Jun 162021
 
 June 16, 2021  Posted by at 12:54 pm Finance Tagged with: , , , , , , , ,  11 Responses »


Nikolay Dubovsky Became Silent 1890

 

 

Ivan Illich (1926-2002) was a Austrian priest and philosopher who used the term “institutionalization” to describe what happens in several fields of knowledge, when these fields are monopolized by a subset of that knowledge. For instance, he saw schools and universities claim a monopoly on education, and doctors and hospitals (medicine) claim a monopoly on health care.

This is both utter nonsense and at the same time widely accepted. In reality, your education comes from everywhere around you, family, friends etc., and schools can merely add a layer to it. While medicine is sick care, not health care: it fails almost entirely in preventing your health from deteriorating (see the food most people eat) and focuses only on “curing” you once you’re already sick. Case in point: covid patients are left to their own “devices”, and no prophylactics are used until it’s time for a respirator. It’s a dangerous monopoly. But people accept it as some god-given truth.

Someone linked to a 2020 piece on Illich recently by David Cayley -see below-, and though it’s good -albeit very long- I think we can do better than that, in light of what Illich’s words mean in our current predicament. Illich said the monopoly claims in various fields would lead to “counterproductivity”, aka diminishing returns, indicating that at some point not only do additional steps no longer lead to progress, they cause regression.

This is very much what we see today when people like Anthony Fauci, politicians across the globe, Big Pharma, the MSM, talk about “The Science”, and don’t you dare question it, because they have the monopoly on it. There is one truth only, and it consists of facemasks, lockdowns and very poorly tested vaccines, and anyone questioning that is a danger to the entirety of mankind.

The reality is we can’t afford not to ask questions, and we can’t afford to stifle questions and dissent. We need every voice. The efficacy of masks and lockdowns is shaky at best, look around you, and so is the efficacy of the vaccines, while the latter raise many new questions about blood clots, heart inflammation, spike proteins accumulating in ovaries and testes etc etc. We’d be crazy not to ask questions.

 

In terms of Illich terminology, the concept of “The Science”, which cannot be questioned, means we have reached institutionalization on steroids, runaway institutionalization. And given the variety of severe adverse reactions to the vaccines, including 1000s of deaths, we also appear to have reached diminishing returns on steroids; in children, for instance, the vaccines appear much more dangerous than the virus they are supposed to fight.

While at the same time, “The Science” monopoly rejects any and all other approaches, vitamin D, ivermectin, HCQ etc. They do that because there are still laws and protocols in place that date from before “The Science”, and spell out procedures that have to be followed to get a novel approach, or drug, approved or even authorized. One of which is that if there is any other effective method for the purpose the vaccines are developed for, there can be no approval.

And that leads to regression in medicine. It also leads to media bans, scientists who are “cancelled”, the works. There is no logical reason to ban certain medicines, and use only certain -new- others. Well, other than money, that is. It would better for mankind to try everything we can, but not for The Science, which revels in its monopoly. And Ivan Illich saw all that coming.

 

Meanwhile, the list of very competent medical professionals who are getting banned, deleted, ostracized, keeps growing. There’s Kary Mullis, the inventor of the PCR test, who said before his death in 2019 that it was unfit for the purpose it’s presently used for. There’s Robert Malone, one of the inventors of mRNA vaccines, who’s very critical of how these are used today and recently said: “What happens to confidence in public health and USG if ivermectin turns out to be safe and effective for COVID, and the genetic vaccines turn out to have significant safety issues? This looks like a very plausible scenario from where I sit.”

Then we have former Pfizer Chief Scientific Officer Michael Yeadon, who said about mRNA vaccines: “There is something very, very bad happening and if you don’t pay attention, you will soon lose any chance to do anything about it. And don’t say you weren’t warned.” as well as “I’d pay a vaccinated person to shop for me before getting vaccinated myself.” We have Nobel Prize virologist Luc Montagnier, we have Roger Hodkinson, and of course FLCCC member Pierre Kory, a fierce advocate for ivermectin. And Peter McCullough:

https://twitter.com/i/status/1404716387247996928

Take all of them together, and I’m sure I forget a few, and you start to realize how insane it is that these people are banned from the discussions and policy decisions. All that expertise that is discarded in favor of a few opinions, it can not be a positive thing. And it’s not science, either: science requires constant questioning and discussion. Yeadon: “There is something very, very bad happening and if you don’t pay attention, you will soon lose any chance to do anything about it.”

