Economic Collapse – Game Changer for Global Markets

1 11 2010

Building Asset-Based Market Infrastructure Best Alternative for Global Economy

(Updated 102408 – Formatting)

(RePosted 110110)

DJIA 9 October 2008

DJIA 9 October 2008

 

 

Few doubt that the collapse of the world economy will be a Game Changer. But the change needed is to a new game – a new infrastructure.  Not a set of minor changes to the same game.

What is the “game?”  The current model, which has gone down like a house of cards in a stiff breeze, is one tilted towards the interests of corporations, governments, and against those of the Individual.  It is based on various gradations of slavery, wage-slavery, consumerism predicated on freely available credit at usurious rates, predatory lending practices against victims disarmed by law, and perpetual debt.  We have created a debt-based global political economy, not an asset and equity based model.

Yet a non-debt based economic system is what we, the Individual Humans who collectively comprise the global economy, need the most.

We need to base our 21st Century political economies on equity, and assets.  Debt is a tool to grow equity and assets, not a substitute for it.  (Unless You are designing a slavery or permanent indentured sort of system.  It’s tougher to do that in a civil democracy.  And bear in mind the sort of Individually held asset and equities basis of global political economy hypothesised here is not the same as asset-egalitarianism.  It merely alludes to a reworking of the global financial system in a way that moves the advantage to the Individual accumulation of wealth over the current emphasis and advantage accorded to the corporate concentration of wealth.)

DJIA 15 October 2008

DJIA 15 October 2008

It is truly ironic that the heedless masters of the universe who invented opaque and impossible to value derivatives, hedges, indices and credit default swaps, and the predatory mortgage instruments they stood upon – It is truly ironic that they have so cannibalised the engine of this debt economy – Consumer Spending – that they have effectively killed this goose that laid such golden eggs for so long.

As Mike Whitney observed in his recent article at CounterPunch,

No job is safe. American elites and corporate tycoons are loading the boats and heading for foreign shores. The only thing they’re leaving behind is the insurmountable debt that will be shackled to our children into perpetuity and the carefully arranged levers of a modern police-surveillance state.”

The past three weeks have seen the front line dominoes tumble as the jury-rigged infrastructure of perma-debt collapsed before the eyes of those reputed to for years to be the smartest and boldest “risk takers” leading the global economy.  The most rabid force for de-regulation, the US Republican Party led by George W. Bush, is winding up its occupation of the Oval Office by nationalising the most pivotal parts of the US Banking System.

One by one, the remaining investment institutions have queued up for a government bailout that gives governments an equity stake.

Source - Hoover Institute

US - China Trade Deficit Growth Through 2006 : Source - Hoover Institute

Of course, in the US these massive infusions of government cash and guarantees are backed by the Treasury – which means borrowing from other nations, principally China.  And the repayment of this new debt will naturally fall on the US taxpayer, absent any serious reform.

LIBOR and the TED Spread are only immediate indicators of the credit market’s liquidity. The larger issue of infrastructure reform needs to consider how to build an asset-based, as opposed to debt-driven, political economy.  And that means encouraging the accumulation of assets and equities by Individuals, as opposed to corporations.  This impacts the structure and regulation of credit markets.

International leaders participating in the upcoming series of summits need to pay particularly meticulous attention to this.

For unless they obey the current inflection point and switch the game over to an asset-backed model of consumer spending, no amount of government intervention will preserve the current debt-driven model based on cannibalised captive markets.

Bubble Gum, Spit, and String

Such efforts as purchasing toxic assets, and injecting captial into the banks are short term patches of bubble gum, spit and string, and I surely hope our international leaders realise that.  There are already signs from the banks such injections, alone, won’t work.  The upcoming series of economic summits needs to focus on establishing a long term market model that honestly gives Individual Citizens a fair shake, and a more prominent role as stakeholder in the global system.

In the recent past I have been pessimistic about the real willingness of our leaders to address the root causes of this crisis.  On September 26, before the bailout was passed, in an email to Congress,  I asked “Where is the call for an international summit with our WTO trading partners, particularly China?”

But the pressure on the US by international leaders for it’s participation in a series of summits to address the current crisis in the economy gives me cause to reconsider my cynicism.

Consumer Savings

Consumer Savings

For this culture of debt, the dead end is clearly visible.  In the past 20 years and more Congress has let the Consumer Credit industry run hog wild, more recently letting predatory mortgage instruments do the same.  Debt.  Not assets.  Not equity.

In this sort of environment, consumer spending drives everything.  Like Love, it makes the world go ’round.  Henry Blodget did a lucid piece the other day on ClusterStock, entitled “US Consumers are Broke.”  I highly recommend it.

Equity/Asset Based Games vs Debt Games

If our global economic system threatens to collapse, as it is, and if consumer spending (particularly US consumer spending) is the engine; then we need to pay particularly close attention to the infrastructure changes our international leaders will try to design to address the crisis.

We don’t need to merely patch up the existing debt-based paradigm, except on the shortest term.  What we need to do is change the game to an asset and equity basis.

