Posted tagged ‘European Union’

EUROZONE’S BURNING, CONVENE GLOBAL FINANCIAL CONFERENCE!

September 15, 2015

EUROZONE’S BURNING, CONVENE GLOBAL FINANCIAL CONFERENCE!

 

Erle Frayne D. Argonza

 

Magandang gabi! Good evening!

Eurozone is burning. Before the flames would reach infernal levels, the contagion effects thereof burning the other regions of the globe, a global financial conference should be convened most urgently.

The purpose of the conference would be to configure a new financial architecture. Such a policy architecture would then as guidepost to all nation-states and regional alliances (EU, trade regimes such as ASEAN, NAFTA, Mercosur, others) to follow.

In the absence of such a policy architecture, palliatives can only emerge from the board rooms of incompetent bureaucrats. Among such palliatives now arising are: (a) Merkel’s solution to regulate hedge funds operations (financial derivatives); and, (b) Obama & US Congress’ regulations of speculative excesses of its stock markets.

Such palliatives are merely piecemeal solutions, even as they are too partial and parochial. They weren’t derived from a comprehensive paradigm that could have generated clear explications of the financial/economic crises of our times. They are reactive rather than responsive. Absent a policy architecture, and the piecemeal solutions will only have short-run impacts, and will be folded up when “things will get better.”

The top agenda that must be taken up are:

  • Criminalize speculative excesses. Speculation has fueled bubble economies worldwide. Financial predators have emerged from the oligarchic quarters up North, who have played havoc on the equities and currency markets. If it will turn out beneficial to ban and criminalize hedge funds operations later, then so be it. Such vulture funds have no place in a civilized world where we witness poverty and hunger rising.
  • Tobin Tax cross-border transactions. In no way should unbridled cross-border transactions be allowed without taxation. A minimum Tobin Tax of 0.75% on all such transactions should be imposed. Higher tax on derivatives and commodities futures of 1.5% can also be agreed upon. The accruing tax revenues will then be turned over to the United Nations and attached agencies for their operations & maintenance budgets.

 

  • Condone fraudulent/usurious debts. Debts that are fraudulent or too usurious, notably those lent to developing economies, should be completely condoned. The same economies can then have a fresh start and breathing space for anti-poverty, jobs, and related social development efforts.
  • Abolish the Jurassic Fund (IMF). It is now time to re-assess the International Monetary Fund, leading to its abolition. It does not represent the interest of the member-states, but is rather a middle man peddling the interests of global financial cartels. Its top executives come from the ranks of the same cartels. It had imposed austerity measures on many developing economies, causing more hunger, poverty, low wages, and unemployment. This Jurassic Fund (to borrow from Walden Bello) must go!

 

  • Identify financial ‘White knights’. Authentic financial ‘white knights’ from among the emerging markets should be properly identified and urged to expand their operations. These financial groups can offer long-term financing at very low interest rates. The end-users should be authentic market players that are engaged in the productive sectors, which will end the practice of ‘white knight’ financing (such as the Yen Initiative Package) that lent money to financial cartels which in turn re-lent them at higher interest rates.
  • Ban banks from speculative pursuits. Commercial banks and development banks, or all banks for that matter, must be banned from engaging in speculative pursuits such as hedge funds, commodities, and ‘hot money’ operations. Banks must service the productive sectors and must infuse moral philosophy in their organizational cultures.

 

  • Abolish stock markets. Stock markets have never been instruments for wealth redistribution. They are filled with dirty operators. It’s now time to abolish them. In their stead should be instituted a direct link between investors and market players in need of fresh money, thus abolishing the stock trader as ‘middleman’. Reforming the stock markets isn’t the answer, but rather their abolition.

 

  • Institute gold reserve standard. The gold standard of the past was abolished, in order that gold be hoarded by a few cartels up North. It is time to institute a new form of gold standard serving as stabilizer and securitization instrument for currencies. The standard will eventually lead to a re-institution of currency control policy which redounds to a more stable global economy in the long run.

 

Let it be reiterated, that should the present situation be allowed to go on, with piecemeal parochial solutions carved out at best, a bigger global catastrophe will be in the offing. A more colossal nightmare is now unfolding, which we hope the Northern countries’ incompetent bureaucrats can see at all.

[22 May 2010]

[See: IKONOKLAST: http://erleargonza.blogspot.com,

UNLADTAU: https://unladtau.wordpress.com,

COSMICBUHAY: http://cosmicbuhay.blogspot.com,

BRIGHTWORLD: http://erlefraynebrightworld.wordpress.com, ARTBLOG: http://erleargonza.wordpress.com,

ARGONZAPOEM: http://argonzapoem.blogspot.com]

EUROPE’S BURNING!

September 6, 2015

EUROPE’S BURNING!

 

Erle Frayne D. Argonza

 

Europe is on fire. Save for those who choose to be blind, the Union is going through an incendiary economic burn. How far will the economic burning go, whether it will spread to a larger continental inferno, no one can tell for now.

Before the EU’s creation, welfare policies were prevalent from east to west of the continent. Liberal reforms then arose, commencing with the Tory’s (Thatcher era) wholesale adoption and social marketing of the same, and copied by the conservatives and liberals of the continent alike.

By the turn of the century, upon the commencement of the Euro, liberal reforms already saw the uncontrollable ascent of predatory finance worldwide. Liberalized financial-capital markets paved the way for their immanence.

Among those instruments created by the predators was financial derivatives. To recall, a decade back the derivatives markets were already awash with exposures totaling over $150 Trillion, with 36% of these in the hands of British financiers while 15% were in Americans’ hands.

By 2001, the alarming projection was leaked out that derivatives will be inflated to exceed $350 Trillions within the new decade. At a time when the global economy was producing past the $40 Trillion in Gross World Product or GWP, it was sheer madness to consider debt papers of past $350 that could meltdown the globe in case of a gigantic bubble burst.

Europe was already flat on its back for a straight two (2) decades since after the collapse of the Soviet Union. Periodic stagflations and recessions have seen the rise of poverty incidence and, consequently, the re-emergence of neo-fascist movements.

Being strongly tied up to the U.S. economy, it was not surprising to realize that a contagion of the U.S. recession will surely hit Europe, which did happen. The ugly side of the formula was the aiding of ailing banks that were badly affected by the crisis, an intervention that was flawed and immoral as it entails using taxpayers’ money to aid criminal bank speculators.

Barely out of the U.S. contagion effect, Brussels was shocked to see that a new fire had started within the Eurozone— Greece to be exact. As this was happening, Spain also began to sneeze & cough, as some of its own banks (notably Santander) spiraled down bankruptcy scale. Other member-economies were also having their own financial crucifixions going by the early part of this current year.

If we diagnose what’s going on in the financial sectors of member states, we can easily pinpoint banks as hotspot fire sources. They were heavily into speculative pursuits, with enormous exposures to derivative operations.

Just exactly how that happened can be traceable to certain acts in the North by the mid-80s. Commodities markets have sprung up on that decade, even as a global recession took place then, threatening OECD economies. Liberal reforms were already permeating diverse sectors, and within the backdrop of liberalization, financial derivatives and equivalent portfolios were launched in mass scales.

Banks shed off their previous stance of inhibiting themselves from speculative pursuits. Soon they’d find themselves investing into every speculative games they could lay their hands into, inclusive of hedge funds operations.

Now, to fast track to the present, economists estimate that EU’s aggregate derivatives are within the range of $180-$200 Trillions, estimates that seem conservative. Measure this against the gross domestic product of EU at $13 Trillions, and you would be driven to ask: just exactly where will Europe get the funds to pay the hedged financials in case of bursts and massive bankruptcies?

If all of the hedge funds investors would ask for a forced payment of their total of, say, $200 Trillions more or less, who would pay for such debts? Where will the money come from? Is it morally right to extract taxes from European workers to pay up for the dirty debt papers in case? Is it likewise morally right to impose wage cuts on workers who were not the culprits in the virtual economy game in the first place?

Concerned Europeans should better rethink the Euro and ask whether the new currency really worked for their welfare. It is now clearer that the Euro was a sell-out idea and project, that it was launched to satiate the insatiable pockets of greedy financiers represented by the top financial houses there.

And Europeans better see how silly it is to allocate taxpayers’ money worth $1 Trillion to bail out ailing banks and industries hit by the rising meltdown. For measured against total debt papers of $180-200 Trillions, $1 Trillion would be ridiculously paltry.

Yet another ridiculous intervention is the austerity measure imposed by the IMF on Greece. We’ve had so many precedents of the deleterious effects of such measures on developing economies that aimed at eventually graduating from IMF programs as a salvation measure in the short run. While emerging markets are getting out of a burning house (IMF & austerity measures), Greece voluntarily entered this house. Unbelievable!

As per reports reaching my focals, Germany had the greatest exposures to Greece’s banking sector, with exposures running to hundreds of billions of euros. British financiers, on the other hand, have their hands full in Spain’s banks.

It isn’t difficult to forecast that the fire in Greece could spread to other eurozone economies. Not even the UK, which decided to stay out of the eurozone, will be spared from the bonfire. Spain is almost there now, and who knows what country will be next.

If banks and industrial conglomerates will simultaneously burn in all of the member-states of the eurozone, with total aid claims of past the GDP of $13 Trillions, then Europe will be on the brink of a continental inferno.

Concerned readers better think for yourself whether Brussels and the bureaucrats do have the right answers to the raging problems of Europe. Poverty incidences are now hitting past the 20% mark in member countries, while massive lootings of the financial and currency markets by predatory financiers take place every day in the continent.

Well, let’s all wait and see for what happens. Let us hope that a mad Nero bureaucrat wouldn’t appear to orchestrate the burning farther to infernal scale. That would bring a new nightmare to the whole planet if it happens.

[Philippines, 20 May 2010]

BONAPARTISM: ‘TECHNOTRONIC’ CAPITALIST STATE IDEOLOGY

October 2, 2014

BONAPARTISM: ‘TECHNOTRONIC’ CAPITALIST STATE IDEOLOGY
Erle Frayne D. Argonza

Hail Bonaparte! Hail Empire! Hail new capitalism! Hail oligarchic Gods of Olympus! – Tomorrow’s slogans

Bonaparte is back today, I see him alive again. I don’t mean the personal Napoleon Bonaparte of yesteryears, I mean the state system built by Him the Emperor par excellence. Bonapartism is the hyper-convergence of all totalitarian systems of the past to the present. Old state ideologies are dying, some are already dead in fact (Old Bonapartism, Bolshevism), but a hyper-convergence of the totalitarianisms is happening….That convergence will congeal in New Bonapartism, the state ideology of the era lasting from World War III through those centuries of ‘technotronic’ capitalism of the morrows.

