[104657] in Cypherpunks
Re: capitalism run amuck by Korton
daemon@ATHENA.MIT.EDU (Soren)
Mon Oct 26 08:42:24 1998
Date: Mon, 26 Oct 1998 09:28:56 -0500
From: Soren <sorens@workmail.com>
To: cypherpunks@cyberpass.net
Reply-To: Soren <sorens@workmail.com>
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Vladimir Z. Nuri wrote:
<BLOCKQUOTE TYPE=CITE>Your Mortal Enemy
<P>Faceless bankers now move two trillion dollars around the world every
day,
<BR>searching for quick profits, breaking national economies and putting
ever
<BR>more pressure on natural wealth. What's to be done? Slay the beast
of
<BR>capitalism, says David C Korten, and return money to its proper role.</BLOCKQUOTE>
Faceless -- oooh that sounds creepy. National economies -- by all
means, we must maintain our favorite 19th century institutions. Natural
wealth - sounds like an oxymoron. The beast of capitalism -- we all
know that beasts mean you harm, while good decent socialists are only twisting
your arm for your own good. Money is any form of token used to communicate
value, from bricks of gold to bricks of cocaine. What has seriously gone
wrong with the role of money, is that it has been divorced from any intrinsic
value -- largely due to the meddling of the various stripes of do-gooders,
collectivists and distributivists. What this guy can't seem to grasp,
is that there is a distinct difference between capitalism in a free market,
and the kind of corporate-capitalism that the world is enmeshed in now.
The former allows for the free exchange of value based upon the participants
understanding of that value. The latter is all bound up in nebulous
concepts such as "natural wealth", "legal tender", "zero sum economies"
etc.
<P>An assumption is made that I fundamentally disagree with -- democracy
is the holy grail of human social intercourse. Never, in recorded
history, has democracy existed without the support of client slave states/populations.
Democracy is nothing more than a rationalization for the majority to oppress
the minority. It has always lead to the creation of a ruling class
of administrators, switching it to a minority oppression of the majority.
With this kind of thinking, the KKK is a thoroughly democratic assemblage.
The majority have decided that you should be hanged, so you should go along
peacefully and place your own neck in the noose. I've said this before,
but its a whisper in a propaganda hurricane, The US is not a democracy,
it is a republic. For those of you who don't know the difference; a democracy
puts everything up for grabs, including your life, liberty and the pursuit
of happiness, while a republic provides 'certain inalienable rights', similar
to those currently being alienated by the Klinton Kongressional Klan.
<P>This polemic is filled with all kinds of emotive language typical of
the new-liberal, correct-think agenda. Look out for words like <U>must</U>
and <U>will</U> and <U>should,</U> hallmarks of the unseen coercive central
planner.
<BLOCKQUOTE TYPE=CITE>For those of us who grew up believing capitalism
is the foundation of
<BR>democracy, market freedom, and the good life it has been a rude awakening
<BR>to realise that under capitalism, democracy is now for sale to the
highest
<BR>bidder, the market is centrally planned by global mega-corporations
larger
<BR>than most countries, denying one's <U>brothers</U> and <U>sisters</U></BLOCKQUOTE>
Strange, why would my brother and 2 sisters be talking to this guy?
<BLOCKQUOTE TYPE=CITE> a source of livelihood is now rewarded as an
economic virtue, and the <U>destruction of</U>
<BR><U>nature </U>and life</BLOCKQUOTE>
How exactly, can natural beings - humans - destroy nature?
Does he mean change the expected outcome in some way that him and his brothers
and sisters disapprove of?
<BLOCKQUOTE TYPE=CITE> to make money for the <U>already rich</U></BLOCKQUOTE>
The enemy is identified. This is socialist rant #1 -- 'soak the rich
until there ain't no rich no more'.
<BLOCKQUOTE TYPE=CITE>is treated as progress. The world is now ruled by
a global financial casino staffed by <U>faceless </U>bankers and hedge
fund speculators who operate with a <U>herd mentality</U> in the <U>shadowy</U>
world of global finance.</BLOCKQUOTE>
Shadowy people in a shadowy world -- sounds like Washington D.C.