Consumer Debt

Consumer Debt

Consider:  Consumer spending is vital to either game as the driving force, but only in an asset / equity based economy is it guaranteed to grow, because the game is designed to build up the middle class – not hollow it out with predatory, usurious, and perpetual debt.

Consumer Credit should no longer be used as an Orwellian cyber-leash on the populace.  Instead, in building an asset-based market, the Individual owns and excercises real and legally enforceable control over their credit and other financial information.  The role for reporting agencies are transformed to data services competing to be the delivery agent for the Individual.  That means a much more direct relationship with those who would access that information – which would no longer be the sort of commercial product that automatically becomes subject to data mining.

Real protections against predatory lending instruments need to be instituted – that means no more Adjustable Rate Mortgages (ARMs), no more Balloon Payment, or Interest Only, or so-called option-ARMs.

WikiMedia - Credit Card -CC

That also means a cap on credit card rates, and a prohibition of unilateral rate changes based on the consumer’s account status with any other lender.  So one’s credit card rate doesn’t suddenly jump from 8 to 62 percent because you forgot to pay the electric bill last month – a bill you never pay with that credit card.  But the card company data mines your payment stream, sees the omission, and cranks up the rate.  Such behavior tends to gut the future ability of the account to maintain a credit relationship, and is thus cannibalistic of it’s own market.

This is what has happened to the US Consumer in this economic game of debt.  This is why the US Consumer is broke.  This is why the US Consumer is wary of credit, mortgage, and investment instruments tilted against them.  Any serious infrastructural reform that will last must address these very real concerns, and not just give them lip service.

Money To Be Made- More Reliably in Asset Based Economy

If US consumer spending has been such a great engine for growth and expansion in international trade, think of what a robust middle class would mean when combining the consumer spending of the US, China, India, and the EU.  In an international monetary system driven by the Individual accumulation of wealth, the emergence of a solid middle class would be an increasingly strong economic engine.  Perhaps international leaders should consider flattening the economic landscape in their upcoming efforts to build a newer, more resilient global economic system.  Rules and regulations should be guided by the express intent to enable and build up individual assets and equities, as opposed to corporate debt.

We must abolish the current idea of “minimum” wage and migrate to the concept of the Living Wage, indexed to the actual cost of living.

We need to encourage the invention of financial instruments for Individuals which give them certain and distinct advantages over existing corporate institutions, as a safeguard of their ability to accumulate wealth and contribute to the engine of asset and equity based consumer spending.  Predatory corporate and financial instruments are a certain death to such aims.

This means eliminating all taxes on personal income, personal savings and investments, to encourage and facilitate the accumulation of wealth regardless of class.

This will mean not just more banking regulation and tighter supervision over the mortgage and derivatives markets, but increases in wages across the board, across the world, in all countries participating in this restructuring.

In a global political economy that properly uses debt as just another tool to facilitate the building up of the actual wealth of the People, and not as a centerpiece to drive markets,  the health and robust growth of a more reliable form of Consumer Spending is ensured.

That’s all I have time to write for this weekend.  More later. Until then, the Fabulous O’Jays!

-dcm

Update 110110

Obama’s Big Chance – The New WPA

Sphere It!





Pardon Bradley Manning Mr. Obama

15 08 2010

UPDATE 081510

UPDATE 031611 – fixed relocated video

Bradley Manning is a good Soldier who does not obey unlawful orders.  If he actually leaked anything it was in fulfillment of his Oath to defend the Constitution against all enemies, domestic and foreign.

President Obama, do You seriously want to try to expand Parker v Levy [1][2][3]and the “Separate Society” of UCMJ in this climate?  Sure, maybe You can get SCOTUS to go along, but if You do You may have a revolt.  And if SCOTUS doesn’t go along You risk the bullshit decision of Parker v Levy being overturned.

You’re a smart guy, Sir.  Wisely avoid this particular battle.  Pardon Bradley Manning.  He’s a National, nay, International Hero.  If You find it too logistically difficult, politically speaking, to honor him, at least Keep Your Promises to Protect Whistleblowers and protect Him.

Oh, and one more thing.  Don’t murder, kidnap, or torture ahem detain or “interrogate” any Wikileaks Team member. They are working for Peace, and our ability to have sufficient access to History to know where we are.

Are You, Mr. Obama?

:dcm

UPDATE 081510

Listen to the SCOTUS Parker v Levy Opinion:




Hear the  SCOTUS Parker v Levy Oral Arguments:




:dcm 081510 1505hrs

Here’s a video from

From the original oojamaflipper video notes:

oojamaflipper | August 13, 2010

link to petition: http://www.petitiononline.com/manning…

Support Website: http://www.bradleymanning.org/

facebook page: http://www.facebook.com/savebradley

contact Bradley –
Inmate: Bradley Manning
3247 Elrod Avenue
Quantico, VA 22134
USA

Brig phone: +1 (703)432-6154
Brig fax: +1 (703)784-4242

wikipediapage on whistleblowing: http://en.wikipedia.org/wiki/Whistleb…

many thanks for the protest clips: http://www.youtube.com/user/liamh2

how wikileaks can save the world: http://www.youtube.com/watch?v=od3PYThcVqs

stalk me: https://twitter.com/#!/oojamaflipper





Cover Of The Rolling Stone – Dave Manchester

25 07 2010

Figured I’d try this one, as a Lark…— dredeyedick

July 24, 2010

from http://bit.ly/bBishu

The Cover of the Rolling Stone” is a song by Shel Silverstein satirizing success in the music business.

