naked capitalism

charcad says:

r.e. “JPMorgan Bombing: Bomb Explodes At Bank Offices In Athens Huffington Post.”

This didn’t take long. Comments, Swedish Lex?

In case you missed it…”

Soon this will be, “In case they missed you…”

kevinearick says:

Constitutional Design:

Increasingly, I’m getting requests for a piece on constitutional design, largely from people who want to fast-forward to the endgame. On the one hand, it’s nice to have some idea where you are going before you start building the bridge. On the other, humanity is largely about exploration, not knowing where you are going, collecting tools/skills along the way, until old age, when we want to settle down. Having said that …

The economic relationships are size of agency inverse to amount of liberty to scientific inquiry to economic profit. The greater the relative size of agency, the less liberty, the less effective scientific inquiry, the less economic profit, greater economic loss. Agency is the brake, democracy is the steering wheel, and the market is the accelerator.

The market makers captured agency, redirecting its energy to acceleration and growing it to reduce liberty, like closing your eyes, holding the steering wheel tightly, and jamming on the gas. It’s fun for the crazy person, for a short period, but it’s badness for everyone over time. Wall Street is like a perpetual teenager, great energy, great output, but in need of a little guidance and some braking.

It defies logic and common sense to put pension money in the hands of a teenager, especially one you do not know. So how did it happen? The “founding fathers” mythology had to gain the consent of a robust, mobile, intuitive population, that was acutely aware of economic relationships. A constitution is an agreement in which the People, a collection of individuals seeking liberty, grant limited agency power, the collection of power in the hands of a few, to make redundant decisions efficiently, to place a brake on the market when it is moving faster than it can be steered by net individual liberty.

As the culture aged, market makers successively jumped the safeguards in the US Constitution to breed a governable population, to replace the system of government working for the people. The living constitution, designed to address system errors, was systematically replaced, on the argument of expediency, with a static constitution, designed to assign systemic errors to individuals, ensuring the outcome. As a result we now have corporations treated as private individuals and children treated as the property of agency, the looking glass. That is fascism, the forced reintroduction of feudalism as the guiding hand.

Fortunately, both the planet and the universe have vested interests in democracy; it’s the forward gate threshold bias. If democracy is excessively limited, if feudalism, a bimodal distribution, brings the reverse threshold bias, resistance to change, down below the forward gate threshold, environmental demand for change, the recognized economy is cut off from the primary planetary voltage source. It is cut off from resources, consumes everything that remains, in viral replication, collapses, and is recycled back into the system by symbiotic circuits.

The articulating mechanism between the planetary circuit and the human circuit is natural new family formation – effective durable, durable goods orders, efficiently delivered by the market, if the constitution is working properly. The financial pyramid ponzi scheme of wage arbitrage, that separates producers from consumers, to artificially increase returns to the pyramid, implemented through family law banking & credit preferences, has disabled that mechanism.

Democracy is not a function of government power. It is a function of liberty, a retained power of the People. Democracy is a function of diverse children learning for themselves how to play together, taking the lessons learned into their adult lives. The real job is parenting. If that is not done effectively, growing both diversity and interactivity, then everything between those clock punches ends up being a freak show, which you are now observing in the workplace.

$10.hr labor, serving machines, impractical managers, holding worthless pieces of paper, and corrupt politicians, held captive by global pyramid cartels, does not an economy make. Democracy requires a distribution of independent, self-sufficient economies, trading surplus, which are now being built in virtual space, because the nation/state geographic, demographic acceleration, ponzi scheme economy, controlled by global financial pyramids, is discharging to 0 volts.

In a functioning circuit/economy, voltage potential is created by the difference between small labor, on the leading edge of evolution, and Big Capital, completely protected from evolution, as the magnetic field seeks to exist just outside of control from the gravitational field. The semi-neutral middle-class capacitor between them stabilizes the voltage, creating a multiplier effect by opening the NPV window, to increase financial leverage.

The universe is a fulcrum of fulcrums, with supra-fulcrums monitoring sub-fulcrums, prepared to pull down the sub-fulcrums if they exceed error tolerances. The people, who are mobile, grant capital, which is otherwise immobile, government, in the interest of all parties, to balance development. Everywhere in the universe, the actual fulcrum mechanism supporting the platform become smaller over time, until the sub-fulcrum orbits into self-regulation. Otherwise the sub-fulcrum is collapsed for recycling. Government is moving in the exact wrong direction, for those becoming increasingly dependent, in a cancerous reproductive cycle.

The Constitution has become a growing set of stacks, individually growing out of control, as a government jobs program, because the means to pop laws off the stacks has been systematically eliminated, creating a labyrinth of recursive paths to enslave the people to agency. As legal doctrines develop with legal experience, examining the SYSTEM for correction, each horizontal legal doctrine developed should pop all unnecessary laws off all the stacks.

Small labor prefers to grow the fulcrum, by increasing the environmental tap, but must be prepared to restart from scratch. That is an evolutionary requirement, which capital cannot understand, because it is protected from evolution, passing mythology down from generation to generation, toward self-degeneration.

Glass-Steagal was the last stable system, but it reached its limit. The Internet was doing its job, increasing self-governance through increased communication, to pop parts of it off the stack over time, until the Internet was capitalized to serve the interests of the few. Wall Street accelerated the dismantling of Glass-Steagal, while simultaneously increasing dependence on government, now a lackey to the global pyramid cartels.

There you are. There are reasons why small labor is willing to give Paul Volcker the benefit of the doubt, and no one else. He has been to the big show, he is motivated to correct previous errors, and he presents a good balance to the perpetual teenagers on Wall Street. Along with the bloggers to keep everyone’s feet to the fire, there is some justification for the extra work to preserve the thread of History across the ac half-cycle changeover.

By the way, if deficits don’t matter, why can’t individuals print their own money? Could they do any worse than the Treasury-Fed-Bank-Wall Street infinite loop?

IF says:

Cute piece on Fischer and Schroeder. Thanks for picking it up.

MrMoney says:

I am getting a strong impression that those in position of power do not understand the Pandora’s Box they have opened with ever increasing sovereign leverage.
At this point, I wonder if a collapse is unavoidable.

http://whatisthatwhistlingsound.blogspot.com/2010/02/do-gold-deflation-mix.html

Alex says:

Hmm…the antidote picture somehow seems symbolic of the public sector and the Greek economy.

alex black says:

I saw the Antidote du Jour and thought for a moment that I was accidentally on Jesse’s Cafe Americain blog, looking at another of his French appetizers. Bon appetit!