Let me clarify that ‘state ideology’, or the doctrine of state that will justify its essential governance, structures & rules, nay its philosophy, is distinct from mass ideology. The mass ideologies forthcoming may vary from one country to another, such as China’s seeming Marxist-welfare statist fusion, and the rising environmentalism that could be tomorrow’s most popular.

Mass ideologies can be allowed to germinate and take hold among the masses, provided that they support the state formation in a ‘social contract’ of corporatism. In the future population of cyborg Manchurian Candidates, mass ideology will be irrelevant and unnecessary, as behavior will be pre-planned and/or pre-programmed, and re-programmable.

What I am referring to at this juncture is STATE IDEOLOGY or philosophy. As you can see above, this New Bonapartist ideology may not have a foreign policy facet in it, since ‘foreign’ and ‘domestic/national’ has already been broken by globalization. The future state will be a GLOBAL STATE, remember, so the term ‘foreign’ is of noxious impertinence for a globalized or borderless state.

‘Foreign’ could mean, later, those states of intelligences from planets across the Milky Way and elsewhere, but let me not touch on that. I’d focus on the continental and global states, such as the EU, forthcoming North American Union, perhaps an Asia-Pacific Union too, and the Planetary Union or whatever.

Let me go through the essentials of Bonapartism, culling the premises from the pass but re-constructing it for the emerging context. Take note of the following briefer:

• Centralized, Authoritarian Governance: The former Soviet Union, Nazi Germany, Phallangist Spain, and today’s China provided the models for this one. Napoleon Bonaparte only partly succeeded in experimenting on this one, and then he was overthrown. The New Bonapartist state will be sustained, like China’s, and will last for nigh 200-300 years perhaps as far as visible future is concerned. State Terror will be official ‘stick’ mechanism.

• Strong Central Institutions: Centralized authority doesn’t mean strong institutions. This is where China is weak. The Emperor Bonaparte of tomorrow will ensure that institutions will be (a) centralized and (b) strong. The link between the Continental and Platenary states will be a continuous one. Likewise will the thread of governance between the Planetary state and the local region- and city-states, the building blocks of ‘technotronic’ capitalist society.

• Strong Central Financial Institutions: How could one maintain an Empire without strong global bank, strong global currency, strong securitization system (gold standard will return)? Bonaparte knew well the importance of strong national banking for sustaining his Empire and wars. The Emperor Bonaparte of tomorrow will just need to replace ‘national’ with ‘global’ and the formula is complete. Yes, the gold standard is forecast to return, and is bound to back up the financial-monetary operations of the global state. Yes too, a global currency will be instituted, and will be strong as it is backed up by ‘global gold’ or precious metals/crystals and global reserves instruments.

• Strong Global Army/Police: As instruments of state terror, a (a) global army and (b) global police will be instituted. No such army nor police exists today, and necessity dictates that they will arise tomorrow. The individuals and units of these ‘stick’ institutions will be loyal only to the global state. Beyond the 2050s, cyborgs and robots will constitute the main forces of these enforcement ‘sticks’.

• ‘Bombard the Old World’ of Nations: Bonaparte’s favorite cliché is coming back. Napoleon’s old world was the kingdom, the nascent world was the nation. Today’s ‘old world’ is the nation-state, and the nations will be literally bombarded. In a sweeping World War III scenario, as much as 90% of the nations of today (of which there are 200+) will be dismantled. Those that will resist will face the wrath of the global state before 2050. Most likely, no more nation will exist beyond 2050. The new world of region-states and city-states will be in place. This new world will be the New Feudalism, as discussed earlier.

I guess I need to end there. Just five (5) features, remember. It is so easy to note them. They were Bonaparte’s formula for governance in the past, and they will be the standard formulas for the future ‘technotronic’ capitalist state. In previous articles, I already discoursed that capitalism cannot be revived without totalitarian tyranny, so I didn’t expound on that facet here. Let me now close the article at thus juncture.

Hail Bonaparte! Hail Empire! – tomorrow’s slogans

[Philippines, 23 August 2008]

SPARTACUS UNVEILED: TROUNCING BONARPIST EUROPE

August 17, 2010

SPARTACUS UNVEILED: TROUNCING BONARPIST EUROPE

Erle Frayne D. Argonza

Hail Bonaparte! Hail New Rome! Hail the Empire!

Such slogans could very well be the reverb calls across Europe any one of these coming months. Bonaparte is coming back to Europe, beginning with the consolidation of the union and the implementation of a state ideology based precisely on the centralized institutions that Napoleon Bonaparte seeded during his halcyon days.

New Rome has arisen, with its center at Brussels. Its ‘wings’ are EU and USA (with Canada its client-state), two continents that face each other across the Atlantic like select guardians of the West. As already elaborated by this analyst in couples of articles, Bonapartism in a new form is the emerging state ideology of New Rome that is sometimes referred to as the 4th Reich.

“Bombard the old world to perdition” was the late Emperor’s agenda and directive on his enthused army. The old world today refers to the nation-states, and their destruction would mean the return to the powerful cities plus regions that would altogether bow obeisance to Brussels.

The new twist in Europe today, when it is burning economically upon the burst of bubbles in the de-industrialized south (Greece began it all), is the entry of the Jurassic Bank—the International Monetary Fund—into the Bonapartist game of the oligarchs. A salvation agenda comprising of saving ailing banks and imposing austerity measures on creditor countries is the swagger of the rather thuggish dinosaur, as we observed recently.

When a dinosaur institution is called upon to salve Europe’s problems, it is clear that the ‘handwriting on the wall’ of the old world of European nations has come. With cities and regions demanding return to old days of social privileges (evaporated by austerity measures), more riots are anticipated, thus justifying more draconian gendarme tactics enforced upon angry wage workers and professionals.

If the violent protests will continue and reach ‘critical mass’ in both southern and northern sectors of the union, then the rationale for a continental police state will arise. A New Bonaparte, whoever may this politician be, shall be catapulted phoenix-like to the nadir of totalitarian power, with the support of the union’s central and national parliaments.

As you can see, Bonapartism without a Bonaparte is an oxymoron. The maelstrom in the continent will continue to build up until the condition will be ripe for a totalitarian gendarme state. The maximum agenda of a New Bonaparte would be no less than “bombard the old world” of nations: eradicate them and replace them with pre-configured regions.

Such a move will deter whatever re-actions may come from the citizens to re-strengthen the bargaining positions of their respective nations and go back to the old national currencies. Necessarily, the assets of the national armies will be re-directed to Brussels that will serve as the central command, and the assets will include the nukes of UK and France.

Since the Roman pathos or spirit has been revived anew, with war pursuits (notably versus New Persia) on the menu of hawkish adventurisms, then Europeans can only but hope for the presence of a Mark Anthony who can battle the Emperor from within Brussel’s institutions. Wishful thinking, as in a totalitarian setting all the Mark Anthony wannabes will be either jailed or terminated. Like Mark Anthony of the last days of the Roman republic, dead, caput!

In the absence of a Mark Anthony in the continent, then Europeans can best leverage their strength via a new Spartacus. Let the Spartacists gel as a gigantic movement from the diverse grassroots and working class movements in the continent, and rest assured they can be the ones that can form the resistance.

Europeans better galvanize solidarity the quickest now as an anti-fascist front versus a determined Bonapartist oligarchy & technocracy. There is no better time to revive Spartacus than now. Reviving Spartacus after the Empire and neo-Bonaparte are in place will prove to be counterproductive and defeatist.

I hope that Europeans would wake up fast to recognize the dreaded dragon of Bonapartism rising so rapidly in their backyard. Only they can stop the new fascism from consolidating further and installing a new Emperor Bonaparte.

[Philippines, 30 July 2010]

[See: IKONOKLAST: http://erleargonza.blogspot.com,
UNLADTAU: https://unladtau.wordpress.com,
COSMICBUHAY: http://cosmicbuhay.blogspot.com,
BRIGHTWORLD: http://erlefraynebrightworld.wordpress.com, ARTBLOG: http://erleargonza.wordpress.com,
ARGONZAPOEM: http://argonzapoem.blogspot.com%5D

SCUTTLE EU NOW, BEFORE 4TH REICH OPTION AWAKENS!

June 4, 2010

Erle Frayne D. Argonza

Magandang hapon! Good afternoon!

I have no wish to intervene in the internal affairs of Europe. However, judging by the flow of events in the continent, from the signing of the earlier treaties through the monetary union and the Lisbon Treaty, there has been a clear sign of concurring agreements without the benefit of public consensus.

True, there were debates about the formation of the Union from its earlier days as an energy coalition through the birth of the Eurozone and finally the Lisbon Treaty. But the signing of treaties has been a monopoly of bureaucrats and technocrats who do not the least show accountability towards the great mass of struggling Europeans. 

Now that the Eurozone is in trouble, which further threatens the continent with a gigantic crash that could be worst than the USA’s, the prospects of more Draconian measures of implementation and austerity measures imposed on member countries are getting more real. 

Let us just hope that the increasing chaos of events in the EU won’t lead to the dreaded hyper-inflation, an ailment that crippled the late Weimar Republic and paved the way for Hitler’s rise to power. Already, the doors of Europe are opening for new fascist movements arising, movements that could very well serve the interest of the bureaucrats & technocrats working for the fat financiers led by the House of Rothschild. 

If there is any unsolicited advise I can offer to the Europeans, it is this: scuttle the Union now while there’s still time. A gigantic maelstrom is gathering in your backyard, which could lead to the rise of a 4th Reich of sorts. 

Let me share to you a past blog article about the 4th Reich possibility. 

[Philippines, 24 May 2010] 

4TH REICH IS A TRANS-ATLANTIC 2-HEADED TOTALITARIAN MONSTER

 

Erle Frayne Argonza y Delago

Good morning, Fellows across the globe!

Let me continue to write awareness-raising materials about peace, cooperation and development, by focusing on the machinations of the financier oligarchs. The Empire is rising again, the logic being that it is a most fit governance machine for global oligarchic games and forthcoming conflicts.

Guessing gamers have been busy releasing speculations about the next financiers’ great war, and the state machinery that will undertake it. Lacking sophistication in political economy, the guessing gamers end up with superstitious sloganeering and fear-mongering, or reactive behaviors that hardly possess merit and serious attention by the more adroit minds of younger generations.

