Posts Tagged ‘capitalism’

Marxism

Sunday, December 30th, 2018

The flat earther sees the earth is flat.

He then distorts or ignores all contrary evidence. The flat earther cannot explain why when I call my grandsons at sunrise, they are watching the sun set, nor why the stars in southern sky rotate around one point, while the stars in the northern sky rotate around the opposite point.

If you ask the flat earther about these issues, he will give a completely idiotic and incoherent explanation that that supposedly shows that sunset and the rotation of the stars actually prove the earth is flat. His explanation makes no sense, but if you complain that his explanation makes no sense, he will repeat it with added emphasis and demand that you present a rebuttal, even though you have just presented a rebuttal. If you repeat your rebuttal, he will again tell you that no one has rebutted him, and again repeat with ever greater confidence and certainty his completely incoherent and nonsensical explanation of why one person on a flat earth is watching the sun set, at the same time as another is watching it rise.

Similarly, a 911 troofer denying the airliner sized and shaped entrance hole in the Pentagon, and telling you that World Trade Center building seven suddenly went into free fall for no plausible reason. No matter how many times you tell him the photo shows an airliner size and shaped hole, and no matter how many times you tell him his video shows building seven starting its fall like a tree notched by an axeman, tilting to the south towards the terrorist notch cut in the building, and towards the square to the south of it, he will tell you that is not what the video shows, not what the photo shows. Or more likely change the subject, tell you a hundred things equally untrue, and then after telling you one hundred other things, then again tell you the photo does not show what shows and the video does not show what it shows. And this just goes on. He just will not concede what is in front of his eyes.

And, similarly the Marxist. But while Flat Earthers are stupid, ignorant, and crazy, and Troofers are stupid, ignorant, crazy and dishonest, Marxists are stupid, ignorant, crazy, dishonest and murderous.

Marxism, trooferism, and flat earthism all consist of breaking all the evidence in order to make it fit a bad theory. At some point, you notice stuff is not adding up, you have to toss your preconceptions, and start over. But whereas flat earthers ignore inconvenient evidence, and 911 troofers lie barefaced about inconvenient evidence, Marxists not only ignore evidence and lie about evidence, but murder witnesses, often major portions of the population.

The erroneous theory of Marxism is Marxist Class theory and Marxist economics. Marxist class theory makes no sense because they reify social classes as if they were individuals, as if the class was a single person with a single will, and Marxist economics makes no sense because they ignore the creation of value by capital and entrepreneurship.

A Bronze age Greek navigator settling the Aegean sets sail.

A rower asks him “Where the hell are we? We are lost.”

Navigator says “That is Kasos. Over there is Karpathos.”

Rower says “No it is not”

Navigator tells him “Shut up and row. Karpathos looks like that when you are this far away from it.”

A Marxist talks of “Capital” as if “Capital” was a person, a single person who rules the world.

Thus the Marxist theory of history is that capitalism is very recent, and consists of “the burgher” taking power from “the lord”. Not “a burgher”, nor “a lord”

In fact, of course, the French revolution was not burghers taking power, it was burghers having their property confiscated, and then being guillotined.

The world was capitalist for thousands of years before its most recent feudal period, it was capitalist during the most recent feudal period, and it was capitalist after the most recent feudal period.

A Marxist thinks that “Capital” is one person, and that that one person rules, that “the capitalist class” acts as one person, as a socialist central planner.

A Marxist sees coordination, that bread is delivered the supermarket, concludes that all capitalists are one capitalist, that all firms are one firm, that big capitalists command little capitalists, thinks the world is a socialist system with a central planning office in Wall Street.

Perhaps a simple way of clarifying what Marxist Class theory is, is that if you believe in Marxist Class theory, it logically follows that “Capital” was rationally pursuing his self interest by successfully seizing power from the French aristocracy, and you will with great confidence come up with some clever explanation of why this seizure of power and successful pursuit of self interest resulted in so many capitalists losing their possessions, and so many of them losing their heads.

A Marxist thinks that capitalists rule. He concludes therefore that capitalism is recent, since at sometime in the past, kings and aristocrats ruled.

Thus a Marxist thinks that the french revolution was “the capitalist class” seizing power from the feudal lords, and therefore it was in the interests of “Capital” to do this. Of course in actual fact, the french revolution immediately resulted in most capitalists having their property seized and resulted in very large numbers of them being executed.

The French revolutionary government debased the currency, and then set maximum prices for bread and such, with the natural result that no bread was available, whereupon it immediately set to work executing bakers, farmers, and so on and so forth, an outcome that businessman usually expect in any change of power, since any time power changes hands there tends to be a period of mobile banditry following the overthrow of the previous stationary bandit, until a new stationary bandit appears. The overthrow of the Aristocracy was utterly devastating to the interests of the capitalist class, and they violently opposed it from the beginning, but were terrorized into submission many of them being murdered in that terror.

If someone tells you capitalism is recent, he is a commie, and he plans to murder you. If someone talks of “Capital” as though it was a person, he is a commie, and he plans to murder you.

