Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

Sunday, April 28, 2013

Bitcoin

I've decided to start taking any and all donations in bitcoin starting immediately. I've been watching bitcoin for a few years now and have become more and more excited about it the more I learn about it. Bitcoin is a de-centralized, open-source crypto-currency. Bitcoin is fantastic because it is not dependent on any one institution and thus has no hierarchy (for example, a hierarchy of the government above the people) inherent to its structure.

 Here's an annoying video to explain everything to you



 In many ways, Bitcoin is like Gold:

 I do not believe that gold and bitcoin are really in competition. Rather, I think that bitcoin is in competition with central bank paper.  It provides a peer to peer alternative to paper promises issued by a centralized authority.  One can literally walk up to someone on the street, and exchange physical gold for digital bitcoin.   I believe this currency could make the entire banking industry obsolete in the long run, since one no longer needs to trust the institution issuing paper.  Rather, this trust is placed in cryptography as well as the bitcoin network which is so vast, taking it down would be, like the man in the video says, like taking down the internet.

Gold is money: it provides the store of value, safe from counterparty risk.  While Bitcoin functions as currency: instant, digital, easily transactable and highly portable.  Both of them are anonymous and neither of them is dependent on a centralized institution for their existence.


Right now bitcoin is in its early stages and is extremely speculative and volatile.  I am not posting this, encouraging you to put your savings into bitcoin but rather, I am posting this as a show of support for bitcoin itself.


If you're new to this blog you might want to check out some of my poetry.


Anyway, if you like what you read here, drop some BTC in the bucket!

Wednesday, September 19, 2012

The State Explored Through Art

First let us begin with an artistic critique of the state and the left/right political division.  This video is a critique leveled by the band Laibach and their artist collective.  Though it may appear fascist, it must be analyzed beyond the immediate aesthetics of its presentation.  The lyrics, for instance, are not those of a fascist dictator, but rather those of the communist revolutionary Josip Broz Tito.  They exalt the supposed virtues of the state while claiming its authority is derived from the people.  This juxtaposition of fascist imagery and communist rhetoric has the effect breaking down the divisions of left and right, leaving the viewer faced with pure violent force: the will of the state. 


To represent society within the state as the division between left and right is to institutionalize division and violence. Not only are the two sides divided against each other, but they are also divided against themselves: the left is pulled two ways by its stance as socially libertarian and economically authoritarian, while the right is pulled two ways by its stance as socially authoritarian and economically libertarian.  Society is thus doubly fragmented by its left-right division as well as its libertarian-authoritarian division.  In the end this fragmentation produces a paradigm that is both socially and economically authoritarian: this institutionalization of conflict demands more state control, more violence simply to keep things together.


This is exactly what the state does.  The state uses violence to keep the situation (the nation), that it creates and oversees, together.  It does this by representing the people of the nation to themselves.  In this way, the state is the people, but only insofar as it is the people separated from themselves.


To divide the conflict within the state into left and right parties is therefore to institutionalize the need for the state.  The left/right division -unlike the authoritarian/libertarian division- does not pertain to the nature of the state per say, but rather to the specific expressions of its adherent's individuality.  By siding with a side in the left/right division, the individual ignores the nature of the state leaving the state with the task of expressing the nature of leftness or rightness (since it is within the state that the conflict between left and right is embodied).  The state is thus left to its own devices: first encroaching on society in a "left" way (pushing through regulations on industry, instituting social welfare programs etc.) and then it encroaches on society in a "right" way (taking away personal liberties, pushing through legislation that benefits big business interests etc.).  The more the sate encroaches, the more the divisions within the state become meaningless up to the point where we have a system like we have today: a system where both parties stand for the same principles and the same policies.

It is time that we as Americans do away with this left/right divide (or at the very least, relegate it to the realm of social interaction and personal feeling) and adress the real problem: the state itself...

Dreams of Liberty (The State)                      
Feel the force of the broken ones
Blindly lashing at the branches
Afraid to strike the root and see
The end to their negative solidarity

Streets seethe under daylight’s pressure:
The negative solidarity movement marches forth.
But I remember as I stand here watching on,
That they say the night is always darkest before the dawn.

In fear the masses converge
Under banners devoid of vision,
Understanding,
And love.
No light of freedom glints in eyes
That look for solutions from above:

“The state will cure the sickness
of self-centeredness,
Greed,
And lust.
It will bring the order to our lives
Our cities,
Our nation,
Our trust.”

But the state can protect us only
From the violence we cause each other
Its touch never brings the love we crave
From every man as our brother.

It cements its rule with force’s power
That in love’s absence, projects a veneer
Of a nation’s people bound together
Though, in fact, they’re bound by fear

The state’s hand touches where we’ve succumbed
To the blind hatred that keeps us enchained
To our selfishness that preys on others
And acts on lies we’ve entertained.