Following the historic patterns of Empire formations, it has always proved fruitful to wage synchronized conflicts and fatten the oligarchic purses in the process, if an empire formation would do the hot-work jobs for the oligarchs. The last Empire that did the massive aggression for the Anglo-Dutch oligarchs was dubbed as 3rd Reich by its created abomination, Hitler & Nazi movement.

The same Anglo-Dutch financiers, who control at least 80% of the world’s total financial flows, are itching to create a 4th Reich totalitarian state. It is time for a great war, the result of which will flatten the economies and enterprises of contending nations. The wrecked enterprises will then be bought at dirt cheap price by the same oligarchs, and the flattened economies funded back to life by the same financiers.

The question is, just exactly what oligarchic state formations to employ? The EU and USA each produce over 22% of the world gross product, or altogether produce 45% of GDP. The Anglo-Dutch financiers, on the other hand, control over 80% of the global financial flows. Using such data, it is very easy to see the congruence of continental economies and financier interests.

In my analysis, using a combination of institutional analysis and political economy, the combined EU-USA force would be excellent for creating the draconian 4th Reich. Of course, the possibility of a North American Union can be examined, but such a Union doesn’t have the purse power to leverage political strength, do understand this. On the other hand, the EU cannot impose its will on the USA without public dissent being aroused to hell fires, and so no USA-EU political integration is in the offing.

The web of institutional arrangements will see a mega-alliance of USA-controlled North America and a Brussels-based European Union. The trans-Atlantic alliance is a last-ditch effort of the same financiers to exhibit muscle power over the planet, and only the USA-EU  axis remains as the loyal consenter to the financier machinations.  Japan can still veer away from the axis, while the emerging markets’ giants—China, India, Brazil—are beyond the ambit of such machinations.

The institutional plan calls for the implementation of the final treaty in Europe, the Lisbon Treaty, that will see the advanced unification of the continent. Synchronically, a North American Union, with a common currency called Amero, will replace the NAFTA, complete the political unification process, and form the American bulwark of the new fascist axis. That done, the 4th Reich will be in place, rock-solid in armaments and awash with liquidities for more ambitious, gigantic war efforts.

Part of the governance innovations will be to abolish nations in both continents. Region-states will rise to replace the nations, each region being almost of equal population and size. With no more nations in Europe, the nuclear arsenal of France and UK will be placed in the custody of Brussels, thus transforming Brussels into a nuclear power overnight.

Transformed into police states, both continents will then wage population-control campaigns in the neighborhoods. Gangster groups will logically be deputized to augment police in searching for guns, drugs, insurgent evidences, terrorist cells, petty criminals, and other perceived enemies of the state. Those young ones engaging in binge drinking and sex orgy parties will also most likely be apprehended.

To accelerate public compliance toward the new order, riots can be engineered in cities across both continents. Food price hikes, oil price hikes, massive unemployment, social welfare cuts, overnight hyper-inflation are the most contentious issues that easily inflame quiet neighborhoods into angry urban mobs. Any high school student taking up a subject on sociology can very facilely see this possibility today. It has already been tried and tested across the globe in fact most recently.

While the continental backyards are being provided draconian order by police forces, the military assets will then flex their muscles for huge wars overseas. To ensure that competing regions and continents will be mowed down fast, inter-regional wars will be engineered. The Sunni-Israel versus Iran-Shiite war is now on the pipeline, waiting for a go-signal, a conflict that will see the weakening of the Semitic military establishments and economies, thus paving the way for less costly involvement there.

Other continents will surely see their own war fireworks fanned to the maximum most likely. It would be an instructive work to analyze and forecast the shaping of events there. For instance, the China-Taiwan and inter-Korean conflicts may ensue again on their 2nd phases. Japanese aggression may also be pursued on a 2nd phase, which could see the Japanese islands devastated with nukes combined with the Tesla Earthquake Machine to put an abrupt end to its zealous militarism.

To cap the article, it is a Trans-Atlantic 4th Reich that is now fast rising. How fast the citizens of both America and Europe can neutralize the abominations now shaping up in their backyards remains to be observed. One this is sure here: it doesn’t matter who will be president of the USA or EU. The financiers and their paid technocratic-political subalterns have already ensured that the oligarchy is in control of the situation.

[Writ 22 June 2008, Quezon City, MetroManila]

‘LATE’ CAPITALISM CRASHING DOWN ITS DEATH BED

May 30, 2010

Erle Frayne D. Argonza

Good evening!

The events in the Eurozone are now getting to be more alarming. Forecasters are now claiming that another round of recession is in the offing, as the bubble burst that began in Greece will spread to Spain, Ireland, and other member-states of the EU.

Will liberal capitalism continue to live a life that seems to hang in the balance? Or will capitalism need to restore itself through totalitarian means? What’s so wrong with the system that it just can’t be sustained enough?

Let me share to you past blog writings about the subject: ‘mad economics’ and the ‘demise of liberal capitalism.’

[Philippines, 23 May 2010]

‘LATE’ CAPITALISM ENDS IN CRASHING BLOW POST-‘MAD ECONOMICS’

Erle Frayne Argonza

Good afternoon!

At this moment, I’m sipping coffee contained in a pack that is sold for worth P130, or $3.00. The pack is one of the domestic brands of brewed coffee blends, ready for the drip coffee maker, of the Arabica and/or Robusta varieties. In economic parlance, this coffee is a commodity because (a) it was intended for exchange and not for the coffee producer’s consumption alone, and (b) money was used to acquire (purchase) it.

I have such deep fondness for coffee, as I acquired my coffee-drinking behavior as a childhood habit yet. In my hometown of Tuguegarao (city), Cagayan province (North Philippines), coffee beans were grounded into powder form and sold right inside the ‘wet’ market, was brewed using the local decoction techniques, and was consumed by people of all ages from pre-school to senior’s age. That was then, and that was how I learned to drink this beverage at age 5 more or less. I was hooked to the habit since then, even as I continued to drink milk that I still do till now.
Both coffee and milk are among my health formulas, and both are commodities.

The question I’m asking now is, will commodity-based economics survive the times ahead? Both coffee and milk will survive for sure, but will the money economy that underpins them survive as well? As to the broader world system of capitalism, will it survive too or is it in fact on its death knell today?

Capitalism was the last of the world systems that embodied the ‘money economy’ to which it properly belongs. With the opening of the 20th century, the socialist world system appeared on the social landscape and attempted to serve as an alternative to capitalism, but this experienced its early demise as its implementers found out that it cannot be sustained after all. Both capitalism and socialism are embodiments of the ‘money economy’ as it later turned out to be, they are just but two sides of the same coin: the ‘money economy’.

Socialism is gone, and no matter what attempts there may arrive to survive it in some other forms, this variant of the ‘money economy’ is gone. Now capitalism is all alone, and it is getting more real than virtual that it too is bound to crash a catastrophic end, and with its demise, the “last of the (economic) Mojicans” is bound to disappear (my apologies to Mojicans if my note sounds ethnically incorrect). And with capitalism’s demise, the whole of the ‘money economy’ folds up like unto a book that had reached its last chapter, and deserves more to be consigned to the archives of history.

The Frankfurt school thinkers, notably Jurgen Habermas, cogitated that capitalism’s life span was extended somehow, and was dubbed as ‘late’ capitalism in this last phase of the world system. In this phase, state planning and interventionism were infused into the system to extend its life. Before ‘late’ capital came the mercantile, free enterprise, and monopoly phases of this world system. Will there be another phase to capitalism after ‘late’ capital?

Before I answer that extension of life span, let me stress that ‘late’ capitalism shall end in the following process and manner:

· The re-introduction of liberalization—of free market and free trade principles—into ‘late’ capital shifted engagements away from production, the real foundation of the economy, to the sphere of predatory finance, thus producing the gargantuan ‘bubble economy’. The ‘physical economy’ of production transmogrified into the ‘virtual economy’ that produces no real value other than imaginary or delusional values. It is ‘mad economics’ in operation, no longer the ‘rational economics’ of mercantilists, classicists and neo-classicists.

· The ‘mad economics’ led to the yawning gap between actually produced values and the aggregates of financial derivatives and debts combined, to the extent that the former shrinks at a rapid rate relative to the latter. As bubbles burst from one commodity sector to another, leading eventually to a crisis of gargantuan proportion, all the more will production shrink, unable to produce values that can input into the demand functions for fresh money to pay for aggregate credits, primary debts, secondary debt obligations, and so on.

· The crisis will then move on to the further shrinking of production, tightening of credit sources, and hyperinflationary situation in utilities (notably gas & power), food, base metals and other vital commodities. Total economic collapse results from the foregoing.

· The economic collapse then leads to social unrests, turmoil, upheavals, civil wars, food wars, water wars, and possibly intercontinental wars such as another 3rd world war. The clash of world powers and their surrogate emerging markets will become the flames of a possible long war akin to the 30 Years War (c.1618-48).

Let me now end at that instance. Suffice me to proclaim that the death knell of ‘late’ capitalism and the whole of the ‘money economy’ of the last 2000 years or so are ending. The ‘non-cognitive economics’ of the Roman to feudal era, the ‘rational economics’ of the Renaissance to monopoly capital era, and the ‘mad economics’ of ‘late’ capital were markedly the underpinning mediation processes of that entire 2000-year epoch. The epoch and its last phase of capitalism is rapidly drawing to a close.

[Writ 22 August 2008, Quezon City, MetroManila.]

CAPITALISM’S DEMISE: WHAT WENT WRONG?

Erle Frayne Argonza

To all fellow men and women out there who may have deep fondness for the liberal capitalist model of economic adaptation, I hope that you can make some adjustments in your cognitive banks. Capitalism is not a permanent facet of human life, but merely one among various epochs that will come to pass. Only impermanence is sacrosanct in the cosmos, so please refrain from singing hallelujah to a world system that is on its death knell as I articulated in a previous article.

And please refrain from swallowing hook-line-&-sinker the contentious propaganda of Francis Fukuyama about the ‘end of history’, that accordingly history had concluded with the galvanization of liberal capitalism, that history makes no more sense. Fukuyama’s theory is a slapstick narrative of hyper-valuation of the ‘mad economics’ of late capitalism and hypo-statization of reality that has no relation at all to the real in the world out there. Fukuyama had taken as ‘real’ what is actually ‘virtual’, and froze time much like unto a fairy tale of timelessness, of history-less Nietzschean moment that is fit more for infants than for adult humans.