Thus the Trotskyite tells the peasant with one cow that his real enemy is the “kulak”, the peasant with two cows, and that the peasant should therefore ally with the Trotskyite Jews from the big city to kill his neighbors cows. “Hail fellow member of the oppressed classes. Jews are oppressed too you know”

Meanwhile the Trotskyites are telling the Orthodox Jews “Hail fellow Jews, we are suckering these Christians into allying with us Jews, and when we have them fighting each other, we will destroy them”

And so the Jews help the peasant with one cow kill the cows of the peasant with two cows. “Hah hah, says the Trotskyite, “Hail fellow Jews. Now that this Christian is socially isolated, we will take his seed corn. ” So they kill the cow of the peasant with one cow, then they pour petrol over his children and set them on fire to force him to reveal where the seed corn is buried, then they force him to dig up the seed corn, and then they kill him.

Then the Trotskyite, who never really cared about the seed corn, grabs one of his fellow Jews, and tells him he is a capitalist hoarder and oppressor of the masses, and tortures him with pliers and hot irons into revealing where his gold coins are. And having obtained the gold coins, tortures his supposedly fellow Jew some more, in the hope that there are more gold coins, but since there are no more gold coins his fellow Jew expires under torture.

Then the Trotskyite points out that all the noble work he has been doing for the oppressed victims of capitalism makes him holier than Stalin, and Stalin piously concedes his superior holiness, but finds some excuse to kill the Trotskyite before the Trotskyite is in a position to kill Stalin

The leftist who tells you “Hail fellow member of the oppressed, lets knock over this apple cart and grab some apples”, is very likely after your apple cart and your apples. Thus they announce they are friends of the American working class, who should ally with them against evil billionaires, while seeking to destroy the working class in favor of an imported vote bank living on crime and welfare – hence spotted owl, global warming, Paris Treaty, wildfires, and TransPacific Partnership.

Leftists were always telling us that the TransPacific Partnership was a plot by our evil capitalist overlords seeking cheap overseas workers, but it was Obama and the Democrats pushing it, and Trump and the Republicans that killed it.

The Marxist thinks that capital is one being, but in fact, “capital” is your local Domino’s franchisee, who is likely a white male like yourself, and likely about the same wealth as yourself, differing from you by about as much as the peasant with two cows differed from the peasant with one cow.

Troofers don’t stick to any one story of what supposedly happened at 9/11, flat earthers don’t try to make sense, and Marxists don’t try to make sense either, circularly arguing that since capitalists rule, anti capitalist actions and policies are actually pro capitalist. Thus, for example, capitalists supposedly want to be taxed to support fatherless spawn, so that they can sell them stuff.

Failure of reality testing: Same problem with Marxists, flat earthers, and Troofers.

Flat earthers are stupid, but not evil. Too dumb to realize they are not making sense.

Troofers and Marxists are stupid and evil, and because Marxism is a rationale for murdering innocent people and taking their stuff, Marxists a lot more evil than Troofers.

One sees stuff that seemingly does not make sense – the islands of the Aegean viewed by a flat earther, the absence of a banged up airliner in front of the Pentagon, the fact that there is bread on the shelves, and start concocting a nut theory.

Round earth makes sense of what you see. Rule by “Capital” fails to make sense of what you see. You can see the capitalist right in front of you when you buy a pizza, and he is not “Capital”

One’s physical intuition is led astray by the vastness of the earth, so that it looks flat except under rather special circumstances.

And under those special circumstances (navigating by looking at distant familiar landmarks over a long distance of ocean), one is apt to get weirded out as one’s flat earth intuitions fail, and to avoid unnerving weirdness, one either has hang close to shore, or stop looking at familiar distant objects, or actually see the roundness of the earth as one sees the roundness of a child’s ball and know in your guts that you have traveled a small but perceptible angle around it.

The navigators of the Chinese treasure fleets had to hang close to shore for psychological reasons, sailing a very indirect and dangerous route to minimize the disturbing sight of landmarks falling below the horizon. The irrationally shore hugging path they followed shows them to be flat earthers, while Europeans have known the world was round since before the dawn of history, probably as a result of settling the Aegean Islands.

The islands of the Aegean are close enough that you can generally see one from another, but far enough apart that if you are navigating by looking at the land on the horizon, you are going to be weirded out and get lost if you fail to recognize you are navigating on the surface of a sphere,

A troofer’s intuition for small objects colliding at low speeds is misled by big things and high speeds. He expects to see a banged up commercial airliner sitting in front of a dent in the Pentagon, so he tells you there is no aircraft wreckage.

In fact, everyone in the vicinity reported a rain of aircraft wreckage in sizes from confetti to pocket handkerchief. The plane flew inside the building, creating Wiley Coyote style hole in the building, a commercial airliner sized and shaped entrance hole, and then exited the building in a very wide variety of paths and ways, mostly in the form of very small pieces, the largest intact part being one of the wheel hubs.

Had the troofer watched more Wily Coyote cartoons and fewer Scrooge McDuck cartoons, he would have found the commercial airliner flying into the Pentagon easier to believe.

“What?”, thinks the troofer. “Where is the banged up airliner sitting in front of the Pentagon?”, and then proceeds to construct an enormously over elaborate conspiracy theory, which overcomplication rapidly descends into incoherence. And because his theory makes no sense, it becomes a pile of lies, in part he deludes himself, but in part he intentionally and maliciously deludes others, so a natural error of erroneous intuition becomes a system of deliberate lies propagated by malicious, hostile, and disruptive conspiracy, which inevitably becomes a vehicle for evil people pursuing evil purposes, madness promoting evil, and evil promoting madness.