 

Here’s from David Cayley’s April 2020 piece on Ivan Illich:

Questions About the Current Pandemic From the Point of View of Ivan Illich

At the beginning of his 1973 book Tools of Conviviality, Illich described what he thought was the typical course of development followed by contemporary institutions, using medicine as his example. Medicine, he said, had gone through “two watersheds.” The first had been crossed in the early years of the 20th century when medical treatments became demonstrably effective and benefits generally began to exceed harms. For many medical historians this is the only relevant marker – from this point on progress will proceed indefinitely, and, though there may be diminishing returns, there will be no point, in principle, at which progress will stop. This was not the case for Illich. He hypothesized a second watershed, which he thought was already being crossed and even exceeded around the time he was writing.

Beyond this second watershed, he supposed, what he called counterproductivity would set in – medical intervention would begin to defeat its own objects, generating more harm than good. This, he argued, was characteristic of any institution, good or service – a point could be identified at which there was enough of it and, after which, there would be too much. Tools for Conviviality, was an attempt to identify these “natural scales” – the only such general and programmatic search for a philosophy of technology that Illich undertook.

Two years later in Medical Nemesis – later renamed, in its final and most comprehensive edition, Limits to Medicine – Illich tried to lay out in detail the goods and the harms that medicine does. He was generally favourable to the large-scale innovations in public health that have given us good food, safe water, clean air, sewage disposal etc. He also praised efforts then underway in China and Chile to establish a basic medical toolkit and pharmacopeia that would be available and affordable for all citizens, rather than allowing medicine to develop luxury goods that would remain forever out of reach of the majority.

But the main point of his book was to identify and describe the counterproductive effects that he felt were becoming evident as medicine crossed its second watershed. He spoke of these fall-outs from too much medicine as iatrogenesis, and addressed them under three headings: clinical, social and cultural. The first everyone, by now, understands – you get the wrong diagnosis, the wrong drug, the wrong operation, you get sick in hospital etc. This collateral damage is not trivial. An article in the Canadian magazine The Walrus – Rachel Giese, “The Errors of Their Ways, April 2012 – estimated 7.5% of the Canadians admitted to hospitals every year suffer at least one “adverse event” and 24,000 die as a result of medical mistakes. Around the same time, Ralph Nader, writing in Harper’s Magazine, suggested that the number of people in the United States who die annually as a result of preventable medical errors is around 400,000. This is an impressive number, even if exaggerated – Nader’s estimate is twice as high per capita as The Walrus’s – but this accidental harm was not, by any means, Illich’s focus.

What really concerned him was the way in which excessive medical treatment weakens basic social and cultural aptitudes. An instance of what he called social iatrogenesis is the way in which the art of medicine, in which the physician acts as healer, witness, and counsellor, tends to give way to the science of medicine, in which the doctor, as a scientist, must, by definition, treat his or her patient as an experimental subject and not as a unique case. And, finally, there was the ultimate injury that medicine inflicts: cultural iatrogenesis. This occurs, Illich said, when cultural abilities, built up and passed on over many generations, are first undermined and then, gradually, replaced altogether. These abilities include, above all, the willingness to suffer and bear one’s own reality, and the capacity to die one’s own death.

The art of suffering was being overshadowed, he argued, by the expectation that all suffering can and should be immediately relieved – an attitude which doesn’t, in fact, end suffering but rather renders it meaningless, making it merely an anomaly or technical miscarriage. And death, finally, was being transformed from an intimate, personal act – something each one can do – into a meaningless defeat – a mere cessation of treatment or “pulling the plug,” as is sometimes heartlessly said. Behind Illich’s arguments lay a traditional Christian attitude. He affirmed that suffering and death are inherent in the human condition – they are part of what defines this condition. And he argued that the loss of this condition would involve a catastrophic rupture both with our past and with our own creatureliness. To mitigate and ameliorate the human condition was good, he said. To lose it altogether was a catastrophe because we can only know God as creatures – i.e. created or given beings – not as gods who have taken charge of our own destiny.

