherency. Real myths are reality based; fantasy also uses myths to stimulate the imagination, sometimes fantasy can better reflect some aspects of nature with less distortion than any other way, more often though, not; the danger being confounding the two forms.
Beliefs, when not employed in stating incomplete knowledge, are nothing but fantasy. Beliefs are like banners in the wind, showing the direction of that wind and are as fickle as the wind’s orientation is wont to be and only indicating the strength of the wind at only the place the banner is, no where else is exactly the same. All too often beliefs are taken to be measure of qualities measured by other means, like measuring girth by scale, many an erroneous results pursue the assumptions needed.
Stories too are prone to the caprice of telling and the vagaries of ear of the listener. One such story, about a princess who needed some gold for a long weekend in Ibiza since Margate was becoming all too familiar a getaway place. Her father, the King was saving up for a new castle and couldn’t spare anything just then. The princess had heard about a smallish (that is instead of dwarf to calm the PC crowd) who spun gold out of straw and would do so if any could guess its name. The princess thought long and hard and then some more. Finally she had her answer.
and had enough to take her friends to Marbella instead. Finis.
(the above is in recompense for abusing the bandwidth a few posts ago)
@ Professorlocknload, reply #19795
I do so double dare you to use either Grandma or Granny over at Naked Capitalism (see commentary, look for *Ian* and following mêlée)
The Madam des Salon might enjoy the additional traffic (take this at multiple levels, SVP). [Spoiler alert] Seems the Madam and Salon conflate an endearing term with ad hominem to lynch mob fever; quite the rational free zone created, you would likely enjoy the splendid spectacle of equating a *granny* to some imagined ad hominem e.g.:
Janet Yellen, a surviving crone from Burnham Wood, decapitated by a shard breaking through a glass ceiling, replaced by small albino pumpkin (de seeded) with matching white wig, vacuous, without the where-with-all to coherently assemble a simple two word reply to a yes or no question.
(sorry for the self quote of what was at hand, in mind)
If the dollar is strengthening as reported, and the €uro buys fewer dollars (and cents), could it be that both currencies are in free-fall? Against that the dollar buys more ¥en, go figure.
I don’t see much change in €uro prices (except petrol slightly less) and haven’t experienced the movements of dollar prices (inflation being reported at marginal rates). Is this a marker for a universe where down is up; night is day; war is peace and poverty is wealth? Or is someone off their meds in the media?
An interesting post from Zero Hedge.
Nice to know someone still remembers their economic history.
@ phil harris
Rest easy, The Guardian has been for some time a moll of the lads from Threadneedle Street. Only recently has she discovered that it pays to advertise. Find The Guardian now in her finest knickers across the street from BBC trying to attract their Johnnies. The idea there is actual reporting out of London went with Edward R. Murrow and the second world war’s blitz.
We’re drowning in nonsense here, and we’re prepared to just die without even trying to swim?
Fat floats – may explain the obesity as well as isolating cerebral neurons from contact needed for the thinking process.
What is not is the two portraits of US girl power in Ukraine from the Guardian and Bloomberg that appeared over the past two days. That’s not innocent, that’s vile and bastardly lies. Victoria Nuland and Natalie Jaresko should not be praised by the western media, they should be taken apart bone by bone, because the roles they play are far too shady to stand up to our alleged democratic principles.
That is called professional courtesy, what one professional will do for another, the respect of status for status. Not one, from the black non-entity peace prizer in the White House; VP Joe Biden and fils; Hillary and Chuckles Clinton; the Vapid SOS John Kerry and her Victoria Nuland (and the thing Natalie Jaresko above); not to mention their supporting cast inhabiting the troika, NATO, and the lot in Brissels; are not professional prostitutes, it’s the only thing they know to do, don’t expect sow’s ears to become silk purses. Same goes for their portapotty (portaloo) press retinue. What’s not to love?
Somehow the cri de cœur is being heard in the wilderness, the answer may come in silent whisperings from that wilderness if one listens well enough. No answers are to be found in the brazen trumpeting of power, neither guidance from its echos nor ephemeral succor from its din.
Most do not consider the enormity of the accomplishment of changing currencies for daily needs. The Euro not only did that but was transnational in its scope as well as being fully accepted by the populations affected, some easily and immediately and others having slower rates of acceptance, none now would know how to return to their former currency without grave dislocations. Greece would be no different, the Euro is now part and parcel of being Greek, of being Eurozone European, very few would willingly change that now established fact. These things are compounded by the problem that economic change requires the parties to negotiate together to accomplish desired goals, one party, taking after U.S. Republicans, have lost any ability to negotiate (That’s you Angela M’s finance minister, a rather forgettable personage) or even acknowledge disagreement. Although modern expectations of politicians is whenever lips are moving to expect hollow promise or misrepresentations, moving lips are also required to negotiate, something the German contingent of the EMU has either forgotten or has yet to learn – but there is hope yet – maybe.
@ reply 19568
right on the spot, 30 February. Can’t beat that for punctual.
@ reply 19540
Can we make that day 30th of February? please! please!
Perusing all the usual MSM suspects (BBC, The Guardian, The Independent, etc.) this morning and shoveling off their propaganda it is clear that the troika has given orders there will be no negotiation whatsoever with the genuinely elected Greek government. The stench of propaganda from the usual MSM suspects is high and may require breathing apparatus to wade through their shite but then that is true about most of today’s major reports – Russia, Ukraine, ISIS, Syria, Liberia, Egypt, France, Denmark and Fascist Israel, all toilet paper reporting for which many trees are liquidated daily. The gyre widens, the centre is terminally cancerous with corruption and a darkened visage shadows the land.