The Marxist see the natural order of the market and assumes it was commanded by a single entity: Today “Capital”, an entity with a striking similarity to Satan, that commands the world through Wall Street.

So if someone is working at the corner store, the Marxist does not see the shopkeeper as working for himself, even if the shopkeeper himself owns the shop and is right in front of the Marxist. Rather he sees the shopowner as yet another employee of “Capital”.

The Marxist observes that things generally work, that there are light bulbs in the sockets, bread on the shelves, toilet paper in the toilets, and assumes this coordination occurs by command of a single entity, assumes that we are already socialist, that we always have been socialist, it is just that some time in the past the commander was “the feudal class” and now it is “Capital”, or “the Capitalist”

Genuine and natural error leads to genuine delusion, genuine delusion to loss of interest in having a consistent and complete story, logical incoherence to deliberate and conscious lying, systematic and coordinated lying becomes an evil priesthood pursuing evil purposes by evil means, vicious, hateful, degenerate, and depraved, while the underlying genuine error means that the evil, hatred, malice, and cynical manipulative lies never entirely replaces the genuine and unfeigned madness, stupidity, and ignorance

The Marxist thinks that Capitalism is a system of government, that Capitalism is the government, that the government puts bread on the supermarket shelves. The Marxist thinks that “You did not build that”

The capitalist took all this stuff from the lords, thinks the Marxist, so the Marxist will take all this stuff.

If moneyed interests controlled America’s armies, they would be a hell of a lot more interested in oil than in opium. Why aren’t the Arabs savages in the desert on the fringes of a petrocolonialist patchwork? Why is America not putting the ludicrously weak Venezuelan government to the sword and replacing it with ExxonMobil? Why is development in Antarctica forbidden?

I wish America’s armies *were* controlled by moneyed interests. If the US army was fighting for “Capital”, Venezuela and Saudi Arabia would be divisions of Exxon Mobile. That the war is in Afghanistan, rather than Venezuela, shows that it is about performing the holy sacraments, not profit.

Abortion is a holy sacrament. Nine year old girls putting a condom on a banana is a holy sacrament. And to these sacraments they have recently added the holy sacrament of twelve year old boys forced to wear dresses and forced to sit on the lap of a transexual. The Afghan war is being fought to force Afghans to perform our sacraments. If we were fighting for sane and practical reasons, if we were run by “capital” rather than a holier than thou priesthood, we would invade Venezuela, which is sitting on an enormous lake of oil which their internal disorder prevents them from pumping effectively, and a pile of gold which they cannot mine, because every time they make a deal with a mining company they attempt to shake down the miners before the miners have actually extracted any gold.

Venezuela is where the oil and gold is. Afghanistan is where the heresy is. Plainly, therefore, we are ruled by priests, not warriors.

The inability of the Venezuelan government to pump oil or mine gold falsifies Marxist economics, and the fact that we have not put their ludicrously weak government to the sword and converted them into an ExxonMobile division falsifies Marxist Class theory.

Modern type capitalism, the capitalism of the for profit joint stock corporation, the capitalism of Ayn Rand’s hero engineer CEO mobilizing other people’s capital and other people’s labor to advance technology and make it widely available, the capitalism that gave us technology and industrialization, started with the restoration, centuries after feudalism in the sense of William the Marshal ended, and centuries before feudalism in the sense of warrior and aristocratic power, the system of Russia before World War II, German before World War I, and England before the Crimean war, ended. England industrialized under divine right monarchy.

Corporate capitalism makes it possible for capital to be put in the control of smart people, though it certainly does not guarantee it, thus makes industrialization and technological advance possible. This is entirely orthogonal to the system of government. Today Dubai is simultaneously feudal, monarchic, and corporate capitalist, as England was from 1660 to the early nineteenth century, and it looks to me to have a technological lead on the USA and England, though its system of governance would be familiar to a Middle Easterner of the ninth century.

The worse the reality testing, the greater the evil. Thus communists enormously more evil than Nazis, Nazis more evil than the darkly enlightened, because their purported virtue comes cheaper.

Observe that as progressives get further and further out of contact with reality, their evil gets greater and greater, as for example their support of wildfire policies that burned eighty five rural whites alive.

Communists were originally more evil than progressives, because Class theory was more deluded than that all men are created equal. But as progressives accumulate more delusions, they become more evil, because their ever greater purported virtue becomes ever more detached from reality.

Poz, capitalism, and free markets.

Wednesday, August 1st, 2018

Is there a connection between free markets and Poz. Is a sound reactionary polity somewhat socialist?

In the comments some have been making the stupid argument that poz is the result of evil Jewish capitalists pursuing profit, that gay marriage was promoted to sell wedding cakes, which argument scarcely deserves a reply.

But others have been making more sophisticated arguments, which arguments deserve to be promoted into a post.

Obviously sound economic policy is trade with outsiders, which requires the Christian program of peace with outsiders, which is apt to result in the hyper Christian holier than Jesus program of surrender to outsiders.