Medical Nemesis is a book about professional power – a point on which it’s worth dwelling for a moment in view of the extraordinary powers that are currently being asserted in the name of public health. According to Illich, contemporary medicine, at all times, exercises political power, though this character may be hidden by the claim that all that is being asserted is care. In the province of Ontario where I live, “health care” currently gobbles up more than 40% of the government’s budget, which should make the point clearly enough. But this everyday power, great as it is, can be further expanded by what Illich calls “the ritualization of crisis.” This confers on medicine “a license that usually only the military can claim.” He continues:

Under the stress of crisis, the professional who is believed to be in command can easily presume immunity from the ordinary rules of justice and decency. He who is assigned control over death ceases to be an ordinary human…Because they form a charmed borderland not quite of this world, the time-span and the community space claimed by the medical enterprise are as sacred as their religious and military counterparts. In a footnote to this passage Illich adds that “he who successfully claims power in an emergency suspends and can destroy rational evaluation. The insistence of the physician on his exclusive capacity to evaluate and solve individual crises moves him symbolically into the neighborhood of the White House.” There is a striking parallel here with the German jurist Carl Schmitt’s claim in his Political Theology that the hallmark of true sovereignty is the power to “decide on the exception.”

Schmitt’s point is that sovereignty stands above law because in an emergency the sovereign can suspend the law – declare an exception – and rule in its place as the very source of law. This is precisely the power that Illich says the physician “claims…in an emergency.” Exceptional circumstances make him/her “immune” to the “ordinary rules” and able to make new ones as the case dictates. But there is an interesting and, to me, telling difference between Schmitt and Illich. Schmitt is transfixed by what he calls “the political.” Illich notices that much of what Schmitt calls sovereignty has escaped, or been usurped from the political realm and reinvested in various professional hegemonies.

 

 

 

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Mar 242015
 
 March 24, 2015  Posted by at 10:02 am Finance Tagged with: , , , , , , ,  9 Responses »


William Henry Jackson Tamasopo River Canyon, San Luis Potosi, Mexico 1890

About a month ago, Japan’s giant GPIF pension fund announced it had started doing in Q4 2014, what PM Abe had long asked it to: shift a large(r) portion of its investment portfolio from bonds to stocks. No more safe assets for the world’s largest pension fund, or a lot less at least, but risky ones. For Abe this promises the advantage of an economy that looks healthier than it actually is, while for the fund it means that the returns on its investments could be higher than if it stuck to safe assets. Not a word about the dangers, not a word about why pensions funds were, for about as long as they’ve been in existence, obliged by law to only hold AAA assets. This is from February 27:

Japan’s GPIF Buys More Stocks Than Expected In Q4; Slashes JGBs

Japan’s trillion-dollar public pension fund bought nearly $15 billion worth of domestic shares in the fourth quarter, more than expected, while slashing its Japanese government bond holdings as Prime Minister Shinzo Abe prods the nation to take more risks to spur economic growth. The bullishness toward Japanese equities by the Government Pension Investment Fund, the world’s biggest pension fund, boosted hopes in the Tokyo market that stocks have momentum to add to their 15-year highs.

GPIF said on Friday its holdings of domestic shares rose to 19.8% of its portfolio by the end of December from 17.79% at the end of September. Yen bonds fell to 43.13% from 48.39%. Adjusting for factors such as the Tokyo stock market’s rise of roughly 8% during the quarter, GPIF bought a net 1.7 trillion yen ($14 billion) of stocks in the period, reckons strategist Shingo Kumazawa at Daiwa Securities. GPIF’s investment changes are closely watched by markets, as a 1 percentage-point shift in the 137 trillion yen ($1.15 trillion) fund means a transfer of about $10 billion.

What economic growth can there be in shifting from safe assets to riskier ones? Isn’t economic growth in the end exclusively a measure of how productive an economy is? And isn’t simply shifting your money around between assets a clear and pure attempt to fake growth numbers? Moreover, doesn’t Abe himself indicate very clearly that there is risk involved here, that there is now a greater risk that pension money will have to take losses on its investments? Isn’t he simply stating out loud that he wants to turn the entire nation into a casino? And that without this additional risk there will and can be no economic growth?

It’s time for the Japanese to get seriously scared now. Like many other countries, Japan – and its political class – creates a false image of enduring prosperity by letting its central bank increasingly buy up ever more of its sovereign bonds. It’s a total sleight of hand, there is nothing left that’s real. There’s no there there. This is of course the same as what happens in Europe.