Fukuyama epitomizes the ‘mad economics’ of all those Pied Pipers of the global oligarchy for whom he works, and his discourse is akin to the ‘mad discourse’ so described by the late Michel Foucault. The ‘mad economics’ of Friedman, Hayek, Fukuyama, and all those technocrats who serve as processors and bagmen for the global oligarchy, is precisely symptomatic of that colossal ailment of a world system, and as we all know, madness can never salve ailments but rather hasten the system’s death. Caput! Blow your horns, prepare dirges to this Dead One!

Unless that you yourselves have become maddened by the seemingly infinite monies flowing unto your purses as you are among the beneficiaries of ‘late’ capital, unless that you are indeed now suffering from combined maladies of sociopathy and schizophrenia, unless that sanity had departed from thee forever, please heed the last plea of your own conscience where sanity had retreated: CAPITALISM IS DEAD! No amount of propagandizing, of contorted interpretations, can ever change the course of history at this juncture, as we are all headed for a TOTAL SYSTEM COLLAPSE in the months ahead. Read that please: MONTHS AHEAD, not years ahead.

What went wrong with capitalism? I’m sure all of you fellows knew what went wrong, do I even need to answer that? Your previous thinker mentors, among economists and sociologists, forewarned you all of the forthcoming demise of capitalism, but you paid nary an attention to those brilliant minds as you were so engrossed in your ‘conspicuous consumption’, behaving more like some infantile EATERS or as anthropoids rather than as thinking and spiritually evolving humans. You are all very much human, so please consistently behave like one, and begin by listening to the Inner Voice of your conscience, for that voice is your soul’s.

Let me summarize the diagnostics, forewarnings and/or prophecies of our thinker mentors from the West, and I’d stress WEST because there are some other thinker mentors from the EAST and SOUTH whose peregrinations are so recondite they are not so easily digestible. Let me just stress the WEST as this is what is common to us all. So let me re-echo the thinkers and their theories:

· Karl Marx & Friedrich Engels: The internal contradictions between the private nature of capital (ownership of means of production) and the social nature of production. The ‘crisis of overproduction’ and the ‘law of the falling rate of profit’ are attendant patterns. Social revolution results, then the alternative society will be constructed.

· Max Weber: Industrial capitalism’s granite product, the bureaucracy, led to dehumanization. He never forecast though whether this dehumanizing system can be sustained—but please read between the lines. (His contemporary Emile Durkheim had a similar observation about ‘anomie’ or normless state of urban/industrial society.)

· Thorsten Veblen: The end-phase of industrial capitalism is markedly pathological. ‘Conspicuous consumption’ is the disease of this phase, the toxic behavior from the ruling class that later filtered down to the emerging middle class.

· Joseph Schumpeter: The internal contradiction between the desire for profit and the revolutionary character of innovation. The demise of capitalism will see the possibility of the technical class taking over society and build that alternative system later.

· Daniel Bell: The ‘post-industrial’ society had already been born right inside capitalism. A distinct modality in itself, post-industrialism will eventually prevail in a system that isn’t capitalist (or money economy) but rather knowledge-based. The ‘service worker’ had arrived on the social landscape, the prototype class of the future.

· Theodore Adorno, Jurgen Habermas, Herbert Marcuse: ‘Late’ capital is characterized by the pervasiveness of ‘instrumental reason’, where reason is used to justify the non-rational (‘madness’ in Foucault’s argot), where state planning/intervention was infused into a system that scorned intervention.

· Alvin Toffler: Both capitalism and socialism are based on hoarding, both are variants of the same industrial society of yesteryears, both are based on ‘2nd wave’ capital-intensive technologies and non-renewable energy sources. The ‘post-industrial’ society is altogether distinct, isn’t based on hoarding, production-consumption (‘prosumer’) is based on ‘3rd wave’ knowledge-intensive technologies and renewable energy sources, knowledge cannot be hoarded.

I need not articulate further, do I? They all converged on one theme: capitalism is transitory, it bred social maladies (alienation, dehumanization, anomie, conspicuous consumption,…), is systemically flawed, and will be dismantled at sometime in the future.

No matter how delimited their theories maybe, as they all proceeded from certain perspectives (they were all ‘paradigm’-based in the jargon of Thomas Kuhn), they all proclaimed—in either tacit or explicit fashion—the coming demise of the system. They weren’t as silly as Fukuyama who popularized seemingly ‘satanic verses’ (distorted precepts) about a non-changing, permanent economic landscape called ‘liberal capitalism’, but were rather so adroit at social forecasting that they saw a vision of the future as they were articulating on their empirical observations of the present society.

So, fellows out there, prepare for the months and years ahead. We are headed towards those stormy months, years, maybe even decades. How the future society will come to shape is not easy to forecast. “Something blurs the Force, darkens our sight of the future,” declared a Jedi Master in the Star Wars cinema fame. Let me end right here.

[Writ 22 August 2008, Quezon City, MetroManila.]

EUROZONE’S BURNING, CONVENE GLOBAL FINANCIAL CONFERENCE!

May 28, 2010

Erle Frayne D. Argonza

Magandang gabi! Good evening!

Eurozone is burning. Before the flames would reach infernal levels, the contagion effects thereof burning the other regions of the globe, a global financial conference should be convened most urgently.

The purpose of the conference would be to configure a new financial architecture. Such a policy architecture would then as guidepost to all nation-states and regional alliances (EU, trade regimes such as ASEAN, NAFTA, Mercosur, others) to follow.

In the absence of such a policy architecture, palliatives can only emerge from the board rooms of incompetent bureaucrats. Among such palliatives now arising are: (a) Merkel’s solution to regulate hedge funds operations (financial derivatives); and, (b) Obama & US Congress’ regulations of speculative excesses of its stock markets.

Such palliatives are merely piecemeal solutions, even as they are too partial and parochial. They weren’t derived from a comprehensive paradigm that could have generated clear explications of the financial/economic crises of our times. They are reactive rather than responsive. Absent a policy architecture, and the piecemeal solutions will only have short-run impacts, and will be folded up when “things will get better.”

The top agenda that must be taken up are:

  1. Criminalize speculative excesses. Speculation has fueled bubble economies worldwide. Financial predators have emerged from the oligarchic quarters up North, who have played havoc on the equities and currency markets. If it will turn out beneficial to ban and criminalize hedge funds operations later, then so be it. Such vulture funds have no place in a civilized world where we witness poverty and hunger rising.
  2. Tobin Tax cross-border transactions. In no way should unbridled cross-border transactions be allowed without taxation. A minimum Tobin Tax of 0.75% on all such transactions should be imposed. Higher tax on derivatives and commodities futures of 1.5% can also be agreed upon. The accruing tax revenues will then be turned over to the United Nations and attached agencies for their operations & maintenance budgets.
  3. Condone fraudulent/usurious debts. Debts that are fraudulent or too usurious, notably those lent to developing economies, should be completely condoned. The same economies can then have a fresh start and breathing space for anti-poverty, jobs, and related social development efforts.
  4. Abolish the Jurassic Fund (IMF). It is now time to re-assess the International Monetary Fund, leading to its abolition. It does not represent the interest of the member-states, but is rather a middle man peddling the interests of global financial cartels. Its top executives come from the ranks of the same cartels. It had imposed austerity measures on many developing economies, causing more hunger, poverty, low wages, and unemployment. This Jurassic Fund (to borrow from Walden Bello) must go!
  5. Identify financial ‘White knights’. Authentic financial ‘white knights’ from among the emerging markets should be properly identified and urged to expand their operations. These financial groups can offer long-term financing at very low interest rates. The end-users should be authentic market players that are engaged in the productive sectors, which will end the practice of ‘white knight’ financing (such as the Yen Initiative Package) that lent money to financial cartels which in turn re-lent them at higher interest rates.
  6. Ban banks from speculative pursuits. Commercial banks and development banks, or all banks for that matter, must be banned from engaging in speculative pursuits such as hedge funds, commodities, and ‘hot money’ operations. Banks must service the productive sectors and must infuse moral philosophy in their organizational cultures.
  7. Abolish stock markets. Stock markets have never been instruments for wealth redistribution. They are filled with dirty operators. It’s now time to abolish them. In their stead should be instituted a direct link between investors and market players in need of fresh money, thus abolishing the stock trader as ‘middleman’. Reforming the stock markets isn’t the answer, but rather their abolition.
  8. Institute gold reserve standard. The gold standard of the past was abolished, in order that gold be hoarded by a few cartels up North. It is time to institute a new form of gold standard serving as stabilizer and securitization instrument for currencies. The standard will eventually lead to a re-institution of currency control policy which redounds to a more stable global economy in the long run.

Let it be reiterated, that should the present situation be allowed to go on, with piecemeal parochial solutions carved out at best, a bigger global catastrophe will be in the offing. A more colossal nightmare is now unfolding, which we hope the Northern countries’ incompetent bureaucrats can see at all.

[22 May 2010]

[See: IKONOKLAST: http://erleargonza.blogspot.com,

UNLADTAU: https://unladtau.wordpress.com,

COSMICBUHAY: http://cosmicbuhay.blogspot.com,

BRIGHTWORLD: http://erlefraynebrightworld.wordpress.com,

ARTBLOG: http://erleargonza.wordpress.com,

ARGONZAPOEM: http://argonzapoem.blogspot.com]

EUROPE’S BURNING!

May 25, 2010

Erle Frayne D. Argonza

Europe is on fire. Save for those who choose to be blind, the Union is going through an incendiary economic burn. How far will the economic burning go, whether it will spread to a larger continental inferno, no one can tell for now.

Before the EU’s creation, welfare policies were prevalent from east to west of the continent. Liberal reforms then arose, commencing with the Tory’s (Thatcher era) wholesale adoption and social marketing of the same, and copied by the conservatives and liberals of the continent alike.

By the turn of the century, upon the commencement of the Euro, liberal reforms already saw the uncontrollable ascent of predatory finance worldwide. Liberalized financial-capital markets paved the way for their immanence.

Among those instruments created by the predators was financial derivatives. To recall, a decade back the derivatives markets were already awash with exposures totaling over $150 Trillion, with 36% of these in the hands of British financiers while 15% were in Americans’ hands.

By 2001, the alarming projection was leaked out that derivatives will be inflated to exceed $350 Trillions within the new decade. At a time when the global economy was producing past the $40 Trillion in Gross World Product or GWP, it was sheer madness to consider debt papers of past $350 that could meltdown the globe in case of a gigantic bubble burst.