Obviously the Libertarian Party promotes free markets, and also promotes poz that will at best result in whites being ethnically cleansed out of America, and males being spiritually castrated, and at worst could result in whites being physically genocided and males being physically castrated. This started with the nineteenth century English prime minister Gladstone building a coalition between economists and the hyperpuritan leftist evangelicals, which was swiftly devoured by the left, and ever since then libertarians have been trying to revive that coalition by accepting ever greater levels of ever more suicidal poz and ever more emasculating poz.

So in this sense, obviously there is a connection between sound economic policy and suicidal poz, manifest in the logic of trade, manifest in the holiness spiral of Christianity, manifest in Gladstone and manifest in the Libertarian party.

(But not however manifest in capitalists selling wedding cakes to gays, nor in capitalists selling mortgages to cat-eating illegal immigrants with no income, no job, and no assets. Obviously making marriage gay reduces marriage, does not increase it, obviously gays do not get married except to humiliate Christians and prevent straights from getting and staying married, and obviously selling mortgages to cat-eating unemployed illegal immigrants loses money. Obviously very few non Asian minorities can successfully handle a substantial mortgage, thus attempts to provide a substantial number of non Asian minorities with substantial mortgages inevitably and entirely predictably blew up in the loss of a trillion dollars. Whiteness predicts loan repayment better than credit history, except for the longest and most stringent credit histories. Even Asian nonwhites have substantially higher levels of credit scam for the same level of credit history, and non Asian non whites are all scammers, as near to all of them as makes no difference, just as all female CEOs and board members blow up the company as if it was a marriage to a beta male. If a non Asian nonwhite repaid a mortgage, it is solely because he flipped the house for a profit, and the real estate agent had to take the back payments on the mortgage out of the sale, in order to deliver a clean deed to the buyer. If he had a clean credit history before he took the mortgage, it was faked up. All women are like that, and all non asian minorities are like that.)

Carlylean Restorationist argues

Are you happy with Poz so long as there’s a free market liberated from central planners?

I’m sorry but I’m just not, at all. I’d rather live in 1988 Berlin not because I love five year plans, Soviets deciding what brands of breakfast cereal will be on the shelves (if any) and tanks on every corner.
I’d rather live in 1988 Berlin than 2018 Berlin because 2018 Berlin’s violent, rapey and full of filth, while 1988 Berlin isn’t.
I’d feel safer, more at home, in the 1988 version of Berlin.

(I use Berlin rather than London not because of any preference for it – quite the opposite in fact. The reason is that 1988 Berlin had the worst kind of economic policy imaginable to one of our mindset. The thing is, in spite of that policy – or (red pill) because of it – it doesn’t suffer from what 2018 Berlin suffers from under global relatively free trade.)

Well yes, but the brown face of the Democratic party, like Venezuela, has close to the worst economic policy imaginable, and also at the same time has poz at ethnic cleansing levels, in that the whiteish minority is being driven out of Venezuela Kristallnacht style.

Eighteenth century England had reasonably sound economic policy, and also far less poz than any twentieth or twenty first century society.

So, if we compare 1988 Berlin with 2018 Berlin, or with the suicidal ethnomasochist globohomo policy of the Libertarian party, looks like a strong connection between sound economics, and suicidal poz.

If we compare eighteenth century England, with Gladstone’s England, looks like a strong connection between sound economic policy, and seriously damaging levels of poz. Gladstone began today’s attack on the family, began the replacement of marriage with child support, and turned the British empire into the anti British empire, foreshadowing today’s anti American “International Community” empire.

If we compare the Libertarian Party with almost anyone, looks like a strong connection between sound economic policy, suicidal ethnomasochism, and globohomo self castration.

On the other hand, if we compare Trump’s America with Venezuela, or Trump with the brown face of the Democratic Party, or eighteenth century England with almost anywhere, looks like a strong connection between sound economic policy, free markets, and lack of poz. The libertarians attack Trump for insufficient capitalism, and insufficient poz, while the brown Democrats attack him for excessive capitalism, and insufficient poz.

The emancipation of the Russian serfs was simultaneously suicidal poz, and bad economic policy. I read that the “lavish lifestyles” of the nobility were harshly curtailed, and I also read that famine followed so it would seem that the lavish lifestyles of the serfs were also harshly curtailed. Which only makes sense if leftism did exactly what it always does: Knock over the apple cart to grab the apples. The emancipation of the serfs was a disaster for almost everyone in agriculture, particularly the serfs. The emancipation of the serfs was a disaster from day one, and steadily got worse and worse all the way to the liquidation of the kulaks, because the emancipation was accompanied by the introduction of collective land ownership. The correct solution was to emancipate serfs without land, converting them into agricultural laborers, tenant farmers, and sharecroppers. But the left was already campaigning vehemently against emancipation, and had it been done that way Alexander would have gone down in Whig history as worse than Vlad the impaler. So in Czarist Russia we see a connection between unsound economic policy, and poz leading to suicidal poz. Bad economic policy, in the form of collective land ownership, led to more poz, which eventually led to a disproportionately Jewish communist party taking charge. (Albeit Stalin continued bad economic policy while massively reducing poz.)

So yes, there is a connection between sound economic policy and ethnomasochistic rule by globohomos, since sound economics favors peace with outsiders, and favoring peace with outsiders is apt to blur into favoring surrender to hostile outsiders.

