Archive for the ‘wealth’ Category

From Wealth of Nations to Wealth of Data

September 2, 2019

Our Declaration of Independence is not the only hallmark document of the year 1776.

There was another one: Adam Smith’s Wealth of Nations, which Wikipedia refers to as a magnum opus.

Magnum opus means pretty doggone important idea, as the multilectic development of our dialectical ideas shape  history.

Smith’s groundbreaking insights propelled our modernizing world into the age of Economics, a new time when the effects of money and industrial productivity began to channel human culture in ways that outweighed traditional institutions.

The Church, the Royals, such ancient paths of power were, in the long run of history, outmoded by the power of the buck.

Freedom to gather wealth was being distributed widely among new, rising enterprisers in society, instead of being controlled by the purse of the Popes or the money of the Monarchs.

Now the tide is turning again, in a major way.

But it’s turning back the other way.

Oh, not back to the Church or the King, but back to another select group—the data mining Social Media.

Now Wealth of Nations morphs to Wealth of Data.

And it seems it happened in the blinking of an eye, so to speak.

All our data that we generate through ubiquitous universal social media gets scooped up and recycled as fodder to generate future wealth, for somebody.

For Whom? Who is gathering the new Wealth of Nations through our electronic and wifi conduits of the Wealth of Data?

Robber barons, monopolists, capitalists, opportunists, daytraders, speculators, hedgefunders, algorithmists, hackers, gamblers, midnight ramblers?

Future wealth, for somebody. . . for whomever is using the data as a field for harvest —to skim new wealth, through  their privileged knowledge of out trendy, predictable human habits. . . our fashions, fetishes, foibles and infamous freedoms.

Freedom to spend, mostly. Especially with all the cardswiping that you see in every spending venue these days.

It’s so easy to spend money nowadays.

Even if you don’t have any!

Using the data streams to  anticipate where the “markets” are headed, where the money’s going . . .those watchful, AI-wielding movers and shakers behind the scenes can know exactly when and where to lower their clickbait nets, and scoop up a big mess of digital debits or financial fish.

“Markets” being the main concentrations of consumer and business wealth that are being spent every day as we live and breathe and spend.

A lot of people are starting to figure this out, about now.

Some have been noticing the profit potentialities for awhile. Others have known from the beginning. They are the ones who have been establishing data-mining as the latest phase of capitalism.

I learned something about this, this morning, when I read Karin Petersson’s report about it on the Social Europe site.

   https://www.socialeurope.eu/politics-in-the-age-of-data

Karin’s opening statement got my attention in a big way.

“It’s impossible to change the world if you don’t understand the forces shaping it.”

That is so true, Karin.

I went on to read her concise treatise, which consisted of an insightful cautionary statement about the three main problems of this data-mining development. I will list those three here, while recommending that you read her article in order to get her thoughts from her article—not mine.

Karin’s list of the three problems:

~~Rage machine

~~Winner takes all

~~Survival of Democracy?

She is calling into question the survivability of democracy in these new social media conditions that have overtaken our way of life.

You should read it.  https://www.socialeurope.eu/politics-in-the-age-of-data

Now I do have something to say about her opening statement:

“It’s impossible to change the world if you don’t understand the forces shaping it.”

So true.

But I confess that my free-thinking mind dropped the KM bomb on me. That is. . . Karl Marx.

. . . not that Karin is a Marxist or anything like that.

My point is that even if you DO understand the forces shaping the world . . . odds are you still can’t change it!

Oh yes, maybe you can make some beneficial contributions, maybe some helpful new ideas, but convincing yourself that you can change the world based on what you know or understand about it . . . that is a dream that will never come true.

Take the Karl himself, and his idea: The factories and businesses of industrial production are owned by a few rich people.  If the regular working people—the proletariat— could take over that means of production and do a fairer job of running it— then society could distribute the wealth in an equitable way. Everybody would have a piece of the pie and we could all live then in an egalitarian commune.

Happily ever after, as they say.

Certainly I am oversimplifying this scenario, but I do it for the sake of simply making this point: You can’t change the world, even if youdo  understand the forces that are shaping it.

My layman’s reading, for instance, of Marx/Engels Communist Manifesto led me to the conclusion that their analysis of capitalism as it was developing in the mid-19th century was, for the most part, accurate!

They predicted, for instance, the alienation that would indeed later take hold of many workers as a result of having to perfoem repetitive production tasks.

So Marx, Engels and others later went on to prescribe a fix for the problem: dictatorship of the proletariat.

When Lenin, Trotsky and others got a hold of this concept they acted on it.

But look what happened. Things got bloody. By the time Stalin got hold of the new development, the formerly fresh thrust of worldwide communism turned into prison gulag.

And it did not recover until the time of Gorbachev, Yeltsin, etc.

That’s one small idea for a man . . . and one giant, very hard lesson learned for mankind.

You can’t change the world, even if you do understand the forces that are changing it.

In the present context of data mining, this principle would perhaps translate to: find a way to regulate the data-miners, but don’t try to take the whole damned machine away from them. This is merely capitalism in its emerging 21st-century form.

DataMining

Neither the technocrats in Brussels, nor the bureaucrats in Washington can stem the tides of history. You just have to regulate those who control the Wealth of Data, insofar as it is Constitutionally  possible, and leave the rest to each individual citizen’s free will and judgement.

The same principle applies, btw, for Climate Change.

Education, for whosoever is willing to learn, is the remedy. Not control. We all need to be convinced to to the right thing.

Life, liberty and pursuit of happiness must be assured for all, in spite of all the data-miners  who lurk behind our keypads, sucking the hot air out of our collective social media balloon.

Glass half-Full

Money’s Swan Song

August 11, 2019

In the beginning God created the heavens and the earth.

Well a lot has happened since then.

Our Creator had done some amazing creating through that original sparkle, and has given us the wherewithal to jump in there and participate in the creative playing out of all things in our domain.

The power to create was not given to other species on our planet—only to us.

We humans have done some pretty amazing things with our God-given talents.