Europe was already flat on its back for a straight two (2) decades since after the collapse of the Soviet Union. Periodic stagflations and recessions have seen the rise of poverty incidence and, consequently, the re-emergence of neo-fascist movements.

Being strongly tied up to the U.S. economy, it was not surprising to realize that a contagion of the U.S. recession will surely hit Europe, which did happen. The ugly side of the formula was the aiding of ailing banks that were badly affected by the crisis, an intervention that was flawed and immoral as it entails using taxpayers’ money to aid criminal bank speculators.

Barely out of the U.S. contagion effect, Brussels was shocked to see that a new fire had started within the Eurozone— Greece to be exact. As this was happening, Spain also began to sneeze & cough, as some of its own banks (notably Santander) spiraled down bankruptcy scale. Other member-economies were also having their own financial crucifixions going by the early part of this current year.

If we diagnose what’s going on in the financial sectors of member states, we can easily pinpoint banks as hotspot fire sources. They were heavily into speculative pursuits, with enormous exposures to derivative operations.

Just exactly how that happened can be traceable to certain acts in the North by the mid-80s. Commodities markets have sprung up on that decade, even as a global recession took place then, threatening OECD economies. Liberal reforms were already permeating diverse sectors, and within the backdrop of liberalization, financial derivatives and equivalent portfolios were launched in mass scales.

Banks shed off their previous stance of inhibiting themselves from speculative pursuits. Soon they’d find themselves investing into every speculative games they could lay their hands into, inclusive of hedge funds operations.

Now, to fast track to the present, economists estimate that EU’s aggregate derivatives are within the range of $180-$200 Trillions, estimates that seem conservative. Measure this against the gross domestic product of EU at $13 Trillions, and you would be driven to ask: just exactly where will Europe get the funds to pay the hedged financials in case of bursts and massive bankruptcies?

If all of the hedge funds investors would ask for a forced payment of their total of, say, $200 Trillions more or less, who would pay for such debts? Where will the money come from? Is it morally right to extract taxes from European workers to pay up for the dirty debt papers in case? Is it likewise morally right to impose wage cuts on workers who were not the culprits in the virtual economy game in the first place?

Concerned Europeans should better rethink the Euro and ask whether the new currency really worked for their welfare. It is now clearer that the Euro was a sell-out idea and project, that it was launched to satiate the insatiable pockets of greedy financiers represented by the top financial houses there.

And Europeans better see how silly it is to allocate taxpayers’ money worth $1 Trillion to bail out ailing banks and industries hit by the rising meltdown. For measured against total debt papers of $180-200 Trillions, $1 Trillion would be ridiculously paltry.

Yet another ridiculous intervention is the austerity measure imposed by the IMF on Greece. We’ve had so many precedents of the deleterious effects of such measures on developing economies that aimed at eventually graduating from IMF programs as a salvation measure in the short run. While emerging markets are getting out of a burning house (IMF & austerity measures), Greece voluntarily entered this house. Unbelievable!

As per reports reaching my focals, Germany had the greatest exposures to Greece’s banking sector, with exposures running to hundreds of billions of euros. British financiers, on the other hand, have their hands full in Spain’s banks.

It isn’t difficult to forecast that the fire in Greece could spread to other eurozone economies. Not even the UK, which decided to stay out of the eurozone, will be spared from the bonfire. Spain is almost there now, and who knows what country will be next.

If banks and industrial conglomerates will simultaneously burn in all of the member-states of the eurozone, with total aid claims of past the GDP of $13 Trillions, then Europe will be on the brink of a continental inferno.

Concerned readers better think for yourself whether Brussels and the bureaucrats do have the right answers to the raging problems of Europe. Poverty incidences are now hitting past the 20% mark in member countries, while massive lootings of the financial and currency markets by predatory financiers take place every day in the continent.

Well, let’s all wait and see for what happens. Let us hope that a mad Nero bureaucrat wouldn’t appear to orchestrate the burning farther to infernal scale. That would bring a new nightmare to the whole planet if it happens.

[Philippines, 20 May 2010]

[See: IKONOKLAST: http://erleargonza.blogspot.com,

UNLADTAU: https://unladtau.wordpress.com,

COSMICBUHAY: http://cosmicbuhay.blogspot.com,

BRIGHTWORLD: http://erlefraynebrightworld.wordpress.com, ARTBLOG: http://erleargonza.wordpress.com,

ARGONZAPOEM: http://argonzapoem.blogspot.com]

GEORGIA LEADERS: VASSALS OF ANGLO-EUROPEAN OLIGARCHY

August 29, 2008

Erle Frayne Argonza

It may behoove many folks to conclude that the recent Georgia-Russia conflict was an isolated event that has got to do largely with the localized problem in South Ossetia. Before the folks would make their conclusions and curse Russia to the hilt, they better take note of the facts well, most specially those facts related to the Georgia leadership’s direct connections with the Anglo-European oligarchy that installed the same leadership to power.

There has been the persistent view from the source, the Executive Intelligence Review, of the British oligarchy as the core cabal behind the various hostilities in the world today, a view that I don’t exactly share. I am of the opinion that the British, who work largely through their empire network (Commonwealth of Nations), are mere middlemen for a more secretive elite circle that is centered in the Teutonic-Frankish-Venetian bloodline of financiers.

At any rate, the oligarchs do comprise a network of interlocking interests working out to completely dominate the planet, launch a new world war, and install a global government by converting their main creation, the United Nations, into the global regulatory institution and harbinger of the ‘world rule of law’ to conserve that perpetuate that same oligarchic power based on global totalitarian arrangements.

Below is a report from the Executive Intelligence Review concerning the connections of the Georgia leadership to the George Soros circle.

[18 August 2008, Quezon City, MetroManila. Thanks to the Executive Intelligence Review database news.]

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British and Soros Stooges in the Georgia Regime

Aug. 11, 2008 (EIRNS)—The following press release was issued today by the Lyndon LaRouche Political Action Committee.

Ongoing research has thus far identified the following British and Soros stooges in the current government of Georgia:

1) Prime Minister: Vladimir “Lado” Gurgenidze

A British empire banker, citizen of the United Kingdom.

Born 1970, Tbilisi, Georgia. Beginning in 1997 he worked for the Anglo-Dutch giant bank ABN Amro, living in London 1998-2003. From 1997-1998 he directed the bank’s corporate finance operations in Russia and neighboring countries. Among the ABN AMRO conquests was its “twinning project” ensnaring the Bank of Georgia, which had been privatized in 1994-95. From 1998-2000 Grugenidze was ABN AMRO’s Director and Head of Mergers and Acquisitions in the Emerging European Markets.

After the 2003 Soros “Rose Revolution” he returned to Georgia and was chief executive (2004-2006) for the Bank of Georgia, in line with the joint UNDP-Soros structural/financial reorganization program for the country (“capacity-building”). Gurgenidze brought in a management team from ABN AMRO and other British-connected banks.

Gurgenidze was appointed Prime Minister and head of the government in November 2007.

2) Head of the National Security Council: Alexander Lomaia

A longtime top executive of George Soros operatons in Georgia, now overseeing the country’s military operations.

In 2003-2004, Lomaia was Executive Director of the Open Society Georgia Foundation (Soros Foundation). He “directed the foundation’s operational grantmaking and administrative activities, and fulfillment of its annual overall budget of more than $2,500.000. Supervised the staff of up to 50 program, finance, and administrative employees.”

In 2003-2004, Lomaia was regional director for the former Soviet Union for the Open Society institute’s “Democracy Coalition Project”. He “facilitated NGO coalition-building in the newly independent countries of the former Soviet Union to promote an activist democratic reform agenda…. The project facilitated the creation of an international federation of the national coalitions which collectively pursued … democratic reforms on the international stage.”

3) Chairman, Georgia Parliament Committee for Eurointegration: David Darchiashvili

Former Executive Director, Open Society Georgia Foundation.

Darchiashvili has worked for the Soros-dominated NGO networks since 1992, primarily in the Caucasus Institute for Peace, Democracy and Development, a “partner institution” to the Soros Open Society Institute (among its achievements were publishing a Georgian translaton of neoconservatve Francis Fukuyama’s ” “The End of the History and the Last Man”).

Darchiashvili was executive director of the Open Society Georgia Foundation in the period (approximately) 2006-2007, apparently succeeding now-prime minister Gurgenidze as head of Soros operations in Georgia. In his present position he coordinates the Parliamentary institutions in Georgia with the British/Soros plans for the European Union, in conjunction with such channels as the Soros “European Council on Foreign Relations.”

SOROS MANIPULATING WORLD WAR III START UP VIA GEORGIA

August 28, 2008

Erle Frayne Argonza

Just exactly what is the overall purpose of the recent Georgia-Russia conflict within the broad context of the agenda of the global oligarchy? Does it have to do with the broad war that was hatched that will begin in the Middle East, with the oligarchic proxy vassal-states taking sides in the conflict? Was the conflict a mere acid test case by the same elites to assess the offensive capabilities of Russia at this juncture?

Below is a report from the Executive Intelligence Review which lends credence to the thesis of NATO forces being honed for that larger forthcoming war. George Soros, the bagman for dozens of financier oligarchs of Europe, was identified as a key operator in fomenting the latest conflict in Central Asia that pitted the oligarchic vassal Georgia with Russia.

[18 August 2008, Quezon City, MetroManila. Thanks to the Executive Intelligence Review database news.]

LaRouche Denounces `Obama’s Godfather’ George Soros Behind Attempt To Start World War III in the Caucasus

Aug. 10, 2008 (EIRNS)—This release was issued yesterday by the Lyndon LaRouche Political Action Committee (LPAC).

Lyndon LaRouche today denounced British agent George Soros, for his hand in the ongoing London-led efforts to trigger World War III in the Caucasus. Soros is the financial and political godfather of both Georgian President Mikhail Saakashvili and the purported Democratic Party Presidential nominee, Sen. Barack Obama (D-Ill.). In the late hours of Aug. 7, as President Saakashvili completed a nationwide television address, claiming to seek a diplomatic solution to the crisis in the autonomous region of South Ossetia, he in fact ordered Georgian troops to fire on Russian peacekeepers, who were in South Ossetia as part of a United Nations mandated force, that has been there since 1994. President Saakashvili’s actions now threaten to trigger World War III—precisely what the British intend as their response to the collapse of their post-Bretton Woods international financial system.

“If you want a preview of what the United States would be like under a President Obama, just look at Georgia’s recent actions. Georgian President Saakashvili, like Barack Obama, is owned by the same British godfather—George Soros.” LaRouche asked: “Would Soros’ man Obama be another Dick Cheney if he got into office?”