<BLOCKQUOTE TYPE=CITE>Each day they move more than two trillion
<BR>dollars around the world in search of quick profits and safe havens</BLOCKQUOTE>
So slow or no profits and unsafe havens are better?
<BLOCKQUOTE TYPE=CITE>sending exchange rates and stock markets into wild
gyrations wholly unrelated to
<BR>any underlying economic reality.</BLOCKQUOTE>
This <U>is</U> the underlying economic reality.
<BLOCKQUOTE TYPE=CITE>With abandon they make and break <U>national economies</U>,
buy and sell
<BR>corporations, and hold the <U>most powerful politicians</U> hostage
to their
<BR>interests.</BLOCKQUOTE>
We do have an answer to that last one ...
<BLOCKQUOTE TYPE=CITE>When their bets pay off they claim the winnings as
their own.
<BR>When they lose, they run to governments and public institutions to
protect
<BR>them against loss with pronouncements about how the poor must tighten
their
<BR>belts and become more fiscally prudent.</BLOCKQUOTE>
Simple, lets close the public trough and dismantle the gravy train.
<BLOCKQUOTE TYPE=CITE>In the United States, the media keep the public preoccupied
with the
<BR>details of our president's sex life and calls for his impeachment for
lying
<BR>about an inconsequential affair. Meanwhile, Congress and the president
are
<BR>working out of view to push through funding increases for the IMF to
bail
<BR>out the banks who put the entire global financial system at risk with
<BR>reckless lending.</BLOCKQUOTE>
IMFs are the ultimate in fiat currencies, backed only by political will.
<BLOCKQUOTE TYPE=CITE>They are advancing financial deregulation to encourage
even more <U>reckless</U>
<BR>financial speculation. And they are negotiating international agreements
<BR>such as the Multilateral Agreement on Investment intended to make the
world
<BR>safe for financial speculators by preventing governments from intervening
<BR>to regulate their activities.</BLOCKQUOTE>
The governments, of course, are the tools of the people, and can be trusted
to regulate wisely.
<BLOCKQUOTE TYPE=CITE>To understand what is happening we must educate ourselves
about the nature
<BR>of money and the ways of those who decide who will have access to it
and
<BR>who will not. As a medium of exchange, money is one of the most useful
of human inventions. But as we become ever more dependent on it to acquire
the basic means of our sustenance, we give to the institutions and people
who control its creation and allocation the power to decide whether we
shall live in prosperity or destitution.</BLOCKQUOTE>
Repeal legal tender laws and their handmaiden, taxation. In laissez-faire
Hong Kong in the '70s, banks printed their own 'banknotes' - all different
sizes, colors and denominations, and all acceptable Hong Kong dollars.
The security of each such currency, was the security of the institution
and the amount by which it inflated its money supply. It was common
for people to have accounts in several banks and to move their money between
banks based upon the relative value of the bank's currencies. In
such an economy, fiat valuations automatically cause the currency to diminish
in its usefulness, and to ultimately go out of business. If you control
the forms of acceptable money, there is little option but to use a fiat
backed currency.
<P>The chimaera represented here, is that accumulation of wealth necessarily
expresses itself as a desire to wield power over others. On the contrary,
the creation of a common political currency of power necessitates the exercise
of power in order to keep accumulated wealth. Solution: abolish
the common currency of power as wielded by the state.
<BLOCKQUOTE TYPE=CITE>With the increasing breakdown of community and governmental
social safety
<BR>nets, our money system has become the most effective instrument of
social
<BR>control and extraction ever devised. The fact that few of us think
of the
<BR>money system as an instrument of control makes it more powerful and
<BR>efficient as an instrument of wealth extraction.</BLOCKQUOTE>
Personally, I would't trust any assemblage of more than 7 human beings
with my welfare. The anonymity provided by such concepts as 'community'
and 'governmental social safety nets', encourages, and probably mandates,
corruption.