After hunting and gathering, we planted, harvested and ate the fruits of our labors.

in the course of history, we have moved far beyond just eating, drinking and homesteading.

It’s been ever onward and upward for us, since we got a hold of this divine spark thing that we call creativity.

We’ve built pyramids and great walls, temples, mosques, cathedrals, skyscrapers, great bridges and machines that move across those bridges.

We’ve built roads, rails, blazed trails, had great successes and fails. We’ve devised tools, schools, lots of rules; we’ve forged implements, arts, coins, currency, and we’ve maintained a steady errancy.

We’ve painted, sculpted, interpreted the real world as works of art. We’ve disrupted, interrupted, corrupted and upended nature itself.

Now our carbonized creation turns—in some ways—against us.

Back at the olden time, when we received the power to cultivate earth, we were instructed to subdue those elements of the natural world that seem to be active against us—like, say, lions and tigers and bears. Such critters we had to subdue, so they would not make mincemeat of us.

Earthquakes, volcanoes, storms, tsunamis, etc.— these adverse forces we could not subdue, so we took shelter. As the ages rolled by, our sheltering instincts developed into elaborate structures.

And we have done pretty well with that. We homo sapiens have taken control of the planet—or at least we think we have. The planet may yet rise up to bite us in the ass. We shall see what happens with that.

A major sea-change that happened along the long odyssey of our progress was: we devised ways to substitute real goods into artificial representations of wealth.

Better known as making money.

MoneySwan

Land, food, livestock, clothing, shelter and such commodities that are essential for survival—all these are now exchanged by monies, currencies, paper-backed assets. And the latest thing is: electrons seem to be our new currency.

Our ancestors carved trails out of the wilderness. They gathered grains, sowed seeds, domesticated animals, and sold to neighbors or merchants all the produce thereof.

As those primary goods coalesced over the ages as markets, their value was measured and traded as money. This we called trade. Then we called it commerce, then business, and now. . . economics. We humans invented the system a long time ago because . . . well, because . . . I don’t why.

lt’s just what we do I guess.

For one thing, it made the process of manipulating wealth easier.

In economics, wealth was and is evaluated in terms of dollars or yuan or yen, or marks, francs, drachmas, denarii, zlotys, rubles, pesos, pounds sterling, etc.

Euros are the new kid on the block. They seem to have trouble making that one work.

The difficulty with retaining true value in these currencies is related to the fact that they’re—in real survival life terms—not really worth anything.

They only represent wealth. But they are not really the real thing.

I say the EU is having trouble establishing the value of their Euro. This goes way back.

The Brits, for instance, were having trouble in the 1930’s retaining the value of their pound. It seemed that their constructed currency could not maintain its value compared to gold.

Who the hell can compete with gold?

Gold goes way back.

Way back.

The second chapter of Genesis, for instance, mentions gold.

“The name of the first (river) is Pishon; it flows around the whole land of Havilah, where there is gold.”

I suppose there’s a reason why gold goes way back in our history. Even though you can’t eat it, drink it, or keep your household warm with it, it is . . .

quite shiny.

Beautiful stuff, that gold. Precious!

Back to the Brits. As the world economy was falling apart back in the ’30’s, many savvy persons decided they would trade their British currency—pounds—for gold.

So many savvies were wanting to get back to gold, that the British government quit selling it.

What would happen after such an arrangement?

I think it was that fellow Keynes who figured out that—guess what—the economy just kept on cranking—all the goods and stuff and commodities and products and financial instruments and whatnot—just kept swirling around in international commerce.

The world didn’t stop turning. Business just kept on doing their thing. Rich get richer and poor get poorer and hey what else is new.

What else is new? Nothing. Nothing new under the sun.

Guess what. We didn’t really need gold to back currency! It was just a phase we were going through—the golden age of gold.

Back in ’73, Nixon pulled the same trick as the Brits had done in the ’30’s. He and his Bretton Woods powers-that-be decided we could no longer afford to sell gold for dollars. Too many folks wanted the gold instead of the dollars.

So we see that man-made currencies are not foolproof, and the gold bugs are always trying to make a comeback.

Money is a habit; that’s all. A very old habit.

Folks are born and bred into this modern economic world.  We are commercialized, or socialized (depending on your politics) to just keep spending those pounds and dollars and cents and euros and yuan and yen and SDRs and thusandsuch.

Nowadays we don’t really even use the money any more. Now it’s just electrons flowing around that represent debits and credits.

And that’s why—I suppose— the central banks of the world can keep cranking out their reserves, because the right to assign value is now reserved to them. It has nothing to do with gold or fiscal guarantee.

The central banks, in the fatal footsteps of every financial crisis, have reserved the right to “create money out of thin air.”

I told you we were creative!

The greatest discovery of the modern world:  we don’t even need anything to take the place of gold.

Money is just an old habit we have; we’ll never put it to rest. So somebody has to be “printing” it somewhere.  We spend so much money that all the .govs of the world are running deep debts trying to keep all the citizens fat ‘n happy.

There’s so much liquidity in the world today that the dark swan of excess has smooth sailing. Someday, some Leninish strongman will come along and dissolve all that debt into even more liquidity.

It will be a meal ticket for everybody. Yes, Virginia, there is a free lunch, doesn’t matter who’s paying for it.

It’s only money.

Glass half-Full

The Mystery of Mastery

May 12, 2019

Are you angry? Why? , , , and why is your attitude down?

If you do well, won’t your attitude be lifted?  But if you don’t do well, despair is crouching at your door.

But you must master it.

Choose discouragement, or improvement. Which will it be?

You have freedom to choose, you know.

Learn how to use that freedom. Master it.

Life brings good things to us, but life also throws some bad stuff at us along the way.

When life is a walk in the park . . . well, that’s great. Enjoy it. Make the best of it. From that favorable circumstance, move forward by taking measures to strengthen the stability that comes from that advantage.

But when the bad stuff again plops itself down in your garden path, what then? What you gonna do about it?

Don’t let it get you down. Although failure is lurking in your path, overcome it. Defeat defeat. Take mastery over discouragement.