Soros’ own Open Society Institute boasts that it was the backbone of the so-called “Rose Revolution” that swept Saakashvili into power in 2003-2004. As of January 2004, the Soros Open Society Institute, which first set up its office in Tbilisi, the capital of Georgia, in 1994, began directly bankrolling the Georgian government, as part of a joint program with the United Nations’ UNDP (United Nations Development Program), then headed by Mark Malloch Brown, who is now secretary general of the British Foreign and Commonwealth Office. Malloch Brown was so close to Soros, during his tenure at the UN, that he lived in an apartment he rented from the hedge fund speculator.

Saakashvili’s reckless provocations, in firing on Russian troops and killing South Ossetian civilians, who are predominantly Russian citizens, drew a strong military response from Russia, which is bound, under its constitution, to defend Russian citizens under attack. The British have been behind the destabilization of the Caucasus region since the collapse of the Soviet Union, funding and arming Chechen rebels, allowing recruitment into the Chechen separatist movements, at mosques in England, and providing safe haven to Russian Mafiya figures, like Boris Berezovsky, who bankrolled anti-Russian separatist and terrorist operations in the Caucasus.

“Now, look at the vast Soros cash flow into Obama,” LaRouche concluded. “Soros is a British agent, under the control of British foreign intelligence and special operations services. He is used by them. His sources of funds, after his initial bankrolling by the Swiss branch of the Rothschild banking interests, are murky, at best. Soros is part of Britain’s new opium war apparatus—and he virtually owns Senator Obama. And now he is fomenting world war provocations against Moscow, at precisely the moment that I am calling on Russia, China, and India to join the United States in creating a new international financial system that would wipe out speculators like Soros altogether.”

 

EURO-OLIGARCHIC OPERATORS BEHIND GEORGIA CONFLICT WITH RUSSIA

August 27, 2008

Erle Frayne Argonza

Good morning!

 

Going back to the recent Georgia-Russia conflict, which is actually a mere dress rehearsal of NATO for its future big war upon the installation of a totalitarian North Atlantic Empire in the near future, the thesis was raised that Georgia had turned itself into a (b) vassal-state of the Anglo-European oligarchy (or ‘global oligarchy’) and (b) was the same elite’s surrogate it its conflict with Russia.

 

It would pay to know just exactly who are the people involved behind the scene as operators for the global oligarchy for its latest synarchy engagement in Central Asia. Analysts connected with the Executive Intelligence Review were able to identify one named Mark Brown, who works for the same elites through his sponsor George Soros.

 

Below is a news item from that details the information about the oligarchic operators involved in the aforesaid conflict.

 

[18 August 2008, Quezon City, MetroManila. Thanks to the Executive Intelligence Review database news.]

 

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Mark `Moloch’ Brown: The Empire’s Coup Man in Georgia

Aug. 12, 2008 (EIRNS)—There is good reason for the British Empire’s silence about the attack by Mikhail Saakashvili’s Georgia on South Ossetia on Aug. 7, an attack that brought the world to the brink of World War III. Saakashvili was put in power by the duo of British agents—billionaire speculator and Nazi collaborator, George Soros, and Lord Mark Malloch Brown, now the United Kingdom’s Minister for Africa, Asia and the United Nations for the British Foreign and Commonwealth Office (FCO). And, by tracking the records of the UN Development Program (UNDP) which Malloch Brown administered, and Soros’s Open Society Institute and its offshoots, the proverbial check stubs will be found.

Lord Malloch Brown has been in the business of overthrowing governments since 1986, when he left the London Economist for the international section of an agressive political consulting firm in the U.S. called Sawyer Miller, and from there advised the Presidential campaign of Corazon Aquino in the Philippines. He stuck with Aquino through the overthrow of President Ferdinand Marcos in 1986, a role about which he boasts. In 1990, he represented the Presidential campaign of Peruvian fascist novelist Mario Varga Llosa, a drug legalization advocate, who lost the election after proposing a vicious austerity program to cut the living standards of Peru’s lower classes. Sawyer Miller also helped promote the Dalai Lama against China.

From Sawyer Miller, Malloch Brown spent the next 18 years at the World Bank and the United Nations, forming a deep, but secretive relationship with Soros.

He is also secretive about his finances—he lists only his government salary of about $160,000 on financial disclosure forms. Prior to taking the Ministry job, he served as the Vice Chairman of George Soros’s hedge fund, the Quantum Fund in 2007. For a bit of comparison, note that Soros earned billions of dollars heading the Quantum Fund in recent years!

Malloch Brown enhances his meager government salary, however, with a government-subsidized home in London called “The Admiralty House,” which is valued at about 7.76 million pounds sterling, according to the British government. Both the Spectator and the Times of London have written exposes of Malloch Brown for this sweetheart deal, where the rent is over $300,000 per year, and for which he “leapfrogged” over 20 higher-ranking cabinet members to get the perk. The price Malloch Brown demanded, to leave Soros’s Quantum Fund was a fat portfolio covering the entire world, a peerage (he is now a British Lord), the right to attend Cabinet meetings, and the luxurious home.

The subsidized home deal is identical to the arrangement which Malloch Brown had for about five years when he headed the UN Development Program, and then became Deputy Secretary General of the UN, and lived in New York. There he was a tenant at the five acre estate owned by George Soros in Katonah, New York, which the UN paid for, at $120,000 a year, to Soros. It was about 20% below the market price, but when asked about this house by a reporter, Malloch Brown stormed out of the interview, exclaiming, “I am doing God’s work!”

Malloch Brown and Soros have been co-conspirators in a global plot against the nation state since at least 1993, when Malloch Brown joined a group organized by Soros that travelled to Serbia and Bosnia, to advise him on how to best spend a $50 million grant to “rebuild” Bosnia, after the British orchestrated war had destroyed it. In the 1990s, Soros had also funded the street thug apparatus OTPOR, that boasts of toppling Serbian President Slobodan Milosevic in 2000. Soros’s network later used the experienced Serbian mob-controllers to create the “democracy shocktroops” for the “Rose Revolution” in Georgia that put Saakashvili into power.

Throughout his time at the UN, Malloch Brown and Soros were a duo. They held a joint press conference in Monterrey, Mexico in 2002, to announce plans on how use UN funds, integrated with private funding from Soros and his ilk, to control the economies and policies of Third World countries. Soros was not there as a philanthropist—he was there as President and Chairman of the Soros Management Fund, a notorious hedge fund.

The Rose Revolution

There would be no Saakashvili regime today without George Soros and Malloch Brown. Even in 2001, Saakashvili was a Soros-financed operative. In January, 2004, at the annual meeting in Davos, Switzerland, Soros, Malloch Brown, and Mikhail Saakashvili gave a joint press conference where Saakashvili got $1.5 million—two-thirds from Soros’s Open Society Institute and one-third from the UN Development Program. The funds were to be for a “Governance Reform Program” for Georgia, of which the main project was payoffs—a “Salary Supplement Fund,” for which Malloch Brown arranged millions more.

Malloch Brown’s UNDP bluntly describe how he and Soros would, in effect, not only give money, but would stack the Georgia government with the “skilled professionals” they would pick. The UNDP report says that,

Georgia “lacked the skilled professionals needed to design and execute sweeping reforms…. The state lacked the resources to pay salaries” that might lure the kind of globalist operatives that Soros and Malloch Brown wanted there.

So, continues the UNDP Report, “Working in close partnership with billionaire philanthropist George Soros, UNDP moved swiftly…. Speed was recognized as crucial to success. Even before Mr. Saakashvili was sworn into office, UNDP and Mr. Soros’s Open Society Institute (OSI) had agreed upon the creation of a new initiative to help the new administration secure the staff and expertise it needed.” The initiative—to pay a supplemental salary to Saakashvili and top government officials—went on for three years, and Saakashvili himself admitted its importance at a Washington, D.C. press conference in early 2004, when asked about his financial dependence on Soros.

Saakashvili said: “Now regarding George Soros’s contribution, this is primarily UNDP Fund: United Nations Development Program Fund to fund capacity building for Georgian government, and George Soros will not be the only contributor. We said we expect, as we already have pledges from a number of other contributions. We only have at this moment, two million dollars contributed by UNDP and Soros, but we have some other pledges, we need at least eight million dollars already this year and we will need some more for the next year…. Soros played good role in bolstering democratic processes in Georgia. He was very instrumental for many NGOs in their development and I think there is nothing bad about that, wrong about that.”

Malloch Brown’s UNDP report even boasted that this funding had provoked “Russian President Vladimir Putin … to chide Mr. Saakashvili that he was on Mr. Soros’s payroll.” By 2006, the salary supplements were over $1 million per month, says the UNDP report.

These are the funds that go to a large contingent of Soros agents who are the government of Georgia: head of the National Security Council, Alexander Lomaia; Gigi Bokeria, Deputy Foreign Minister (who had been one of the early trainees of the Serbian Otpor for street demonstrations); Chairman of Georgia Parliament’s Committee for Eurointegration: David Darchiashvili, to name a few.

EU-BRITISH OLIGARCHS PRACTICE WAR VIA VASSAL GEORGIA

August 26, 2008

Erle Frayne Argonza

The ‘peace arena’ is getting to be fuzzier by the day as armed hostilities are escalating worldwide. The latest among these was that brief full-scale hostilities between Georgia and Russia, hostilities that were directly related to South Ossetia.

 

On the level of appearance, it was a conflict among neighbors Georgia and Russia. However, when one reflects on the added facet of Georgia’s application to the NATO as a member-state, the underpinning machinations of the Anglo-European oligarchs will be easily seen.

 

As already elucidated by this analyst, the global oligarchy had already formulated the blueprint for its wars of the future and the mutation of the EU and USA into totalitarian police states in the short run. Global ‘synergistic anarchy’ (synarchy), modeled after the ancient Empire of Rome, is a key strategy of the same oligarchic circles to foment conflicts across the globe, aimed as always to preposition the financier and industrial interests of their respective families and members.

 

It is very clear to this analyst that Georgia’s leaders have chosen to gravitate to the power orbit of the financier oligarchs, and desire to be counted among the NATO member-states. This same military umbrella will be the military arm of a forthcoming North Atlantic Empire comprising of the EU and USA, an empire that is now rapidly shaping before our own eyes.

 

The presence of NATO in Afghanistan and its proxy war versus Russia via the new vassal-state Georgia are among the exercises aimed at honing the military might of the alliance. The encirclement of Russia is being tested at this moment, as well as assessing the firepower capabilities of the revived Russian state whose very own leaders have turned hawkish during the last few years.