The state lets us live with the folly
Of not looking our fellow man in the eyes
And knowing his pain, troubles and joy
While living with him every day of our lives.

I dream one day we’ll realize the truth
That our nation was not of fiat born
But birthed by freedom’s present light
From which the state has had us torn.

I dream one day we’ll see the truth
That love and freedom must lead the fight
Against state slavery and its chains
But ’till then we march:
Left, right,
Left, right,
Left, right.


Finally, I would like to point out that I am adding a new tag called "ideology in prose" which I will use to tag any post where i lay out a piece of my worldview in prose (as opposed to visual art, music or poetry).

Tuesday, May 15, 2012

Peak Government

I had to re-post this article because it succinctly articulates so much of what I feel against government intervention. 

Big government means no free market.  They tell us that the unbridled free-market caused the 2008 financial crisis and our inability to escape it.  This seems to be true since some of the biggest market players (and makers) are implicated in (and I would argue guilty of) the crimes of our time.  This argument, however, fails to consider the possibility that the very government that its adherents turn to in order to solve these problems might actually be the problem in the first place.  Take a closer look at some of the companies that are so reviled (for instance: Monsanto, Wall Mart, Exon Mobil, Goldman Sachs, JP Morgan etc.) and you will find that all have in common ties with the government or a business strategy of fitting into a dynamic in private society created by the government (Wall Mart for instance, fits into the "globalization" dynamic created by the Fed's cheap money that encourages excessive consumption and discourages productive pursuits  at the "center" [aka the USA] and moves production -at the expense of consumption- to the periphery [aka china et al.].  It also benefits from the Fed and Government because many of its patrons are also on Social Security, welfare, unemployment etc.).

Dis-empower the state  and you will end the reign (and the existence) of its parasite corporations.

Big government is also a symptom and a cause of the spiritual disconnection of humanity from its own experience of itself and, through this, a disconnection with the ecology in which it lives.  The transfer of risk from one's own shoulders -say, the risk of poverty and the social consequences of poverty- also transfer the face of the stranger who represents the problem (represents it as both cause and effect) -the face of the poor and the face of the cause of poverty (corrupt governments that team up with corporations and especially financiers to steal your wealth through inflation as they use the state to keep you on financial life support while they gut you and your children of your future)-  from your gaze.  This dynamic of appealing to the state re-enforces personal isolation and selfishness which ultimately re-asserts itself in society as something that requires more state intervention.  This selfishness, meanwhile,  runs rampant over people and environment as both are disregarded in the quest (which the state and parasite corporations have institutionalized) for money and power.

The only way to end this dynamic is to do it PERSONALLY.  This change goes down to the essence of one's existence (an essence which I have tried to capture in poems such as Displacement, Dance of Silence, Solution and Experiment 2) as well as the concrete actions in which we engage in order to change our unfeeling and corrupt world that we live in (I have also attempted to addressed this aspect of concrete personal actions and experience with the world in poems such as The Illusions of Progress, The Future of an Illusion and Dust). 

This article is re-posted from http://www.chrismartenson.com/blog/acknowledging-arrival-peak-government-part-1/75356 and was written by Charles Hugh Smith who writes on http://www.oftwominds.com/.

I don't necessarily agree with everything in the article but it's a great place to start.