Understand and accept that Life is going to drum up a certain amount of setbacks. Trouble comes with the territory in this life.

But you must master it.

Choose to master life; it will take awhile, maybe a whole lifetime.

We do have this choice, you know.

The ability to choose our own attitude, and thus set our own course—this is what we call freedom.

Freedom—you must master it.

We are free to choose where we go from here.

You are free to choose which way you will turn when that inevitable obstacle suddenly blocks your road to wherever it is you are going.

When the big one hits and throws you into a tailspin, will you wallow in your own discouragement?  Or will you master it?

Life itself was created for you, with this choice built into it.

But there is a good purpose for that challenge.

Having that choice is called freedom. Make use of the freedom. Master it.

Sometimes freedom is a pain in the ass, but Life would be a drag without it.

While you’re out there discovering life, you will surely run into some counter-productive influences . . . for instance, the idea of determinism.

Determinism is when some person or group wants to convince you that the obstacles in your path will surely defeat you, because the System is stacked against you.

The current strategy of the Determinism crowd says, for instance, Capitalism is against you . . . it cannot work for you.

But hey! . . . not if you master it. Take hold of any good opportunity to move forward.

Capitalism is what you—or perhaps your great great grandparents— entered into when they stepped off the boat, into America. Capitalism, with all its perils and pitfalls, is part of the territory here.

Master it.

America

You  can put capitalism to work for you, instead of against you.

The Determinism idea says that capitalism is nothing more than all those rich people and corporation manipulators who are perpetually stacking the deck against you.

But hey, that’s only a part of what capitalism is. Along with those unfavorable elements, capitalism includes also your freedom to choose something different, if what you presently are doing is not working for you and yours.

You must master it. That’s your end of the deal.

In America, you would do well to master capitalism. Make it work for you. Work?

Work—yes, that’s important. Capitalism doesn’t properly function without it: work.

Can’t find work?

Make your own work. Find something to do. Find something that needs to be done and do it. Present your bill to whomever is benefitted by your work. Even if you’re collecting unemployment or disability benefits or whatever, find something helpful to do. You’ll find yourself feeling better.

While the System is, yes Virginia, in some ways stacked against you, do not accept the negative assessment that there is no way around the obstacles.

Obstacles are standing outside your door. You must master them.

Obstructions are just around the bend. Master them.

If you don’t master them, who will?

Big Brother? The Fairy Queen?

Capitalism includes  your freedom to adjust your own attitude, and strategy, to get around, over or under whatever the System throws at you.

Master it. Learn when to work with it and, when to work against it.

It is true that working with the System is not always the best thing to do.

So this is also true: sometimes you will indeed have to work against the System, running against the wind, swimming against the tide.

That does not mean you allow the mob to convince you that the system is hopeless and the only way around it is to stir up trouble and destroy the System. There has, in the history of the world, always been them Powers that Be working against them that need to carve a new way out of the wilderness.

Knowing at any given time whether to work with the system or against it—this is called Wisdom.

You must master it. You must learn to use wisdom; cultivate it.

Wisdom is key to mastery in this life, but it doesn’t come easy.

Wisdom only comes through encountering both adversity and success.

So understand that adversity is part of the program for your obtaining mastery.

When you are at the crossroads of adversity and success, don’t cultivate discouragement; don’t malinger in bad attitude.

And don’t be hoodooed by  that Determinism that’s out there and wants to incite the rabble to riot. Don’t go there.

Determinism is when some person or group convinces you that the obstacles in your path will surely defeat you, because the System is stacked against you.

Determinism says the outcome of your life has already been determined by an exploitive Capitalist System.

Determinism wants to convince you that you cannot muster the power to master your own destiny.

Determinism says, for instance,  you’re not making enough money to make a living, and you never will.

It is true, yes,  that  making more money could improve your situation.

But that’s not the whole enchilada.

Master the money thing: when you get some, make it work for you; don’t fritter it away. Put your money to work. Don’t let the Determinism crowd convince you that it’s all about money. Life is not all about money.

Life is all about what you do with life.

Determinism also  says you cannot improve yourself through discipline and study, and work.

Determinism says the only way you can outwit the system is to yield to the trending decadence and anarchy that perpetually wants to destabilize you and everybody else.

But don’t let it take control of you. Take control of it.

Master it.

Master life, and you will do well.

Don’t raise cain. Instead, make yourself able.

Learn to make some sacrifices.

And thank God.

Glass half-Full

From Enlightenment to Onlinenment

May 4, 2019

Peering way back in human history, we find . . . generally, the battles have indeed been won by the strong, and the races are usually won by the swift of our species.

There are exceptions, for sure, but generally you know it’s true. Them who know how to throw their weight around  usually manage somehow to outweigh the rest of us.

The people who manage to work, or fight or compete, to the top of the heap—those folks pretty much stay on top of things until some group or faction that is lower on the pecking order manages to muster enough money, or strength or discontent or firepower or political power to throw the bums out and usher in a new regime of wealth, or weapons, or wherewithal to take charge of things and call the shots.

Throughout history we talk about this and wonder about how to deal with it in ways that are fair and equitable, and maybe even civil.

In the last 300 years of pondering these issues, we’ve moved from the Age of Enlightenment, through the Age of Development, and now we’ve progressed into the Age of Onlinenment.

Three centuries ago, power was all about royalty. The royal houses pretty much ruled the world. They divided it up. Now and then they fought battles, or even wars, to re-draw the boundaries of ownership and authority and hegemony etcetera etcetera.

The printing presses had gotten in gear back in the 1400’s; over time all those mechanically copied manuscripts began to make a difference in everything that happened.  Ideas got spread around through documents and books, and people began to think more, exchange ideas and information more, think differently about themselves and the world they lived in, and . . .

People got smarter, or at least they thought they were smarter. At any rate, they had more information (more data!) to work with. Many of these smart folks figured out that they could work their way out of indentured servitude or serfdom or whatever royal arrangement had been holding them back.

So they moved off the estate, and into town; there they set up shop, doing business, making goods and services that people needed.