And it’s precisely because central banks buy up all these bonds, that their yields scrape the gutter. It’s a blueprint for killing off the last bit of actual functionality in an economy. All you have from there on in is fake, an artificial boosting of bond prices aimed at creating the appearance of a functioning economy, which can by definition only be a mirage. That it will temporarily boost stock prices in an equally artificial way only goes to confirm that.

But, evidently, artificially high stock prices carry a much greater risk than ones that are based on a free and functioning market and economy. So not only is there a shift from safe to risky assets, there’ s a double whammy in the fact that these large scale purchases boost stocks without having anything to do with the economic performance of the companies whose stocks are bought.

It may make Shinzo Abe look better for a fleeting moment, but for Japan’s pensioners it’s the worst option that is available.

And then last week, a group of smaller rising sun pension funds said they’d follow the example. The more the merrier….

Japan Public Pensions To Follow GPIF Into Stocks From JGBs

Three Japanese public pension funds with a combined $250 billion in assets will follow the mammoth Government Pension Investment Fund and shift more of their investments out of government bonds and into stocks. The three funds and the trillion-dollar Government Pension Investment Fund, the world’s biggest pension fund, will announce on Friday a common model portfolio in line with asset allocations recently decided by the GPIF, the people told Reuters. Assuming, as expected, the three smaller mutual-aid pensions adopt the portfolio, that would mean shifting some 3.58 trillion yen ($30 billion) into Japanese stocks, a Reuters calculation shows.

The GPIF in October slashed its targeted holdings of low-yielding government bonds and doubled its target for stocks, as part of Prime Minister Shinzo Abe’s plan to boost the economy and promote risk-taking. GPIF in October slashed its targeted holdings of low-yielding government bonds and doubled its target for stocks, as part of Prime Minister Shinzo Abe’s plan to jolt Japan out of two decades of deflation and fitful growth and promote risk-taking. The shift to riskier investments by the 137 trillion yen ($1.1 trillion) GPIF has helped drive Tokyo Stocks to 15-year highs this week because of the fund’s size and because it is seen as a bellwether for other big Japanese institutional investors. The new model portfolio, part of a government plan to consolidate Japan’s pension system in October, will match the new GPIF allocations of 35% in Japanese government bonds, 25% in domestic stocks, 15% in foreign bonds and 25% in foreign stocks, the sources said.

Half of Japan’s pension money will be in stocks, domestic and foreign. And what do you think that means if and when there’s a major stock market crash – which is historically inevitable?

Never give a government any say in either your central bank or your pension fund. That’s a very sound lesson that unfortunately everyone seems to have forgotten. At their own peril. Sure, they’re looking like geniuses right now: look, the Nikkei is at a 15-year high! But it’s what’s going to come after that counts. For who believes that this situation can last forever? Or who, for that matter, believes that this head fake will the driver for real economic growth?

Sure enough, now the rest of the region has to follow suit: every pension fund in the region becomes a daredevil. But we know, don’t we, what the rising greenback is about to do to emerging markets that have huge amounts of dollar-denominated debt in their vaults. One thing this won’t do is boost stock markets; it will instead put many companies into either very bad financial straits or outright bankruptcy. And then you will have their pension funds holding a lot of empty bags. From the point of view of major banks this is ideal: this is how they get there hands on everyone’s pension funds, which I once labeled the last remaining store of real wealth.

Pension Funds Shun Bonds Just as Southeast Asia Needs Them Most

The biggest state pension funds in Thailand and the Philippines are shifting money from bonds to stocks, which could push up the cost of government stimulus programs. The Social Security Office and Government Service Insurance System said they’re increasing holdings of shares, while the head of Indonesia’s BPJS Ketenagakerjaan said he sees the nation’s stock index rising 14% by year-end. Rupiah, baht and peso notes have lost money since the end of January, after handing investors respective returns of 13%, 9.9% and 6.6% last year, Bloomberg indexes show.

“There has been frustration among domestic institutional investors about the falling returns on bonds,” Win Phromphaet, Social Security Office’s head of investment in Bangkok, said in a March 19 interview. “Large investors including SSO must quickly expand our investments in other riskier assets.” Appetite for sovereign debt is cooling just as Southeast Asian governments speed up construction plans in response to slowing growth in China and stuttering recoveries in Europe and Japan.