But Charles the second introduced sound economic policy at the same time as he exiled poz, and burned poz at the stake for heresy.

Cladistic analysis of neoreaction

Thursday, September 5th, 2013

As humans are bony fishes, and the Cathedral the heretical spawn of Cromwell’s puritans, the neoreaction is the heretical spawn of Libertarianism and anarcho capitalism.  Consider for example the blog title Anarcho Papist.

The Dark Enlightenment is libertarians mugged by reality, a libertarian who realizes that the eighteenth century was right about women, and Bull Conner right about blacks..

An anarcho capitalist favors a free market in law and defense agencies, defense agencies that are in many cases the private property of individuals and small groups.  A neoreactionary is an anarcho capitalist who thinks that a monopoly defense agency that is the private property of one man (monarchy) or a cartel of defense agencies that are the private property of a few men (feudalism) is not so bad after all.  Hence, throne conservatism.

He concludes that, progressivism being an official religion, therefore an official religion is unavoidable.  He suspects that most people need religion to persuade them to act sensibly, hence, whether Atheist or Christian, he endorses altar conservatism. (Or in the case of Israel, Temple Judaism.)

Thus libertarianism mutates into throne and altar conservatism, as puritanism mutated into militant atheism. (more…)

The Flaw in Moldbug’s proposed dictatorship.

Saturday, October 27th, 2012

Obviously democracy is not working, is failing catastrophically.  The productive are outvoted by the gimmedats, in large part non asian minorities and white sluts. Moldbug’s solution is simple:  Dictatorship, evolving into Monarchy.  The dictator, he hopes and expects, will fire all government employees, except for military, police, and some tax collectors.  What use are all the rest of them to a strong dictator?

A good government is a stationary bandit, since a stationary bandit has an incentive to shear the sheep, rather than flay them.  A bad government is a mobile bandit, and the government service in democracies increasingly approximate mobile bandits.  Each bureaucrat seeks to increase his power and wealth, even if the total burden is well above the Laffer limit.

The trouble is that a dictator is not necessarily a stationary bandit:  A secure dictator, for example a martial and charismatic monarch of a long established dynasty, is a stationary bandit.   Unfortunately, not only are long established dynasties in short supply, but when you have one, the legitimate heir to the throne is seldom martial and charismatic. (more…)

Decline of the west

Friday, November 26th, 2010

The last man on the moon left in 1972

The tallest building in the united states was finished in 1974.

Cars are becoming humbler.

US electricity production was growing exponentially until 1972.  After 1972 it grew more slowly.  Per capita electricity consumption  seems likely to have peaked around 2007 or so.

Supposedly GDP is still growing rapidly, just as supposedly inflation is zero, but it seems improbable that GDP is growing when per capita electricity consumption is not.

One could present all sorts of rationalizations for the decline in manned space exploration – for example that manned space exploration was a polite way of demonstrating superior capability to nuke the other side, and supposedly we are so much more civilized and mature now that the need for such chest beating has diminished.

However, by 2000, we have more compelling evidence of decline.  The buildings damaged or destroyed in 9/11 have not been repaired or replaced.

The west is the past. America sinks into Eurosocialism, while Europe becomes the western satrapies of the new Persian empire. Every rising civilization was a lender, innovator, and investor, every declining civilization a borrower.  California used to be the place where the future was invented, but no longer.

The west’s lead was California’s lead.  And California is no more.

Where, for example, was the netbook commercialized?  Who invented and built the “Amazon” Kindle?  Who is today creating the blue light lasers that are the core of every DVD reader and writer?

The Kindle was developed in Taiwan, by Eink.   It is some standard computing parts wrapped around a new display technology invented, developed and manufactured by Eink.

Indians looking to study abroad rate Melior in Singapore higher than Stanford in the USA.

Today, our universities turn out people trained in political correctness and “diversity”.  Every male CS graduate can parse a boolean expression, but most female CS graduates cannot, indicating that a male needs to be able to parse a boolean expression to get a CS degree, and a female does not. The end stage of this process is that no one needs to be able to parse a boolean expression, but everyone needs to be able to hate dead white males.

China leads the world in coal to liquids technology.

China leads the world in internet based transactions.

The simplest explanation for the fact that western research seems to have fallen off a cliff is that we are now reaching the point where hating dead white males is a more important academic qualification than anything else.  Doubtless it is in reality more complicated than that, but the simplest explanation works quite well:  Consider, for example, the recent demonization of Chagnon.  The most striking factor was the ignorance and stupidity of the academic associations condemning him.  They just did not know stuff.  It was as if they don’t read books by dead white males, as if they feared that reading such stuff might contaminate their minds with dangerous thoughts.

What we have had for some time in academia is theocracy, not meritocracy, and theocracy tends to promote those whose faith is most zealous and reliable.  It is easier to have zealous and reliable faith if you are dumb as two planks glued together.

Who is at the top of Academia:  I suppose the tip top crust are the people who condemned Chagnon, and people like the leading scientists of global warming, Mann and Phil Jones, who are demonstrably not nearly as smart as I am.  Mann, for example, keeps making ludicrous and amateurish mistakes in his statistics, and any time Phil Jones wants something scientific done, he summons a post grad, and tells the postgrad to produce a chart that proves such and such, suggesting that Phil Jones cannot produce such charts, nor tell if the chart actually does prove such and such.