Capitalism was born. . . little people doing business and making it on their own.

Along with capitalism came the age of Enlightenment, a time in history when more and more folks were figuring out that hey! we can do this this thing we don’t need the bluebloods up in the castle to tell us what to do.

Although it took a century or two for these changes to really make a difference on a societal level, eventually the newly emerging middle classes had enough members and resources and smarts and clout to push the old fuddy-duddy royals out of power.

It was a long bloody process. Our American revolution busted out and changed the world forever.

Revolutions (1)

The French did an even bloodier version when they guillotined the Bourbon monarchs. As the proletarian uprisings gathered steam across Europe,  Napolean and Marx and hordes of discontented Europeans got out in the streets to rearrange the economic structure of things into a state more fitting to their demands.

Eventually, the Bolsheviks in Russia managed to run the royal Romanovs outa town. The new revolutionizing proletarians cornered those royals and put  bullets into their fair-haired Romanov heads.

Further down in Europe, the same Revolutionary zeitgeist was burning hot. 20th-century Liberation busted Western civilization out of its old royal antiquities. Along with the supposed modernizing came a bloody mess called the World War I.

Archduke4

When the guns were finally silenced in 1918 and the smoke cleared and the dust settled, the world was a different place.

Most of the royal houses had been run out of their big houses; what was left of them were cornered into ceremonial roles, and a new way of doin’ things became the order of the day.

Our yankee country country here had a lot to do with the way things turned out. After we had sent King George and his reds back to Britain with their tail between their legs, we had a whole, vast, 3000-mile continent just waitin’ to discover what the steam locomotive and the motorized tractor and the combine and the cotton gin and the blast furnace and everything from Pittsburgh to Pacific was all about.

And by the time we got to the Pacific, by crackies, the world was mechanized.

We had wrought it into a whole New World.

However, as things developed here in the 19th-century in the big wide bustin’-out USA, the ancient hierarchical tendencies of the human race had re-asserted themselves the fray, and before you know it—in spite of all the wide open spaces and new opportunities— we were back into a situation where the rich got richer and and the poor got poorer.

As the tycoons and magnates—Carnegie, Rockefeller, Bell, Edison, Morgan—got America all cranked up on oil and gas and electrical power, they formed companies.

By ’n by, them companies grew and prospered, and—long story short—those little startup corps from our late-19th, early 20th-century developments eventually morphed into giant corporate behemoths.

Even so, every now and then throughout the last century, a big economic reset button gets pushed somewhere and the forces of mankind whack the hell out of all our wealth-gathering institutions.

The biggest Depression hit back in ’29 and hung itself around our necks until the big guns showed up to blast us out of the trenches. After the Second Big War, we had a big round of wealth-spreadin’, middle-class widenin’ expansion with more folks than ever before jumpin’ on the middle and upper-class band wagons.

It went on a half-century or so, with ups and downs along the way but most everybody gett’n’ at least a little better off along the way, until ’08 when another whopper hit wall street; it dumb-struck the powers-that-be for a few weeks until they got their act together and yacked their way into a deal in which We the People baled them and ourselves out of what would have been disaster, or so the tale is told.

Anyway, here we were a century+ past those robber barons and big wheels and under-the-table deals, and the corporations are thought to be running the whole shebang.

19th-century: the Royals, kings and queens, monarchs, dukes, earls, counts, etcetera etcetera

20th-century: CEOs, CFOs, Chairmen of the Boards, etcetera etcetera

All along the way, a whole lotta regular folks have jumped onto the Corporate bandwagon and wiggled their way into some of the booty therof. Out here on the coasts and in Flyover country, a whole lot more of us consumers are in a big way dependent on this Corporatized way of doin’ things.

By the late 20th-century—and now going into the 21st—the upper-middle-class’emites who keep the electrons and the debits and the credits and the assets  hummin’ along through that vast Corporate power Web— they are pretty well fat n’ happy, like their blueblooded ancestors.

Their modern morph-up into class and privileged status was Corporate-fueled, not Royal-based like in the earlier versions.

Especially since ’08 when the whole financial world blew apart again and We the People bailed the Bankers and their kissin’-cousin Corporate mavens out.

In this round of history, the Discontents among us not using the printing press so much to drum up all this protest and pushback we see rising . This time it is more about the the Twit and the Web and the Net.

We’ve progressed past Enlightenment, past Development . . .

to Onlinenment.

DigitHeads

And by means of this digitized Onlinenment, folks are gettn’ all hot n’bothered again, and workin’ themselves into a tizzy about those same ole inequality-breeding patriarchal tendencies, which have forever reared their privilege-seeking heads into positions of authority.

We find ourselves once again passing Go. Roll the dice and collect $2 million. And so the rich get richer and the poor get poorer. What else is new?

But this time the disruption is not about throwin’ out King George or King Louie or Czar Nicholas or the Archduke of Serbia.

In this round, its about throwin’ out the Corporate mavens and their kissin’-cousin Politicians, and maybe even the Digitheads along with them, and then replacing them with . . .

um . . . with what?

Y’all Discontents be careful now. We don’t want any more Stalins or Maos, or even Chavez. Let’s talk about this.

Go easy on us who are fellow-travelers in this planetary arrangement. Let’s not throw the baby out with the bathwater. Don’t wanna throw the can-do out with the carbon.

Glass half-Full

The Knave New World

May 2, 2019

In 2007, Alan Greenspan published a fascinating book that chronicled not only his own life, but the life of the monetary world in which he grew up,  and in which he ultimately played a major role as Chairman of the Federal Reserve.

  https://www.amazon.com/Age-Turbulence-Adventures-New-World/dp/0143114166 

Mr. Greenspan’s keen observation of contemporary monetary history is demonstrated throughout the book. On page 92, Alan had this to report about the legendary Reagan tax cuts of the 1980’s:

“The cornerstone of the Reagan tax cuts was a bill that had been proposed by Congressman Jack Kemp and Senator William Roth. It called for a dramatic three-year, 30 percent rollback of taxes on both businesses and individuals and was designed to jolt the economy out of its slump, which was now entering its second year. I (Greenspan) believed that if spending was restrained as much as Reagan proposed, and as long as the Federal Reserve continued to enforce strict control of the money supply, the plan was credible, though it would be a hard sell. This was the consensus of the rest of the economic board as well.