 

Below is an article by Helga Zepp-LaRouche, leader of the Shiller Institute, regarding the oligarchic machinations behind the Georgia-Russia conflict.

 

[15 August 2008, Quezon City, MetroManila. Thanks to Executive Intelligence Review database news.]

 

IN THE FACE OF GLOBAL COLLAPSE

British, EU Target Russia With Shooting War in the Caucasus

by Helga Zepp-LaRouche

With the underpinnings of the present world financial system growing shakier by the day, the outbreak of warfare in the Caucasus shows how quickly the current world situation can be thrown out of joint. It also gives us a foretaste of how quickly it could expand into a new general war. Even if no one can precisely predict how much time we have left to address the underlying cause of the growing threat of war—namely, the systemic crisis of the world financial system—the military operations in the Caucasus nevertheless make clear that our brief window of opportunity could close quite suddenly.

“Caucasus War Catches Europe Flat-Footed,” was Spiegel-Online’s headline to its article on Aug. 8 about the escalation of the conflict between Georgia and South Ossetia—a conflict which has taken on the character of a typical proxy war between the United States and Russia. The article’s author, Hans-Jürgen Schlamp, reports from Brussels on the alleged “helplessness” of the European Commission and of the French government, which currently holds the EU Presidency, all of which can do nothing except express their “deep concern.”

Nothing could be further from the truth. Back in February, when the European Union—Great Britain, France, and other nations, supported Kosovo’s unilateral declaration of independence, it was already perfectly clear that this destabilization would not only affect the Balkan states, but was also giving the green light to every conceivable separatist movement and minority throughout the world. Just as in the Balkan wars leading up to World War I, and also in the 1991-95 Balkan War, this ethnically complicated region is serving as a chessboard for British geopolitical destabilizations, with the ultimate aim of drawing the great world powers into the conflict, and/or preventing any peaceful economic cooperation on the Eurasian continent. And it is certainly no accident that, since Dec. 12, 2007, the chief of the EU’s planning team for Kosovo has been none other than the British diplomat Roy Reeve, a Russia expert, whose previous postings took him to Northern Ireland, Ukraine, Armenia, and Georgia—i.e., precisely those countries which have problems with nationalities and ethnic minorities.

Already on July 15, Ronald D. Asmus of the German Marshall Fund (GMF) wrote that a war between Georgia and Russia was in the offing, and that this could easily ruin relations between Russia and the West. And that was obviously the intention all along. Asmus also chaired a meeting of the GMF earlier this year in Brussels, where five former military general staff members presented an outrageous report proposing that NATO be transformed into a globally operating intervention force which, under certain circumstances, would be permitted to launch a first strike with nuclear weapons.

With its so-called “Rose Revolution,” and its desire to join NATO, Georgia has turned out to be a willing instrument of the Anglo-American strategy for encirclement of Russia. But what induced Georgia to reoccupy South Ossetia at this particular moment, 16 years after the latter declared its independence? The war in the Caucasus is part of a global destabilization effort, coinciding with the arrest of former Bosnian Serb leader Radovan Karadzic, as well as with the destabilizations of Turkey, Pakistan, Sudan, and Zimbabwe, by means of terrorist attacks or sanctions—and we are only mentioning the most prominent of many other similar crisis spots.

Financial Crisis Fuels War Threat

As I already pointed out above, the overall context of these events is the escalating collapse of the global financial system, which has been pulling ever larger chunks of the real economy down into the abyss with it. The Federal Reserve is now committed to using its rediscount facility for making practically unlimited liquidity available to the two de facto insolvent mortgage giants Freddie Mac and Fannie Mae—which together, guarantee $5.3 trillion in U.S. mortgages! Not only does this have enormous hyperinflationary ramifications, but it only plugs one solitary hole in the leaking boat. In the United States, speculators are debating whether it’s 3,000 or 5,000 banks which are bankrupt; eight banks have already officially shut their doors so far this year. Meanwhile, the U.S. economy—or what’s left of it, after years of “outsourcing”—is sinking ever more deeply into depression: the auto sector, the airline industry, the construction sector. More and more states and municipalities are being forced to make draconian cutbacks, such as in California, where 22,000 state employees have been laid off, and another 200,000 are threatened with having pay reduced to the minimum wage.

Meanwhile, some analysts have joined Lyndon LaRouche in the view that the rate of collapse in Europe is going to be even faster. Spain’s collapsing real estate sector is bringing a massive banking crisis in its wake, and similar scenarios are playing out in Great Britain, where the Royal Bank of Scotland has had to write off $12 billion in the aftermath of the government takeover of Northern Rock. The situation in Denmark is equally dismal. The official inflation rate in the EU is hovering above 4%, whereas the real rate of inflation for less well-off wage earners is far greater, because they have to spend the bulk of their income on food, energy, gasoline, housing, etc. And when none other than former Federal Reserve chairman Alan Greenspan, “Mr. Bubble” himself, starts talking about the crisis of the century—a crisis for which he is personally responsible—then it’s clear that he wants to prepare the world for the great crash immediately ahead.

It wouldn’t be the first time in history that the international financial oligarchy has attempted to keep a worldwide financial and economic crisis under control by fanning the flames of war. And anyone who prepares for war, must first create an enemy image, so that the population can be brought into line.

Vile Attacks on China

That is precisely the intention behind the repulsive China-baiting being emitted by the media and by politicians on the occasion of the Olympic Games. Regardless of whether it’s coming from witting agents of the British Empire faction, or from mindless dumbos on the morning news shows: The irresponsible gossip that has been spread during the run-up to the Olympic Games, has been simply monstrous. Without any regard for the truth, and without a shred of knowledge of China’s history and culture, the wildest assertions have been floated—assertions which could well succeed in poisoning relations with China, and in helping prepare for coming conflicts with China (and with Russia).

Not only were the opening ceremonies of the Olympic Games in Beijing wonderfully beautiful and poetically conceived, but they were also a magnificently staged demonstration of the 5,000-year history of this great nation, one which, for a long time, was the world’s leader, and which is now preparing to resume that role sometime in the future. Even though China certainly has its fair share of problems—for example, the poverty of the great majority of its rural population, and also a certain degree of Western materialism which has infected part of its population—what counts is the vector of development, and in China that vector is going upwards—in contrast to what’s happening with the arrogant sophists of the West’s empire faction.

The Chinese government has blocked Internet access to anti-Chinese propaganda emanating from international and British organizations in connection with Tibet and the Uighurs—and it has every right to do so. After all, do the British and American governments allow the Taliban’s tracts or al-Qaeda’s instructions to be circulated around the country? What do destabilization efforts by an enemy power, have to do with democracy and human rights?

The fact that in Europe, a politician who voted for the ratification of the Lisbon Treaty, or a representative of the media which, even after the Irish “No” in their referendum, did not run a single pertinent article on an EU treaty which would abolish parliamentary democracy in Europe once and for all, and would establish an oligarchical dictatorship, would now dare to decry a lack of democracy and human rights in China—that is truly the height of Goebbels propaganda! It would have made Goebbels pale with envy. Europe is dominated by a truly terrifying democracy deficit, resulting in an increasingly deep-seated and extremely dangerous cultural pessimism, as expressed in the famous retort, “There’s nothing we can do about it, anyway.” And so, those politicians and journalists who raise a fuss about democracy in China, ought to go out and listen to what the population thinks about the political class and the media—in Germany, for example.

If we are to make use of the fast-closing window of opportunity, which will hopefully remain open long enough for us to prevent the great catastrophe, then we will have to embark on a radically different path. One very promising impulse in that direction, is an article that Russian Foreign Minister Sergei Lavrov wrote for the current issue of the journal Russia in Global Politics, under the title “Russia and the World in the 21st Century,” which directly reflects the positions of President Dmitri Medvedev and Prime Minister Vladimir Putin.

Lavrov affirms the obvious fact that the epoch of the past 400-500 years, during which European civilization has dominated the world, is now closing, and that a new vision is therefore required. He rejects not only the idea that the world will gradually adopt Western values, and the theory of “the end of history”—the idea of a global Anglo-American empire—but he also rejects the idea of a “post-American” world without the United States.

The Russian Foreign Minister emphasizes that he absolutely disagrees with the idea that current developments must end in chaos and anarchy. Rather, he believes that a new international political, financial, and economic architecture can be created, one in which Russia must play a major role as an equal partner.

The Anglo-Saxon (i.e., free-trade) model is tottering, Lavrov writes, just as it was in the 1920s, and therefore today, just as then, the model of Franklin Roosevelt’s New Deal is called for. China, India, Russia, and Brazil must be integrated into this new reform of our international institutions. On this basis, plans can be made for a common future for the entire Euro-Atlantic region and for the world as a whole, a future in which security and prosperity become truly inseparable, he states.

Two Options

The Western nations today have essentially two options: Either they follow the British line, treating Russia, China, and India as antagonists—which means, for example, using Georgia for anti-Russian operations, fostering separatist tendencies inside China, setting financial locusts against India, and other such things. In which case, the great catastrophe is sure to come.

Or, they can heed the proposal which LaRouche has been making for some time, that a new international financial and economic order, in the tradition of Roosevelt and his New Deal, and Bretton Woods, be put onto the agenda. In such an arrangement, the United States, Russia, China, and India must collaborate as a core grouping, around which other sovereign nations can congregate. And that is essentially what Foreign Minister Lavrov says in his article.

For Europe’s nations, this means that they must extricate themselves from the European Union straitjacket which, for Germany, since Maastricht at the latest, has become a new Versailles Treaty. Europe’s nations can, and certainly should cooperate as a Europe of sovereign republics—which will be vastly more in keeping with the spirit of humanist Europe, than is possible today with an EU bureaucracy which is farther away from Europe’s humanist tradition, than Earth is from a galaxy a couple million light-years distant.

Let us hope that the coincidence of what Greenspan himself has described as the financial system’s crisis of the century, with the realization of how quickly war can break out, will be sufficient to shock responsible people back to reason.

ANOTHER GREAT DEPRESSION COMING AS FINANCIAL SYSTEM ENDS

August 18, 2008

Erle Frayne Argonza

Is the global economy moving downward towards a devastating collapse?

If we employ a long-term Kondratieff cycle to model the world economy, we can see that the period beginning in 1935 approximately (when the big market economies US-UK-Germany moved towards another cycle of growth approximately after the Great Depression, should have ended around 1995 approximately, after which comes another great depression.