If Thailand and the Philippines, and many other nations in the region, want to speed up their infrastructure projects, their central banks, too, will have to buy up the vast majority of their sovereign bonds. They too will have to fake it. It’s fatally contagious.

And then a few days ago this passed by on the radar. The world’s largest sovereign wealth fund (Norway’s) joins the club. This may seem completely normal to some, either because they don’t give it much thought or because they work in this sort of field (people adopt strange ways of thinking), but for me, it just raises bright red alerts.

Biggest Wealth Fund Targets Tokyo for Next Real Estate Purchase

Norway’s sovereign wealth fund is looking at Tokyo or Singapore for its first real estate investment in Asia as the investor expands globally. “That’s where we think we’ll start,” Karsten Kallevig, the chief investment officer of real estate at the Oslo-based fund, said in an interview after a speech in the Norwegian capital. “If we’re really successful there, then maybe we can add a third and a fourth and a fifth city at some point.” After in 2010 being allowed to expand into the property market, Norway’s $870 billion wealth fund has amassed about $18 billion in real estate holdings. It has snapped up properties in major cities such as New York, London and Paris, with a main focus on office properties. The fund is focusing on specific markets rather than sectors, Kallevig said.

“When we say Singapore and Tokyo, we mean the better parts” of those cities, he said. “My guess is office properties will be the main component, because that’s what’s for sale in those parts of town. There aren’t many shopping malls in the center of Tokyo or the center of Singapore.” Just as in earlier purchases in Europe and the U.S, the fund will also buy properties with partners, Kallevig said. The next trip in that area will probably be in the second quarter, he said. The property portfolio was 141 billion kroner ($17.5 billion), or 2.2% of the fund at the end of last year, compared to 1% at the end of 2013. Real estate returned 10.4% in 2014.

Kallevig has said he seeks to invest 1% of the fund in real estate each year until the 5% goal is met. The Government Pension Fund Global returned 7.6% in 2014, its smallest gain since 2011. The fund has warned it expects diminished returns amid record low, and even negative, yields in key government bond markets combined with slow growth in developed markets. Norway generates money for the fund from taxes on oil and gas, ownership of petroleum fields and dividends from its 67% stake in Statoil ASA. Norway is western Europe’s biggest oil and gas producer. The fund invests abroad to avoid stoking domestic inflation.

Hmm. “The fund invests abroad to avoid stoking domestic inflation.” Really? In today’s zero percent world? Sounds curious. It may have been a valid objective in the past, but not today. What this is really about is chasing yield, just as in the pension fund case. Still, that was not the first thought that came to mind when reading this. That was: If Tokyo real estate were such a great investment, wouldn’t you think that Japan’s own pension funds would be buying? They’re chasing yield like crazy, but they would miss out on their own real estate assets which Norway’s fund thinks are such a great asset?

All this is not just the financial world on steroids, which is bad enough when you talk about someone’s pension, it’s the wrong kind of steroids too. The lethal kind. But then, without steroids the entire economic facade would be exposed as the zombie it has become. It’s insane for pension funds to buy stocks on a wholesale scale, because that distorts an economy beyond the point of recognition, it screws with price discovery like just about nothing else can, and it puts the pensioners’ money in grave danger. It’s equally insane for Norway to buy up property halfway around the world which giant domestic investors leave by the wayside.

Investing your pension money, and your wealth fund, into your own economy is such a more solid and soundproof thing to do, it shouldn’t even be an item up for discussion. Taking that money out of the foundation of an economy, and shifting it either to assets abroad, or into the casino all stock markets must of necessity be in the end, means abandoning and undermining the future strength of your own economy for the sake of a bit more yield today. At home, you could create infrastructure and jobs and resilience with it. All that is gone when you move it either abroad or into a casino.

Still, nothing really functions anymore the way it should. And that’s how you wind up in situations such as these. Central banks monetize debt to such extents, you could swear there’s a race going on. They do this to hide from view the debts that are out there, and that if exposed would make everything look much bleaker than it looks with various QEs and other steroid-based stimuli. In doing this, central banks kill bond yields, which chases pension- and wealth funds out of safe assets. A surefire way to create short term gains and long term losses, if not disaster. For the masses, that is. No losses in store for the few. They get only gains.