But (David) Stockman (Reagan’s Budget Director) and Don Regan, the incoming treasury secretary, were having doubts. They were leary of the growing federal deficit, already more than $50 billion a year, and they began quietly telling the President he ought to hold off on tax cuts. Instead, they wanted him to try getting Congress to cut spending first, then see whether the resulting savings would allow for tax reductions.”

Well good luck with that!

And gollee, that was about 39 years ago, and about 20 trillion $$ of federal deficit ago. . .

Ronald Reagan, God bless ‘im, was the last of the Mohicans of old-style let’s-try-to-balance-the-budget school.

Yet we still pay lip-service to that principle.

But–let’s face it– those days are gone forever. They went out with with saddle oxfords and gumball machines and  Archie Bunker and 1-cent lollipops and debits on the left with credits on the right that balanced each other out.

Now Reagan, God rest his soul,  is no longer with us, nor Kemp,  and the world is a totally different place. Ronald Reagan was the last of a balancing breed that has vanished into fiscal history.

The cowboy hero has ridden into the sunset.

David Stockman is, however, still with us, and still living in the past,  still harping, God bless ‘im, on old-hat financial and fiscal responsibility. Good luck with that, Dave!

https://www.deepstatedeclassified.com/dsd20190426/

In his most recent newsletter, David Stockman posted this assessment of our present situation:

“The Main Street economy is failing. But the Wall Street fantasy is thriving. You can lay responsibility for this dangerous disconnect at the doorstep of the Eccles Building.

The Federal Reserve’s extreme monetary central planning regime long ago disabled capital markets and destroyed price discovery.

Bubble Finance has euthanized workers and savers and lobotomized traders and speculators.

And our monetary central planners know it.”

While Mr. Stockman’s assessment may very well be true, it may also be irrelevant.

The world . . . as it always does and always has, has changed.

Tap your ruby slippers together, David.

RubySlippers

and close your eyes and realize: We’re not in Kansas any more. All the rules have changed. Take off your rose-colored glasses.

We’re not wheelin’ and dealin’ in ole Wall Street any more, or Peoria or Pittsburgh or Palm Springs. Now we are in, as Aldous Huxley once said, a Brave New World. . .

A world in which monetary markets and price discovery are no longer the primary determinants in the money game. . . a world that has, yes Virginia, yes Alice and yes Dorothy, been commandeered by a thunderous consumerist horde who have no wish to be bound by these old financial fuddy-duddy obsolete principles, a world that has been fundamentally transformed by Keynesian realpolitic and by the pragmatic keep-bailing-this-boat central bankers of the world with their legions of yassah data-crunching technocrats to maintain the welfare of us all.

And we will never go back.

Because money itself is, and always has been, truth be told, worthless, being nothing more than klinky coins that can get you a wad of chewing gum, or paper bills that can get you a sugar-high from a vending machine, or electrons that can get you a charged-up night on the town, or a day in the sun, a week at Disney if you’re lucky, and a health-insured, social-security certified lifetime in this knave new world.

The “Capitalism” of Adam Smith and John Stuart Mill and Jacob Marley and JP Morgan and even Warren Buffet has . . . gone the way of the buffalo.

Now it’s just benevolent electrons whirling around the world taking care of everybody.

And when you finally see the writing on the wall, Dave, look at those deficits and . . . read ‘em and weep. Nobody cares about deficits any more.

The central bankers of the world will never have to face the music of fiscal responsibility that keeps ringing in your ears.

We’re never going back to the old balancing acts. Where we’re headed is. . . everybody gets a meal-ticket as long as all’s quiet on the Western front and the red sun still rises in the east. Welcome to the knave new world.

Glass half-Full

Gold I Have Seen

April 22, 2019

On the Periodic Table of earth elements, gold is found in the middle of pack, at number 79. So while the shining yellow metal is just another lump or two in the great planetary array of substances, it is, and has always been, coveted and collected by us humans.

Gold has a curious effect on us. Through the ages, people have assigned many meanings and uses for the lustrous stuff.

I have seen gold on a few occasions in my life.  Like most folks, I am fascinated with the sight of it.  Here are a few pics of the bright metal I have collected. While pondering what gold represents, I made a list. For what it’s worth, here’s my take on what gold means to us.

~~~Gold as Wonder

Amazing how . . . ?

GoldCrys

~~~Gold as Beauty

GoldUrn

~~~Gold as Value

GoldCoin

~~~Gold as Religious Ceremony

An altar in a Catholic Church in Rome

GoldAltar

~~~Gold as Authority

This gold-tipped mast and dome is seen at the top of San Francisco City Hall.

GoldSFCity

~~~Gold as Power

In this room, the last emperor of the Hapsburg empire, Karl I of Austria, renounced all claims of royal authority over nations and empire. The renunciation took place November 11, 1918, the last day of World War I.

World War had begun in 1914 after his uncle, Archduke Franz Ferdinand, was assassinated in Sarajevo, Serbia, which was at that time a part of the Hapsburg Austrian empire.

From that point and time in history, the many families, dynasties, kingdoms, and empires of royal authority who have ruled the world for so long . . . began their slow, modern slipping into mere ceremony, and —many would say—irrelevance.

This room in the Schonbrunn palace, near Vienna, is now property of the Republic of Austria.

EndRoom

~~~Gold as Precious

a golden moment of precious repose, reflection and contemplation

GoldnMomnt

~~~Gold as Fidelity

Good as gold. . . in our case, 39 years and continuing.