<BLOCKQUOTE TYPE=CITE>What of capitalism, the self-proclaimed champion
of democracy, market
<BR>freedom, peace and prosperity? Modern capitalism involves a concentration
<BR>of wealth by the few to the exclusion of the many; it is more than
a system
<BR>of human elites. It has evolved into a system of autonomous rule by
money
<BR>and for money that functions on autopilot beyond the control of any
human
<BR>actor or responsiveness to any human sensibility.</BLOCKQUOTE>
I must have missed that proclamation. Probably too busy paying taxes
and otherwise knuckling under to the democracy.
<BLOCKQUOTE TYPE=CITE>Contrary to its claims, capitalism is showing itself
to be the mortal enemy
<BR>of democracy and the market. Its relationship to democracy and the
market
<BR>economy is now much the same as the relationship of a cancer to the
body
<BR>whose life energy it expropriates.</BLOCKQUOTE>
Notice he says market, and not free market. How he can use democracy and
market in the same sentence eludes me. Democracy means people get
to coerce the behaviour of others. The market defines how people
interact with each other. I can only infer he suggests people coerce
how people interact. Capitalism is the cancer on this noble ideal, because
it expresses the notion that human interaction can occur without the need
for any noble tinkering.
<BLOCKQUOTE TYPE=CITE>Cancer is a pathology that occurs when an otherwise
healthy cell forgets
<BR>that it is a part of the body and begins to pursue its own unlimited
growth
<BR>without regard to the consequences for the whole.</BLOCKQUOTE>
The whole what? cancer? He obviously doesn't approve of those not
in lock-step with the 'body politic'. Perhaps the cell doesn't forget,
so much as it chooses to break free of the unhealthy body to which it belongs.
<BLOCKQUOTE TYPE=CITE>The growth of the
<BR>cancerous cell deprives the healthy cells of nourishment and ultimately
<BR>kills both the body and itself. Capitalism does much the same to the
<BR>societies it infests.</BLOCKQUOTE>
Mutation is the basis for evolutionary advance.
<BLOCKQUOTE TYPE=CITE>One reason we fail to recognise the seriousness of
our predicament is
<BR>because we fail to see how capitalism is destroying the world's real
<BR>wealth. It destroys social capital when it breaks up unions,</BLOCKQUOTE>
Like we need another layer of government in the work place. This is the
mantra of the rainbow coalition, isn't it? Unions as in sexual union, you
come together until you achieve 'le petit mort', then you roll apart. Its
pathetic to try to prolong it any further. Once you've achieved your goal,
why do you need the union? Perhaps the dominance game is the goal?
<BLOCKQUOTE TYPE=CITE>bids down wages, and treats workers as expendable
commodoties,</BLOCKQUOTE>
In a truly free market, there are no wage slaves that don't choose to be.
<BLOCKQUOTE TYPE=CITE>leaving society to
<BR>absorb the family and community breakdown and violence that are inevitable
<BR>consequences. It destroys <U>institutional capital</U> when it undermines
the
<BR>function of governments and democracy by weakening environmental health
and
<BR>labour standards, and extracting public subsidies, bailouts and tax
<BR>exemptions which inflate corporate profits while passing the burdens
of
<BR>risk to governments and the working poor.</BLOCKQUOTE>
Institutional capital? hasn't this already been replaced by IOUs?
<BLOCKQUOTE TYPE=CITE>We arejust beginning to wake up to the fact that
the industrial era has in
<BR>a mere century consumed a consequential portion of the natural capital
it
<BR>took evolution millions of years to create. It is now drawing down
our
<BR>social, institutional and human capital as well.</BLOCKQUOTE>
The old zero-sum equation again. If I make a profit, it had to have
been made at someone elses expense. Humans have, quite literally, only
scratched the surface,of the 'natural capital' of this planet. A bacterial
culture on a bowling ball.
<BLOCKQUOTE TYPE=CITE>Democracy and markets are wonderful ways of organising
the political and
<BR>economic life of a society to allocate resources <U>fairly</U> and
efficiently
<BR>while securing the freedom and sovereignty of the individual.</BLOCKQUOTE>
"Those who would sacrifice liberty for increased security, deserve, and
will receive, neither".
<BLOCKQUOTE TYPE=CITE>But modern capitalism is about using money to make
money for people who already have
<BR>more of it than they need.</BLOCKQUOTE>
According to who?
<P>There's more, but I can feel the bile rising ...</HTML>