Acknowledging the Arrival of Peak Government

Most informed people are familiar with the concept of Peak Oil, but fewer are aware that we’re also entering the era of Peak Government. The central misconception of Peak Oil -- that it’s not about “running out of oil,” it’s about running out of cheap, easy-to-access oil -- can also be applied to Peak Government: It’s not about government disappearing, it’s about government shrinking.
Central government -- the Central State -- has been in the expansion mode for so long that the process of contracting government is completely alien to the nation, to those who work for the State, and to those who are dependent on the State. Thus we have little recent historical experience of Peak Government and few if any conceptual guideposts to help us understand this contraction.
Peak Government is not a reflection of government services or the millions of individuals who work in government; it is a reflection of four key systemic forces that drove State expansion are now either declining or reversing.
The Four Key Drivers of State Expansion
The twin peaks of oil and government are causally linked: central government's great era of expansion has been fueled by abundant, cheap liquid fuels. As economies powered by abundant cheap energy expanded, so did tax revenues.
Demographics also aided Central States’ expansion: as the population of working-age citizens grew, so did the work force and the taxes paid by workers and enterprises.
The third support of Central State expansion was debt, and more broadly, financialization, which includes debt, leverage, and institutionalized incentives for speculation and misallocation of capital. Not only have Central States benefited from the higher tax revenues generated by speculative bubbles, they now depend on debt to finance their annual spending. In the U.S., roughly one-third of Federal expenditures are borrowed every year. In Japan -- which is further along on this timeline, relative to America -- tax revenues barely cover social security payments and interest on central government debt; all other spending is funded with borrowed money.
The fourth dynamic of Central State expansion is the State’s ontological imperative to expand. The State has only one mode of being, expansion. It has no concept of, or mechanisms for, contraction.
In my book Resistance, Revolution, Liberation: A Model for Positive Change, I explain this ontological imperative in terms of risk and gain. From the Central State’s point of view, everything outside its control poses a risk. The best way to lower risk is to control everything that can be controlled. Once the potential sources of risk are controlled, then risk can be shifted to others.
Put another way, once the State controls the entire economy and society, it can transfer systemic risk to others: to other nations, to taxpayers, etc.
In effect, the State’s prime directive is to cut the causal connection between risk and gain so that the State can retain the gain and transfer the risk to others. The separation of risk from gain is called moral hazard, and the key characteristic of moral hazard can be stated very simply: People who are exposed to risk and consequence act very differently than those who are not exposed to risk and consequence.
Every time the Central State guarantees something, it disconnects risk from consequence and institutionalizes moral hazard.
To take but one example of many, when the Central State guarantees mortgages so lenders and originators cannot lose and the borrower can’t lose more than his modest 3% down payment, then everyone in the chain is encouraged to pursue risky speculations because the State has disconnected risk from the consequence of a potentially large loss. The risk hasn’t vanished; it has simply been transferred to the taxpayers, who absorb the inevitable losses that result when speculation is encouraged.
Separating risk from gain inevitably generates systemic instability. The entire credit-housing bubble can be seen as proof of this dynamic.
All four of the causal factors itemized above are turning against continued expansion:
  • The key energy source of global transportation, liquid fuel, is no longer cheap and easy to access.
  • The demographics have reversed as the population of State dependents is soaring.
  • Debt has expanded to the point that servicing that debt now threatens the financial stability of the State and its currency.
  • The State’s separation of risk and consequence is generating systemic instability.
There are plenty of models of State expansion -- democracy, socialism, communism, theocracy, and so on -- and none for State contraction. This suggests that the down slope of Peak Government will be disorderly and rife with unintended consequences.
The Failure of Separation of Powers
The predominant Western model of governance assumes, incorrectly, that a “separation of powers” within the State will limit the State’s appetite for control. But rather than limit the State’s expansion, the State’s subsystems -- the institutions of executive power, legislative power and judicial power -- are competing to gain as much control as possible over both the State itself and the nation’s social and financial systems.
This competition doesn’t weaken or limit the State; rather, it lends the State a fearsome competitive advantage, as each institution gains power as the State expands. So even though the competition between the three may appear to limit the power of each, in aggregate this competition only increases the State’s expansion as each seeks to outdo the others in reach, influence, and power.
Regardless of which institution wins or loses a particular squabble, the State inexorably expands its control and power. And just as inexorably, elites within the State -- systemically protected from the risk created by their policies -- will experience a rising sense of omnipotence as their private power rises in tandem with the State’s expansion.
These powers also offer State elites a way to radically lower their own risk and dramatically increase their private gain by leveraging the State’s vast powers to their own private benefit.
In other words, not only does each agency and branch of the State seek to expand its reach and power, so, too, does every individual within the State who can leverage the power of the State to protect his/her own individual gain.
The State as Protector of Private Gain
The Central State is granted unique powers of coercion by its membership (the citizenry) to protect them from the predation of foreign powers, individuals, and subgroups seeking monopoly. The citizens grant the State this extraordinary power to protect their freedom of faith, movement, expression, enterprise and association and to insure that no subgroup can dominate the nation for their private gain.
Granting this power to the State creates a risk that the State itself may become predatory. To counter this potential, the State has the self-limiting mechanisms of a separation of powers such that no one institution or agency can dominate the State and thus the nation.
But as we have seen, the separation of powers has failed to limit the expansion of the State; rather, it has become a competitive advantage, feeding the State’s expansion. There are no State-based limits on the State’s concentration of wealth and power.
There is a great irony in this concentration of power in the State: the power is concentrated to protect the citizenry from predation and exploitation, but that concentration becomes an irresistible attractor for all those seeking to increase their private gain via monopoly, cartels, collusion, fraud, and other forms of predation.
The wealth that can be concentrated in private hands is not limited or self-regulated, and so private concentrations of wealth inevitably exceed the ethical threshold of individuals within the State (i.e., their resistance to bribes and self-interest). This structural imbalance leaves the State intrinsically vulnerable to the influence of private wealth. Once this wealth has a foothold of influence within the State, it can then bypass the State’s internal controls and become the financial equivalent of cancer: a blindly self-interested organism bent solely on growth at the expense of the system as a whole.
Rather than protect the citizens from exploitation, the State’s primary role becomes protecting the private gains of elites who have taken effective control of the State’s vast powers.
The Death Spiral of an Expansive State
We can now see that the Central State faces an impossible contradiction: to pursue its primary purpose of protecting the citizenry from predation, it is granted powers that enable it to evade its own self-limiting mechanisms. Private concentrations of wealth gain control over the State’s machinery of governance, and the resulting partnership of private and State elites suppress the mechanisms that were intended to limit private influence over State power.
To enhance their own power, these elites increase the State’s reach until it dominates the entire political, social, and economic system. This sets up an inherently self-destructive feedback loop in which the State’s actions to protect its self-serving elites weaken both the State and the nation. The State’s inefficiencies pressure the nation’s output, even as the State increases its share of the national income to maintain its self-serving elites and quiet its potentially restive dependents. The more the State expropriates, the less surplus is left for productive investment, and so the nation’s output continues to decline.
This dynamic creates a positive feedback loop (i.e., a death spiral) of higher taxes and lower investment in productive assets.