Marriage

~~~Gold as Heaven

“. . . and the street of that city was pure gold.”  (Revelation 21:21)

I haven’t seen this one yet, but one day I will, thanks to Jesus, who was resurrected after being nailed to a cross.

King of Soul

Green Money

March 20, 2019

It has been about 200 years since our great American expansion picked up enough steam to really get going full throttle.

From Maine to Miami, from Seattle to San Diego and everywhere in between, in our humongous exploitive thrust westward, southward, and  every whichaway you can think of— we went bustin’ through the Adirondacks, the Appalachians, across the  wide prairies, over Big Muddy, up the Missoura and all the way down to the Rio Grande, through Sierras out to Pacific shores, even leaping oceanward and skyward to Hawaii.

EucTre4

Back in the day, when we got into the thick of that vast continental expedition, we moved over and through rolling virgin landscapes of living green.

Green were the great evergreens of the North. Green were the hardwood forests on coastal plains, on Appalachian slopes, on heartland grasslands. Green were the piney woods of the South. Green were the grains of the far-stretching prairies.

And the certificates by which we assigned value to our works—these too were green.

Dollars—we designed them in green.

Dollar

So, green were the dollars that transacted our nation through thousands of ventures, millions of contracts, compelling trillions of working hands that were capitalized by investing hands, then driven upward in value by speculating hands and traded cleverly by arbitraging wallstreet whizzes.   

Some newly-immigrating Americans moved independently, others collectively, across the continent. All along the way they cultivated green crops and earned green dollars wherever they settled, digging, mining, organizing co-ops, forming companies, building roads and bridges, collaborating, accumulating capital, incorporating, expanding, growing, thriving, burgeoning and burdening.

Burdening the earth. Extracting to the max all along the way. Tow that line; tote that bale. Milk it for all its worth.

By the time mid-20th century rolled around, ole mother earth was bursting at the seams, displaying scarred hillsides, scraped-out open-pit mines, hollowed-out insides, chemicalized sores, oozing green slime. . . but enabling us thereby to whiz along on continent-wide  interstate rides. Hey, let’s pull over for a song break:

  http://www.micahrowland.com/carey/Deep Green.mp3

We grew up with stock-green scenery whizzing by outside the windows at 65 miles per hour— seemingly insignificant landscape sliding through the view on our way to wherever our best-laid plans of mice and men might propel us.

At ramping exits we egress to fill-up on the American dream, then cruise control at 78 mph in our lean dream transportation machines. Green, green is just a tucked-away scene behind the gas station.

Still yet are the the dollars green, but only in our minds, because now we’ve digitized them so we don’t actually lay eyes on them $$ any more.

And then, lo and behold, a new thing happened. Motivations morphed. The politics that drives our nation states began to turn green.

Whereas, before, red, white, and blue were the colors that motivated us.

Now we find that the ole faithful red, white and blue of Liberty has run its course through world history. Those other nation-states that had followed our galavanting, capitalizing lead. . . now they have fueled their engines with our money-green currency, and they did park billions of our little federal reserve notes into every marketplace and bank vault across the globe. . .

But what goes around, comes around, and when it recycles, it morphs as something different.

Alas, so now what new Green through yonder Continent breaks?

Turns out that some Keynesizing technocrats have devised a means to turn the whole financialized world around so that the new motive—the re-greening of earth—becomes society’s great purpose and goal. On the old economic scenario of Supply and Demand, Sustainability arises as the new Remand.

Instead of the profit motive! Instead of Go West Young Man, now we find a new clarion call: Go Green Young Band!

     https://www.socialeurope.eu/green-money-without-inflation

Will it work?

Glass half-Full

What about this Post-capitalism?

March 3, 2019

There are a many constructive ideas floating around in the world today.

Some are commendable, others not so much. If people propose plans for making the world a better place, then let’s hear them. Let’s consider those plans.

In our present big picture, the hot-button point of contention seems to revolve around the fate of free-market capitalism, in an age of diminishing planetary tolerance.  Is capitalism as we know it an appropriate framework for just and equitable economic development in our present, allegedly climate-changing world?

Are free-market institutions still appropriate for our collective life in the postmodern 21st-century?

Can free-market capitalism even be retained in our planetary future? Or will it be overpowered by some new 21st-century tamed-down socialism?

Generating from some academic and technocratic quarters, we find revisions of the old Marxian ideology, along with assurances that the world has certainly learned hard lessons through the disastrous failure of 20th-century communist experiments.

At  https://www.socialeurope.eu/postcaptalism-unbearable-unrealism , Paul Mason writes:

    Moving to postcapitalism does not entail eradicating market forces overnight or accepting the command-planning methods of Soviet economics. The aim is to design a controlled transition in which market forces cease to operate as the primary allocator of goods and services on the planet, in which the state shrinks and the debt mountains are dismantled.”

and

   “In the past 15 years we have built a highly dysfunctional system, which is unsustainable on all traditional assumptions. It is a system of permanent single monopolies, with massive rent-seeking and financial exploitation, the creation of low-wage, low-skilled jobs designed to keep people inside the system of credit and data extraction, and massive asymmetries of power and information between corporations and consumers.”

Now, as a centrist conservative American, I read those above words and they somehow ring true. There is a sense in which I feel there is maybe some realistic MainStreet experience  missing there, but I see that Mr. Mason raises valid points, which are worthy of our consideration.

On the other side of the debate, Jordan B. Peterson has a different take on our world problems and how to solve, or at least address, them.

At  https://www.youtube.com/watch?v=YXgZAdaMtS8&t=35s,      he says:

     “If you’re tilting toward the left, and you’re temperamentally inclined that way—and half the population is—then you have an ethical problem on your hands, which is . . . how do you segregate yourself from the radical policies of the 20th century? “

and

“. . . two things exist in a very uneasy (leftist) coalition in the West—there’s care for the poor, and hatred for the successful.  Those two things are not the same at all . . . and it looks to me that one of the things that really happened when the communist doctrines were brought into play , and also by the way we did the multi-national experiment.  It doesn’t matter where you put these policies into play . . . the same bloody outcome occurred. Didn’t matter whether it was Russia, or China, Cambodia or Vietnam—pick a random African country—or Cuba or Venezuela, for that matter. . . it was an unmitigated catastrophe. That has to be dealt with.  The intellectual left in the West has been absolutely appalling in their silence on the communist catastrophe.”           