But then that shining light of the beautiful people Victoria Nu(t)land so imaginatively voiced the position – “Fu*k the EU”. I’d lay money on ‘it will happen’; cannot be soon enough. The chasm betwixt the population and their ersatz rulers grown ever wider; except maybe in Greece.
@ TheGreekOne, reply # 19110
Concerning the lack of currency you mention, an immediate step to alleviate that problem is by issuing a stamped script good for a short period and capable of refreshing with a stamp costing maybe 0.1 % or even 0.01 % for a subsequent (continuous) period renewal. The script would be issued directly to social welfare aid recipients, pensioners, the unemployed, young families, the handicaped and all students. The script should purchase all but luxury goods and all services required. The stamp scheme assures the script is used within a given time period, the continuous stamp renewal keeps the currency value current, reduces hoarding and also provides a revenue to cover administrative costs, possibly a stream of governmental revenue, etc. Such script can transition between printed euro currency and a more permanent Greek issued currency. No one should starve because of the obstinate idiot retards of the troika.
@ Geo-whatever, reply # 19088
Go on and finish the lollipop, I left it there because I did not want it after it fell into the yellow snow.
@ Raúl Ilargi Meijer, reply # 19084
Armed as TPTB are, that may be the optimal position to take. And since these institutions have lost the run of themselves, they become vulnerable, not only to a growing failure of public support but also to the ability to self correct. That combination of factors become the cancer that ends empires; it only takes a little patience, wisdom and courage (none of which is controlled by a monopoly), a widespread withdrawal of consent has earthshaking power.
@ Geo-whatever, reply # 19036
Return to whatever you do best, godspeed. Since you cannot respond without Youtube crutches to speak for yourself maybe trolling is the better answer after-all. It is a shame that you appear incapable of a rational discussion, but that has become the mark of the times. Don’t let the Youtube hit you on the backside as you leave.
@ V. Arnold, reply # 19061
The current IMF, WB and WTO are not your grandfather’s IMF, WB and WTO. Your grandfather who instigated those organizations would not recognise those institutions as they presently are. The change came as a result of opening the use of credit from strictly a source of economic production to that of amplifying consumption – look at the period when credit cards first came into widespread use, about mid to late nineteen-sixties. This opening of credit for consumption was not alloyed with a corresponding requirement to service the debts credit created. The miasma of that debt so created has not since cleared. That same scheme was applied to the IMF, WB and WTO by administrators installed by those under the influence of neoliberal thought collective mindset, who replaced the New Deal originators. The Nixon administration politicised not only the administration of jurisprudence but initiated the politicisation of the monetary/financial system as well. Both were necessary to begin the disassembly of the New Deal institutions and constraints on business. The Reagan administration marked the takeover coup by acolytes of neoliberal theology.
The probability of the European Monetary Union surviving the Greek challenge is becoming vanishingly small given the obduracy of the vested interests involved. The EMU edifice, fragile in its concept, will be in full disarray as the crisis moves to the other PIIGS and possibly France as well (PFIIGS?). By austerity they ruled, by austerity they fail. It will be fun to watch Turkey put their gas terminal on the Greek border, and Piraeus will make a fine warm-water port for the Russian Navy to occupy. Two of the find hand of cards dealt the new Greek administration. Not to overlook the milch cow that remaining in NATO could turn into.
@ Chris M, reply #19010
Henry George made a place for himself in economics is true, but it was a cul-de-sac in historical economics, a flash-in-the-pan, a once-off and unrepeatable, fit only for the conditions as they existed at that moment in political history. Many of H. Georges ideas were incorporated into state constitutions throughout the region those populists maintained political suzerainty, many times now disabling state and local governments to address economic ills otherwise within their capacity to resolve. Most of the problems in (The Lord of the Fly)-over regions can be traced back to H. George’s theorems and the limitations inherent. To illustrate examples requires there be not only a functioning idea about economics but also a common language having agreed definitions and understandings, for example ‘wealth’, what is wealth? How does that relate to ‘rich’? What is the source of ‘wealth’? What about ‘land’, ‘labour’, ‘capital’ or ‘entrepreneur’? I doubt there would be any two readers here that have or would agree on anything in common about any of those questions. Hell, I will not agree to respond to or dialogue ‘Youtube’ in lieu of a sentient person, I refuse to even consider watching such second hand, found opinions of recorded images that some unoriginal soul thinks they agree with and uses to speak for themselves.
As you can see, whatever may be suggested as a response is effectively useless until some form of commonality of theory and lingual usage is established. Under that condition, one of the significant warnings of economic irrelevance as proposed by Geo-whatever was land being sole source needed to base tax revenues on. That is a most preposterous proposition to take. Nothing else there holds up well either, but it is a bright glistery thing found by a sophomoric mind, a pedlar of tattered theories pressed and folded to look as new. Caveat emptor.
My-oh-my, another bright glittery thing. A thing that solves ALL problems. Except having an educated, well-informed knowledge of economics. Have at it …
Might it be nothing but an opinion that the Greek finance minister’s position is anything like Geo-whatever says it is? That is information I certainly don’t have about the Greek finance minister’s state of mind. George attempted to address conditions of his age but that does not make them relevant now.