Wednesday, April 18, 2012

The Coming Collapse

The collapse is comming so stock up on food and gold, get to know your neighbors and find new ways to love...


The Coming Collapse
(March 28, 2012)

Our kingdom come
Which now stands lost
To its self-imprisonment in vice,
Finds itself in consonance
With the end its ways have wrought.

Soon we’ll find
Our only chance
To guide the blind
To righteous sight
-A chance that greets us with open arms
Opened by their lack of direction:

We herald now
The bell that tolls
For the impermanence
Of coddling waste,
Which brings with it destructive fires
That wipe away the cultures of decay.

We’ll stand among
The righteous flames,
Prepared to help
With loving hands
Those who survive the cleansing blaze:
Possessing eyes that see in firelight.

Burn
Will towers imprisoning minds!
Razed to dust
Will be walls that divide!
We must show this world new light
From which no one will want to hide.



Sunday, February 26, 2012

The Fiat Dollar

 There are two primary factors driving society's divergence from truth.  The first factor is one I attempt to remedy in my poetry by attempting to liberate consciousness from its own illusion.

The second factor is money: What we use as money (debt) drives and facilitates so many of the ills that plague our society today: mindless rampant debt-fueled consumerism, wars fought in order to support the dollar, political corruption and corporatism etc.

These two videos explain the structure of our fiat currency -the world reserve currency and the currency you have to own if you want to buy oil (unless you're buying it from Iran, but don't worry, Obama will make sure to change that).


Friday, February 17, 2012

The Truth About Politics



I have never agreed more with the host of a program on FOX. Needless to say this show was canceled shortly thereafter

Tuesday, July 19, 2011

Government loots Social Security to pay off banks

I completely expected this.  I never expected to collect SS in my lifetime since, like our monetary system, it has been designed as a ponzi scheme since its inception. 

http://www.zerohedge.com/article/senate-nears-debt-ceiling-consensus-which-revolves-around-changing-cpi-definition

so basically they are making the cuts by changing the way inflation is calculated so that they will be able to pay out less to those who put money in (the money SS pays out is adjusted for inflation).

It's really quite insidious.  This new way of calculating inflation "takes into account" the way people change their spending patterns when prices rise.  For instance... say a meal for 1 person earning $10,000 is $2 a meal.  Now say that the price of food rises astronomically so that it costs $20,000 for one meal.  The new government CPI calculation would look at this person and say "ok.  Food prices have gone up a lot and you definitely can't afford ANY food whatsoever.  BUT because you aren't buying any food, the inflation in food prices won't affect you."    You can clearly see what a scam this is. 

Arguing over a debt ceiling and budget cuts is pointless (too little too late) since there is no possiblity of us ever paying the debts off.  These extend and pretend policies only delay examination and acceptance of the fact/problem that our currency (the US dollar or Federal Reserve Notes [FRNs]) is a ponzi scheme and that this directly necessitates that our entire society is chronically (and unpayably) in debt.  The longer we extend and pretend, the more thouroughly our government and big, crony capitalist, financial institutions can loot our society.  Any solution is bound to be MASSIVELY painful because it will require that we acknowledge that none of these debts are ever going to be paid (deflation) or that they are completely worthless (hyper-inflation).  Of these two choices, the second one is far more likely since it is politically palatable: it allows the biggest debtors (the goverments and banks) to not make the politically difficult choice of default or bankruptcy.  Hyper-inflation allows these debtors to remain "solvent" until the end by allowing them to not be forced into  recognizing their own insolvency.

But no matter what happens just remember: they're all criminals and should be thrown into jail.