As early as 1989, ramblings of a global collapse began to murmur in the US economy. Mexico, Japan, Argentina, and other economies followed in the 1990s, while Europe went through a general low-growth trend that was the most sustainable for the continent as a whole. Then came the Asian meltdown of 1997. Then the USA again went through a recession in 2001, a pattern that has been repeated again from 2008 to the present. It seems that the pillars of the world economy couldn’t get out of a short-term crisis without having to crash back to another episode of short-term crisis altogether.

Is it really a ‘short-term’ crisis in the first place? Or is it in fact a ‘systemic crisis’, and that the financial downspin the Northern economic pillars are going through could very well be the terminal phase of a very long cycle of growth that began after the end yet of the Treaty of Westphalia (1648)? That in fact, several long-wave Kondratieff cycles have already passed over since that time, and that finally the system is DEAD in the wood?

Well, not only the financial system but the whole of CAPITALISM is already on its death throes. Those oligarchs behind the systems now dying won’t see the systems they built die down just that without “bringing down the other houses” with them, it seems. Which means that, right after the terminal phase of the system, another huge, catastrophic war will come, which will later see another Westphalian-type treaty or so that will re-carve the contours of polities into a Post-Westphalian totalitarian technotronic global order.

Below is a briefer from the Executive Intelligence Review that summarizes the issue at hand.   

[18 August 2008, Quezon City, MetroManila. Thanks to Executive Intelligence Review database news.]

End of the Line for Financial System; Bankruptcy Issue Raised

Aug. 10, 2008 (EIRNS)—The death of the financial system was the implicit subject of several articles in the financial press over the weekend, reflecting the way reality is setting in and attitudes are changing.

  • “Investment banking is dying,” was the blunt statement by William Cohan, in a op-ed in today’s Washington Post entitled “The End of the Masters of the Universe?” Cohan says that the revenue streams of the investment banks are drying up, and that there is genuine fear in the corridors of power on Wall Street.
  • “We have a banking crisis and an agency crisis and a mortgage crisis and a coming credit card crisis. We’ve never seen anything like that before. And it all seems to be coming home to roost at the same time. That’s never happened either,” Charles Geisst, a professor of finance at Manhattan University, told yesterday’s Washington Post. He said the Great Depression was the last time the financial markets were hammered by such a variety of factors, adding: “But we did not even have credit cards in the 1930s; there was no such thing as student loans.”
  • The specter of generalized bankruptcy was raised by Yale finance professor Robert J. Shiller in an op-ed in the New York Times. Citing the failure of Bear Stearns and the government measures to bail out Fannie Mae and Freddie Mac, Shiller asks, “What if the next case is worse? No one in government seems to feel a responsibility for warning about such possibilities and formulating a detailed policy for dealing with them.” Shiller says that “Bankruptcy law is a good place to start. After all, the dreaded financial meltdown would amount to a wave of bankruptcies…. What would happen to the economy if hedge funds had to liquidate, one after another, in a financial crisis? We need to rethink the theory and practice of bankruptcy, given the new complexities.”

Shiller points to the inherent limitations in current bankruptcy laws, which were largely drawn to protect narrow financial interests, and are poorly suited to deal with systemic problems, when a “subsidized system of triage would be needed to identify which companies should be saved, with the main criterion being the possible economic impact of their liquidation.”

These comments, taken as a whole, represent the way discussions of the “unthinkable” are beginning to percolate, and converge upon the outlook of Lyndon LaRouche. Shiller’s mention of triage by bankruptcy echoes the emergency measures proposed by LaRouche, of putting the financial system itself through bankruptcy, protecting the population with a firewall, and freezing the financial paper while we determine what debts will, and won’t, be honored. Whatever Shiller may think about LaRouche’s proposals, he is implicitly admitting that the system is finished, and that we must prepare for its demise, making decisions on the basis of the interests of society, and not merely the narrow interests of financial institutions. Reality is setting in, and reality leads inexorably to the policies outlined by LaRouche. 

AID FUNDS FOR AFRICA, ANYONE?

August 7, 2008

Erle Frayne Argonza

Magandang araw! Good day!

Aid commitments to the south by the more developed economies of the North have been among the news trends recently. There is, for instance, the commitment of $25 Billion per year for the whole African continent, a commitment that hopefully won’t fly in the air as mere political promise.

A relevant news concerns IMF-World Bank actions about the matter.

[30 July 2008, Quezon City, MetroManila. Thanks to DevEx database news.

 

IMF, World Bank & IFI Round-Up

Leaders of the Group of Eight rich nations are set to backtrack on their landmark pledge at the Gleneagles summit in 2005 to increase development aid to Africa to USD 25 billion a year. A draft communiqué obtained by the Financial Times, due to be issued at the group’s July summit in Hokkaido, Japan, shows leaders will commit to fulfilling “our commitments on [development aid] made at Gleneagles” – but fails to cite the target of USD 25 billion annually by 2010. This goal – which was repeated at last year’s G8 summit in Germany – was seen as an important boost for Africa. The ambitious plan was a cornerstone of former UK prime minister Tony Blair’s G8 presidency and championed by his successor, Gordon Brown.

Warning that rising food and oil prices pose a crisis for the world’s poor, Robert B. Zoellick, the President of the World Bank, is calling on President Bush and other leaders convening in Japan next week for the G8 summit meeting to make new aid commitments to avert starvation and instability in dozens of countries. Zoellick’s letter, obtained by NYT, came with a lengthy study of the impact of rising prices for food, fuel and commodities on the world’s poor. Zoellick said in his letter that the World Bank, the International Monetary Fund (IMF) and the World Food Program (WPF) had short-term needs of USD 10 billion. Zoellick’s letter calculates that, for the world’s 41 poorest countries, the combined impact of high food, fuel and other commodities is a ‘negative shock’ to their economies, reducing GDP by between 3 and 10 percent, causing ‘broken lives and stunted potential’ for millions.

The World Bank gave the go-ahead at a board meeting July 1 for the creation of a pair of global investment funds to back developing nations’ efforts to curb greenhouse gas emissions and adapt to the effects of climate change. The Climate Investment Funds, led by Japan, Britain and the US and to be administered by the World Bank, are expected to start with total initial funds of USD 5 billion and become operational by the end of the year, it said. The approval of the Clean Technology Fund and Strategic Climate Fund comes days before a summit of G8 in Hokkaido, Japan, on July 8 where climate change issues are on the agenda. ‘The G8 is likely to broadly support the establishment of the climate investment funds,’ Warren Evans, Director of the World Bank’s environment department, told reporters.

A new IMF study, looking at the impact of soaring oil and food costs, said many poor and developing countries will likely have to change their economic policies in response to soaring commodity prices, AFP reported. The IMF Food and Fuel Prices–Recent Developments, Macroeconomic Impact, and Policy Response report found that poor households are most affected by food price inflation and “warned that the share of undernourished (people) in developing countries could rise rapidly above the current 40 percent of total population.” Energy and food values are still rising and the IMF said its research suggests the “problem is worsening.”

The World Bank’s private sector arm has launched a new fund it hopes will unlock as much as USD 5 billion in infrastructure investment for the world’s poorest countries. As part of its drive to reach deeper into some of the most forbidding markets, the International Finance Corporation (IFC) will use a pot of USD 100 million to cover the initial costs of power, logistics, and transport, ports and communications projects. Once a project is shown to be viable, it will be tendered to other investors, the Financial Times (UK) reported. Working with an initial partner, the IFC fund – known as InfraVentures – will cover start-up costs such as feasibility studies and legal fees. Half of its resources will be devoted to sub-Saharan Africa, with the remainder spread across Latin America and Asia.

EUROPE’S TOTALITARIAN SLIDE CHECKED BY IRELAND’S VOTE ON LISBON TREATY

June 24, 2008

Erle Frayne Argonza y Delago

Good morning!

It is a stormy morning actually as I write this piece, and it seems to coincide with stormy events in the European continent at the moment. The continental storm has got to do with the finalization of the Lisbon treaty that could have effected complete political integration of Europe.

What makes the treaty questionable, in the opinion of many in Europe and across the globe, is that it didn’t pass through the public opinion mills and debates. Engaging Europeans themselves in voting for the measure could have been the most important method to ensure public consent about the unification treaty.

What is scary about the treaty, per analysis from many quarters including the Guardian and Executive Intelligence Review, is that it could pave the way for a central authority that is an undisguised totalitarian regime. A continental police state could have been the result of the full implementation, which is scheduled on January 2009, coinciding with the report to office of a new president in the United States.

Already, certain political personages are salivating for sitting in the throne of European president in case the treaty will be fully enforced. Tony Blair, former premier of the UK, is among those top candidates, and is noted to be very interested in becoming the first president of the political Union. In that case, he will be the first legitimate Emperor Palpatin, who will then sign marching orders for das boots mobilizations and conflagration of a total magnitude that will dwarf what the planet had ever experienced.

If the treaty will be fully implemented, the NATO will become the instant military wing, and the nuclear arsenal of the UK and France will be placed under the direction of Brussels. The NATO will become the command center for an EU-USA hegemonic partnership that will bring warfare to its next level across the planet.

The whole of Europe will suddenly become a police state of nightmarish proportions. The immigrants there today as well as the prison inmates will instantly turn into slave labor for global corporations. The scheme, as it was already tested in the USA, is for greater privatization of prison services. It is but another disguise for slave labor pure and plain.

You may have noticed the massive influx today of immigrants to Europe. This had already been pre-planned before to raise the level of future slave laborers in the new totalitarian continent. They will backstop the prisoners whose numbers will increase by many folds as brutal police forces will be rounding up every suspicious member of a neighborhood supposedly to check on guns, drugs, alcohol drinking binge, sex orgy parties, criminals,  and so on.

That totalitarian march of Europe had been checkmated for a while, as Ireland sought its citizens’ vote on the matter. Irish people rejected the treaty, and so this gives Europe some breathing space to re-think about the compass of political economic life. It could in fact be a chance to abolish the European Union altogether, which is really nothing but a central regulatory arm of the Anglo-Dutch-Teutonic oligarchy within its own backyard.

Let us all keep our eyes wide opened, vigilant to the max as events unfold in Europe. We can never again allow a totalitarian regime in that continent, whose spill-over effect would be a rapid resurgence of Japanese militarism in Asia. No, never again can we see a repeat of the fascistic days of the ‘30s & ‘40s.

[Writ 22 June 2008, Quezon City, MetroManila]