Dr. Peterson, the speaker of these words just above, is a Canadian professor of Psychology at University of Toronto.

Down here Stateside, we have a sizable number of Americans who agree with his assessment. That supportive group includes the this blogger.

Back in 1989, freedom-cultivating citizens, such as I, thought we heard the ringing resonance of a Liberty bell when the Soviet Union fell apart and the Berlin Wall came down. We were patting ourselves on the back after those historic events, especially because Kennedy had gone to Berlin in 1963 and spoke:

    “There are some who say that communism is the wave of the future. Let them come to Berlin. . . Freedom has many difficulties and democracy is not perfect, but we have never had to put a wall up to keep our people in . . .”

And then later, Reagan went over there and said:

    “Mr. Gorbachev, tear down this wall!”

Well, the Germans did tear down that damn wall, and the subjects of Soviet domination throughout that terrible empire wasted no time in tearing down—not only a wall— but much more. . . the Soviet Union itself.

Like Humpty-Dumpty it was.

So the question remained: Would they, could they, tear down all that Marxist communist ideology that had built that wall under threat of gulag imprisonment? Could they expose and dismantle the Statist oppression that had built all the gulag walls? and the Stalin statues, and the tanks and the nukes, etcetera etcetera.

That would take a long time, and it has taken a long time. But in some ways, that early 20th-century tide of Marxist oppresso-utopian wishful thinking is seeping back as a kind of theoretical, kinder, gentler socialism.

So the question becomes: is there any part of the Dr. Jekyll Marxian collectivist ideology that is workable and fair? and, as for the Mr. Hyde alter ego: Is there any part of that disgraced Soviet that would creep back as fierce totalitarian servitude?

Cmnism

On the other side of 21st-century civilization, at the same time, and as long as we’re at relative peace in a cooperative globalist attitude, another question arises: What parts of FreeMarket Capitalism are still workable?

Tiananmen talk

Advocates of our free-market democratic republic must admit, for instance, that yes, Virginia, Freedom and free-market capitalism does have its problems. It always has, although those troubles do not necessarily disqualify the free market as a model for economic well-being.

The weak spot in our capitalist framework was exposed in 2008-9, when our financially engineered wall street perpetual profit, speculative machine flew apart, and sent all of us free-marketeers high-tailing it for the exits.

Statistics reveal that since that disruptive correction in the fall of ’08, a stubborn stagnation has taken hold of our economy. Even though the Fed cranks out statistics to reinforce the notion that we have recovered . . .we have not recovered.

You call this a recovery?

No way!. I grew up in the ’50’s; I know what a real recovery looks like, and I worked my way through the ’90’s.I know what a truly busy, productive economy feels like.  And whatever we got now—this ain’t no real recovery.

  This is stagnation.

The Feds got all their numbers trying to convince us that all is well, but the truth is: So many folks are not making enough money to prosper. They’re just gettin’ by. Meanwhile so many speak of a widening inequality gap, and although I don’t really see the world in those “class warfare” terms, I suppose that, in some sense, yes Virginia, the rich are getting richer and the poor are getting poorer.

But then, hey, hasn’t that always been true? We shall see. At any rate, let’s not get all commie-bent out of shape about it. Just keep busy. Find something helpful to do. As Jordan says, responsibility gives life meaning. You can start by cleaning your room, and thereby making the world a little bit better place.

Glass half-Full

Where to now, Homo Developus?

January 16, 2019

Everybody knows that a few years ago we had a big economic breakdown. There were many reasons to explain  what happened in 2008.

Let’s step back in time a little and consider what has taken place on Planet Earth.

During the 1800’s and 1900’s our developed nations undertook a vast, worldwide surge of industrial development, which was accompanied by a universal expansion of business and corporate prosperity. This hyper-expansive phase of human development required very large-scale extractions of natural resources, which were then transformed into mega-stocks of consumer goods.

An abundance of consumer goods brought forth an abundance of consumers.

Consuming.

Consuming the goods, consuming the planet.

The end of the 20th century brought a vast slowdown. It happened in the fall of 2008, and regardless of what the bullish analysts and stimulus-chasers declare, we are still mired in that big slowdown of ’08.

And will continue to be. This is going to morph into a vast leveling out. The industrial age is over. Our planet will not tolerate another 200-year extraction expansion.

Now we have entered into the Age of Sustainable Technology and Appropriate Industry.

And herein a question arises.

Who will run the world?

Is there a cartel of Carnegie, Rockefeller, Edison and JPMorgan-types out there who will forge a new system to transform the old Industrial Infrastructure into the new Sustainable Society?

As the next surge—the post-industrial phase— is being initiated by a new breed of Industrialist . . . the Gates, the Jobs, the Bezos and Buffets . . . the industrialized Civilization stumbles into a new Electronified Zone.

A digitized twilight zone, as it were.

In the wake of the great ’08 Slowdown, we encounter a host of questions that define the logistical problem of where to go from here.

During the Investment Segment’s breakdown of ’08, a lot of very complicated financial engineering became unwound.

One financial analyst, John M. Mason, recently offered an explanation that includes this analysis of what happened in the financial world during the decline of our industrializing phase:

But, in the developed world, the presence of lots and lots of liquidity means very little in the way of corporate capital investment. The environment of credit inflation, built up over the last fifty years of so, has created a culture of financial engineering in the business community and, consequently, corporations act differently now than they did when most of the current economic models were constructed. Government stimulus gets built into greater risk taking, greater financial leverage, and financial investment, like stock buybacks.

   (https://seekingalpha.com/article/4233178-supply-side-world-europe-well-united-states?ifp=0&app=1.)

So it seems to me that the financial guys—the wallstreet wheelers and dealers, etc—having running out of real new industrial infrastructure to invest in, turned to MBS schemes and CDO games in order to keep their game going. Instead of their oversized financial whirligig running on old Industrial Growth stimulants, they rigged it to run on the fumes thereof.