Mann’s work demonstrates he is simply stupid.  Mann’s power over other scientists demonstrates that simply stupid people are on top.  Stupid people on top provide a simple explanation of why science does not get done.

How did Mann get to the top?  By telling the state what it wants to hear, by political correctness.

Demonstrably, the people in charge of science and research are not the tip top crust.  They got where they are by hating dead white males more than anyone.

The fact that undergraduates are marked on the basis of race, gender, and political correctness is fairly harmless.  That academics get power over other academics on the basis of political correctness has not been so harmless, and we are today paying the price, in that western research is failing.

Singapore has sustained its rate of growth.  Taiwan has sustained its rate of growth.  Therefore China is likely to sustain its rate of growth.

Assuming China grows like Singapore from now on, and the US grows like Europe (counting European growth as real, even though such growth as occurs is government employees, whose product is valued at cost, which cost grows at astonishing rate) then China should surpass the US in total GDP by 2019 or so.

China should surpass the US in GDP per head, as Singapore already has, by around 2045 or so.  Taiwan should surpass the US in GDP per head in 2018 or so.

The financial system of the west is collapsing because the fed and its bureaucrats have the mission to replace financial panics with wise regulatory authority – which might work if wise regulatory authority had the will to punish elite wrongdoing the way financial panics did, and resist the desire of politicians to use the financial system as a piggy bank for vote buying the way bankers threatened by financial panics did.  Since brave regulators are not to be found, the replacement is not working.

The last time the west stalled, it stalled for four hundred years under intellectual stagnation induced by theocracy, from 1277 to 1648.

We are seeing multiple simultaneous crises.  Academia is a thousand loudspeakers controlled by one microphone, and that microphone in the hands of an idiot.

All the massive financial crime that the financial crisis exposed <http://blog.jim.com/economics/mortgage-fraud-predatory-borrowing.html> continues unpunished and unabated, foreshadowing another, even bigger financial crisis coming up fast.

The graffiti on the buildings that are now owned by the Federal Reserve foretells our future.

We are also seeing an explosive gold rush in government as rent seeking monopolies multiply.  Thus it used to be, for example, that the local council gave itself a monopoly of water and sewage, though there is in practice no rationale for the sewage monopoly – septic tanks and highly localized sewage farms are more economical.  Large centralized sewage facilities beloved of councils and council unions suffer severe diseconomies of scale due to the high cost of  piping sludge any reasonable distance. Seeing the lucrative flow of money, every other level of government gets into the act.  Just as to get anything done, a private individual needs multiple permits from the council, each requiring him to hire numerous “consultants” at $400 per hour, the council needs multiple permits from state and federal governments, requiring the council to hire numerous “consultants” at $100 000 per hour.  The tip is emitting methane!  Oh the horror.  Someone official comes to officially look at the methane, charges  $100,000 for looking, and issues an enforceable “recommendation” for an open ended and indefinite series of remediation measures, each of which will require another look.

Oh what did we do before there were people to officially and highly scientifically investigate the fact that tips are apt to pong?  What would we do without government to supervise government?  And surely any problems that might occur can be easily remedied by providing yet another layer of regulatory authority to regulate the regulators that are regulating the regulators that are regulating the local council.

This, like the housing boom is unsustainable.  A single monopoly will charge inefficiently high prices and produce inefficiently low product, which is indefinitely sustainable. Multiple layered monopolies suffer a coordination problem that results in them charging infinite prices and producing zero product, as each attempts to get the majority of the squeeze.

This problem is remediable only through collapse or foreign conquest.  As I have remarked several times, the reason that Dubai can build high towers and we no longer can, is that in Dubai, you only need the approval of one theocrat and one holy religion.

I hope for collapse, since foreign conquest is likely to be unpleasant.  Last time around, however we had stagnation for four hundred years.   Collapse would be preferable.

Democracy is self destructing, as it inexorably moves further and further to the left – the fate of the past democracies of Athens and Rome.

How to fix the financial crisis

Friday, May 21st, 2010

Proposed reforms, both left and right, are unlikely to have any effect on the continuing massive misappropriation from the financial system.  It is absurd that people are discussing obscure details of the credit swap market.

To fix the financial crisis, we have to revoke, or at least denounce and denigrate, Marie Curie’s Nobel prize.

When they gave a Nobel prize to Marie Curie for being female, that did not hurt anyone except more deserving potential Nobel prize winners.  But handing out phony Nobels on the basis of sex, race, and nationality necessitated handing out phony degrees on the basis of race and sex, and handing out phony degrees on the basis of race and sex necessarily led to a crisis where these phony degrees were being ignored by employers, so employers necessarily had to be forced to give out well paid phony jobs on the basis of race and sex.

But being given well paid phony jobs on the basis of race and sex failed to result in recipients living a middle class lifestyle, so lenders had to be forced to give out a middle class lifestyle on the basis of race and sex.

Which has led to our present financial crisis.  It all began with Marie Curie.  Each lie required a new and bigger lie.  We need to start by acknowledging that genders and races tend to have different abilities – that if you are looking for people that are the best at something, whether the fastest runners or the greatest mathematicians, they will almost all be of one particular race and gender, and some races will be completely absent, and if you are merely looking for people that are acceptably good at something, for example accountants, basketball players, or donut makers, they will be mostly of one particular race and gender.

We cannot end the crisis unless we admit who is defaulting on their mortgages, we cannot admit who is defaulting without admitting that they cannot perform their jobs either, we cannot admit they cannot perform their jobs without admitting that their degrees are phony, and we cannot admit their degrees are phony without admitting that many Nobel prizes, starting with Marie Curie, were phony.

Yale Harvard and Basel style Free Enterprise

Sunday, May 16th, 2010

After the collapse of socialism, the elite support free enterprise – they support it the way they support free speech.

If anyone is allowed to disagree with the orthodoxy taught at Yale and Harvard, or even doubt it, this endangers the free speech of people from Harvard and Yale, and similarly if any enterprise run by people from Harvard or Yale could go bust, this endangers the free enterprise of people from Harvard and Yale.

Basel II is tens of thousands of pages of regulations, no one knows how vast it is, because not all the regulations can be found in any one place, but it could all be replaced by two simple rules:  Politically correct victim groups shall always find it easy to borrow money, regardless of their ability or intention to pay it back, and politically well connected businesses shall always make money, regardless  of whether they are competently run or not.

The seeds of the crisis were the CRA and the ratings agencies.  I have discussed the CRA at length, but the CRA would have been resisted had it not been for other changes in the system that insulated the players against the consequences of making bad loans.  These changes, guaranteeing that badly run businesses would succeed, started with the bailout of the ratings agencies in the seventies, forty years ago.

Back then, the ratings agencies were in trouble, because they had made a lot of bad calls.  It seemed that whenever an institution was going under, the guys at the credit rating agencies were the last to know about it.  Back then, they sold their assessments of credit risk to subscribers. So no one wanted to subscribe.

So in the seventies, the regulators stepped in to make people use the credit rating services. In 1975 the SEC created the Nationally Recognized Statistical Rating Organization (NRSRO) designation. Credit rating agencies so designated received what was in effect a grant of governmental power. The SEC then relied on the NRSRO’s credit risk assessment in establishing capital requirements on SEC-regulated financial institutions – which meant that for SEC-regulated financial institutions to borrow and lend, they had to get rated.  A cascade of regulatory decisions followed over the years, each decision forcing more and more reliance on the risk assessments issued by these demonstrably incompetent institutions – and less and less reliance on other people’s risk assessment.  For more and more organizations, it became illegal for them to make their own judgments about risk.

By the 1990s, as Levine and Partnoy tell us, the NRSROs were not selling assessments of credit risks, but licenses to issue securities.  The rating agencies did not genuinely assess risk, nor did anyone really expect them to.  Nor could repeatedly demonstrated incompetence reduce demand for their services, so the ratings agencies had no incentive to provide correct credit ratings.  Since their income was entirely dependent on the state granting them power, they did, however, have an incentive to make politically correct credit ratings.  If you lend to the poor, the oppressed, etc, and you are run by good old boys from Yale and Harvard, and you make donations to the right politicians, the NRSROs have a very powerful incentive to give you a good credit rating.  And if you have a good credit rating, you can borrow as much as you like – and if you go bust, the government will bail you out.

Badly run companies that had been empowered to borrow as much as they pleased got in trouble – and were bailed out for the same reasons as they had been empowered to borrow as much as they pleased.

In addition to corruptly favorably rating the politically correct, the NRSROs corruptly favorably rated those who simply gave them money, which is perhaps what those who complain about “deregulation” have in mind.  The banks creating structured financial products would first pay the rating agencies for “guidance” on how to package the securities to get high ratings and then pay the rating agencies to rate the resultant products – a glaring conflict of interest, though one less apt to lead to bailouts when the proverbial hits the fan.

Now since all this dirty dealing has cost the taxpayer trillions, you may well ask what measures have been taken to punish the NRSROs for bad conduct, or give them incentives for better conduct in future, or indeed restrain them from continuing to do this stuff?

All the strengthened regulation is regulation to make people continue to treat NRSRO ratings as true, even though it has become horrifyingly apparent that the ratings are generally false.  All the strengthened regulation is more of what caused this mess in the first place.  Any real reform would necessarily start by abolishing the legal privilege of NRSROs, would have to start by rolling back regulations to what they were in 1974.  Instead, compulsion and bailouts are being applied to make NRSRO ratings true, or to enable people to continue pretend that they are true.  Their power has been increased, their misconduct unpunished, and their incentives have become even worse.

Chinese GDP to surpass US by about 2016 or so

Friday, August 14th, 2009

We are already seeing some people heading off to China and opportunity: “Shut Out at Home, Americans Seek Opportunity in China”

According to the CIA, not always a reliable source, China’s 2008 GDP is about 7800 000 000 000$, US 2008 GDP is about 1429 000 000 000$.  Since China is growing about nine percent faster than the US …

In many important respects it has already surpassed the US.  Innovation in the US is very rapidly drying up, while we are seeing dramatic and important innovations coming out of China – for example improvements in the synthesis of liquid fuel from coal, the new CBHD (High density DVDs at low density prices), and critical advances in the most esoteric of the pure sciences, General Relativity.  They are on the leading edge in heavy industry, consumer goodies, and basic pure research.