Now in a post-industrial age, we find ourselves as a species, Homo Developus, scratching our heads and wondering where do we go from here?

It just so happens that, in the wake of the Great Industrial Expansion of Planet Earth, there emerges a vast bureaucracy of Smart People—number crunchers, economic theorizers, technocrats, academics, programmers, bureaucrats, not to mention the mysterious ghosts of AI —who propose to reconstruct the detritus of the industrial age into a systemic quasi-social Union that will make sure everybody is taken care of.

And so I’m wondering, what’s the best way to administrate such a civilization?

What’s the best system for governing a federation of post-industrial nations?

What’s the the most effective strategy for managing a cushy, highly-developed Society?

What’s the most humane political structure to assure income and health for all citizens?

Should Europeans, for instance, appoint multiple layers of bureaucracy to enforce labor laws so that every person has a guaranteed income?

Should the State take control of business so that everybody gets a minimal piece of the pie?

And these philosophical, or sociological questions arise:

What motivation compels some individuals to seek opportunity and then develop that opportunity into abundance and prosperity?

What drives the go-getters to excel in economic pursuits? What motivates them to acquire work, money, property, resources, and then manipulate those assets into an overflow of wealth?

What incentive impels them to take care of themselves and their families?

On the other hand, what compels some other people to, instead,  take charge of bureaucratic agencies in order to administrate a Society that assures everyone a minimum of economic assistance?

What drives some analytical people to write laws and devise policies for systematically managing governmental bureaus to assure that everyone is taken care of?

Who is in charge here?

Who is going to run the world?

Will it be the go-getters, the pioneers, movers and shakers, developers, entrepreneurs, rule-breakers, industrialists, business mavens?

Or will it be the wonks who manage the world—the academics, the specialists, bureaucrats, rule-makers, policy-crafters, the tweakers of governmental largesse?

EURomeHdq

Consider Esther Lynch’s observations:

The ETUC has watched the rise in precarious working conditions in Europe—platform working, zero-hours contracts, bogus self-employment and so on—with deep concern. Research in the UK found that young people on zero-hours contracts, for example, were far more likely to report mental and physical health problems than their counterparts in stable jobs. A study by the University of Limerick in Ireland warned that people on non-guaranteed hours could become ‘trapped in a cycle of poverty which strengthens employers’ control’, generating a fear of being penalised if they raised grievances about working conditions. In response, the Irish government has taken steps to prohibit the use of zero-hours contracts, unless the employer can show a genuine business need. Guaranteeing transparent and predictable working conditions would have wide-ranging benefits, in terms of workers’ health, work-life balance and employee retention.

  (https://www.socialeurope.eu/tackling-insecure-work-in-europe)

What does the peaceful development of Civilization require? Management by one, or the other, of these two types? Or Both/and?

Is Civilization founded upon a principle of every man/woman for hmrself?

Or will it settle into BigBrotherSister administering a vast Guarantee for All?

Or something in between.

Keep your eyes open to watch what develops.

Smoke

From Digging to Digitization

October 26, 2018

The history of mankind has consisted of humans pulling stuff out of the ground and reworking it to suit our own survival purposes.

As people became more and civilized, and organized, the underlying survival instinct took a back seat to other motivations—gathering surplus, tribal organizing, development of skills and trades, cooperation and competition. . . eventually industry,  government, education, business, recreation, sports, entertainment.

The progressive developments of all these human activities required something that was necessary and common to all of them:

Resources.

Stuff from the earth itself. Raw material. Basic stuff:

Water, dirt, plants, rocks, ores, animals, hides.

As civilization moved forward, these basics were refined by us— reconstructed, manufactured to fulfill the requirements of human development.

Locomotv copy

The list of basic stuff (above) was revised to include:

Drinks, processed foods, fertilizer, livestock, leather, pets, tools, machines, lumber, metals, trains, cars, planes, appliances, telephones, radios, televisions, computers.

Computers–aha! With these, human development embarked upon a new phase.

Information itself becomes as useful (or at least we think it is as useful. . .) as all the other stuff that we’re using to make the world a more convenient place since the beginnings. Knowledge itself has became a resource. Yeah, though I dare say it—a commodity.

So we notice that over the course of human progress we did move steadily from pulling stuff out of the ground, and reworking it so that we could improve our life, to—

Pulling information out of our data machines.

Like it or not, this is the outcome of human history. We have come to this. Now development is largely about retrieving and using data files to improve life or capitalize upon its developments.

In the same manner as we traditionally removed natural resources from the ground and turned it into our good stuff.

And bad stuff. Let’s not forget that part. Our progressive high-tech life now generates bad stuff. Pollutants, toxins, noxious substances and, of course, shit itself, which still happens every day on a very large scale.

A consequence of our globally massive improvement project is that more and more persons are being driven into knowledge jobs.

Instead of all that plowing, digging, mining, constructing that we did all through history—more and more of us are typing, cataloging, programming, sitting at desks and watching computers do our so-called  work for us. Such activity (relatively, it is inactivity) becomes the order of the day for us as far into the future as many of us can see.

This digitized transformation of human development will bring us to some huge changes. I read an article about it this morning:

  https://www.ips-journal.eu/regions/global/article/show/the-false-hero-called-digitalisation-3050/n

Seeing as how we now have entered the age of information retrieval slowly overtaking natural resources recovery. . . seeing as how we gaze collectively at what seems to be the setting sun of human physical toil, I offer a tribute to the noble enterprise of Human Labor.

RailEngn

This tribute I offer in the form of a song. Gordon Lightfoot wrote it years ago.

It is one of the best songs ever written about the glory of human labor. You may listen to the songwriter’s rendition here:

      https://www.youtube.com/watch?v=PXzauTuRG78 

I also offer my own rendition of Gordon’s “Canadian Railroad Trilogy”, a song that I dearly love to sing.

    Gordon’s Railroad Trilogy

As you listen to both versions, imagine you are watching a sunset—the disappearing brightness of human labor accomplishment, being supplanted by a foggy dawn of. . . whatever is ahead for our collective endeavor.

King of Soul