Although Mainland China is in part still a centralized command economy based on terror, pillage, and murder, in other important ways it is vastly more capitalist than the US. It absorbed capitalism from Hong Kong, which was a lot closer to the hard core capitalism of Manchester and the Industrial Revolution than the diluted and castrated capitalism of the US and Europe, therefore can expect rapid growth rates that catch up to Hong Kong and Singapore, thus massively surpass the US and Europe.

It is often said that America has rule of law and China does not, yet we have lost track of the difference between rule of law and rule of lawyers:  Reflect on the numerous outrageous patent-the-wheel lawsuits and the destruction of the light plane industry when lawyers discovered they could sue people who build planes for not building them as wisely and well as lawyers and courts supposedly would have.  The car industry and the vaccine industry nearly went the same way, requiring federal interventions that suspended what we are now calling rule of law for some industries, but not others.

A big Chinese advantage is that their political elite is less arrogant and less out of contact with reality.  It is willing to acknowledge that government interventions can fail, can have bad results.  When government intervention fails cataclysmally in the US, then that branch of the government is immediately given more wealth, power, and prestige, that area of the economy promptly becomes more socialist.  When government intervention fails in china, then that branch of the government eventually loses wealth, power, and prestige, that area of the economy becomes less socialist.  Thus remaining socialism in China are those parts of socialism that are functioning well, while newly expanded socialism in the US, for example accounting, finance, and perhaps soon health care, is failing disastrously.  The American governing elite is solidly immersed in a cloud of lies and denial, rationalizing away, or simply lying barefaced, about all their failures.  The Enron case led to increased government intervention against truthful accounting, rather than diminished government intervention against truthful accounting, the disastrous losses from affirmative action lending led to an increased takeover of the finance industry, and we are likely to soon see the same in health care.

The Chinese elite still tends to the traditional chinese and communist view that the political elite are the genuinely productive ones, and the entrepeneurs are parasites, and if they were to act on that view, they would return China to the poverty and chaos it has long endured.  Because of this continual threat, the entrepeneurial class in China is to a substantial extent overseas based and cyberspace based.  Chinese companies are largely run through servers located in tax havens, but such non violent defenses could easily fall to a sufficiently determined attack.  Meanwhile, however, the US government is engaged in a sufficiently determined attack on tax havens, having recently successfully pressured the Swiss to deny financial services to Americans, blissfully unaware of the increasing dependence of the American economy on entrepeneurial skills and knowledge mediated through such havens.  Interpreting the golden goose as a parasite, as a challenge to their authority and a rejection of their superior wisdom, they prepare to slay the golden goose.

obamanomics

Thursday, May 7th, 2009

Megan nails it:

the government is using its intervention in the banking system to pressure banks to give special deals to the government’s special friends.

Securitization

Wednesday, May 6th, 2009

From the point of view of oligarchs and crony capitalists, the crisis is not that a lot loans were made to no hablo English wetbacks. The crisis is that people are rejecting securitization of debt.

The Obama regime’s capitalism smashing measures are intended not to destroy capitalism, nor to install socialism, but to restore securitization of debt. This is socialism for the financiers, not for the proles:  Crony socialism, crony capitalism, a fascist economic order.

Regular old fashioned loans are going through just fine. There is no credit crisis, the financial system is not freezing up. Securitization is freezing up, and it @#$% well should freeze up.

When debts are securitized, many different debts of many different borrowers are piled together into a great big pool of debt, and then shares in the pool are sold to lots of creditors – which means that there is no one person responsible for verifying that any one particular loan is sound, that the assets securing the loan are worth what they are supposed to be worth, that the person responsible for making payments on the loan can read and write, that he speaks the language that the papers that he signed were written in, that he was sufficiently sober when he signed them to remember signing them, or even that the paperwork exists and is in good order.

For securitization to work, the particular organization that arranged the loan, and the particular people in the particular organization, would have to remain responsible for that loan.  The debtor would have to be making payments through the people that arranged the loan for the life of the loan.

Securitization leads carelessness with large sums of other people’s money. Such carelessness leads to crime. Crime destroys the trust that is necessary for the economic system to work. Securitization must stop. If securitization continues, capitalism will end. By and large, those who favor continued securitization are wealthy criminals, who personally benefited from stolen money, as over the years carelessness slowly became indistinguishable from deliberate fraud.   The problem before Obama was not lack of regulation, but that the foxes were regulating the chickens, and now under Obama the foxes are still regulating the chickens.  Each Obama intervention has the effect of keeping the criminals in power over other people’s money, resisting the natural propensity of capitalism to purify itself through creative destruction.

Securitization was born in fraud:  The original motivation for securitization was the 1995 Community Reinvestment Act. If the government is pressuring you to make loans on the basis of race, rather than willingness and ability to pay one’s just debts, you want to get rid of the politically correct mortgages to some other sucker as fast as possible.

Securitization of debt is only legitimate when the people that arranged the loan remain linked to the loan.  Otherwise, securitization is a scam, as the origins of mortgage securitization demonstrate.