Its narrator laments that his band has not been featured on the cover of Rolling Stone magazine despite having the superficial attributes of a successful rock star, including drug usage, “teenage groupies, who’ll do anything we say” and a frenetic guitar solo.The song was first recorded by Dr. Hook & The Medicine Show, reaching number six on the U.S. pop chart. It was the band’s second single, and the band did get on the cover of Rolling Stone — albeit in caricature rather than a photograph and with the caption “What’s-Their-Names Make The Cover”.

BBC Radio refused to play the song, as it contained the name of a commercial publication (Rolling Stone) and could therefore be considered advertising. The song was re-recorded and rush released in the UK as “The Cover of the Radio Times” (Radio Times being the name given to the weekly television and radio guide published by the BBC), which did find its way onto playlists.

Vodpod videos no longer available.





April 5, 2010, and Still WaitingForTheFederals

10 04 2010

Here’s the latest video I’ve had a chance to upload from the weekly jams I’ve been recording.

The tale is told of slaves in the American South at the end of the Civil War singing this to one another, hearing the gunboats coming up the river.

An online search turned up this accounting of lyrics.  More importantly, it turned up this banjo rendition.  It seems a useful reference archetypal symbol, musically speaking.  Moreover, I found this awesome list!

Since February 1, 2010, I have been posting video of the old time jam and hobo music at John’s Pub in Mystic CT on monday nites (the jam, not the posting).

All are mirrored at

I hope You Enjoy these as much as I have enjoyed making them!

Cheers, Dave Manchester

Vodpod videos no longer available.





Funk Break for Holidays

25 12 2008

Stanley Clarke, Marcus Miller, Victor Wooten

Thank You Guys.  Happy Holidays All.

-dcm





Sh*T-for-Brains Yellow Journalism: WFTV, Barbara West, Bob Jordan

26 10 2008

(Update I)

<rant>

To the General Manager of WFTV

Your interview Thursday with Joe Biden was not a tough interview, as many have held.  It was an ambush interview. Perhaps Barbara West and Bob Jordan learned how to be Journalists from Bill O’Reilly‘s sprititual forefatherJoe Pyne.

Not simply an ambush, this interviewer’s questions were not simply woefully uninformed as the Obama camp would have it, but they were outright insulting to the intelligence of any reasonably educated and informed Viewer.

Ironically part of the title of the above video feed on YouTube says “Real Reporter Asks Real Questions.”  Neither characterisation is true, judging from the content.

First, the questions about ACORN.  Both candidates have a history with ACORN.  So?  Would not a balanced interview follow up with a question about GOP efforts to remove voters from the rolls in multiple states?

You seem to want to make something of the so called “redistribution” of wealth.

Excuse me, WFTV, what do You think the US Tax Code is?  Both Democrats and Republicans have had a hand in it’s design.

Little wonder Biden thought it might be a joke.  To a real Journalist it would have been.

Pre-2008 Collapse - Effect of Bush 2001 Tax Cuts on National Debt

Pre-2008 Collapse - Effect of Bush 2001 Tax Cuts on National Debt

What do You think the immense 1.8 Trillion dollar tax cut was, when Bush was forced to sue to get into the White House in the 2000 attempted election?  Does this Biden interviewer know who got most of that money?

Does this interviewer know anything about the corporate loophole filled US Tax Code?  Does this interviewer have any familiarity at all with Republican legislation for the past eight years in this regard?

Ask them who benefitted the most from Bush’s tax giveaway of our surplus.  If they don’t know, fire them for nonfeasance.  If they DO know, fire them for ignoring the facts and preparing a set of interview questions intentionally false to fact.  Karl Marx indeed.

According to Hal Boedeker’s blog on the Orlando Sentinel,  the Obama campaign cancelled a second interview with Biden’s wife.

WFTV news director Bob Jordan said, … “Mr. Biden didn’t like the questions,” Jordan said. “We choose not to ask softball questions.”

Jordan added, “I’m crying foul on this one.”

Cry whatever You want, Bob.  If You think these were “hardball” questions, You should probably should go back to whatever You were doing before You decided to try Your hand at the news business.  Because based on this interview, You don’t know what the hell You’re doing.  You are either disingenuous, or actually do know nothing about recent events with regard to tax legislation, corporate lobbying, or what has passed for social policy under republican governance.  And You need to know about such things to be a news director, Bob.  You really should.

Here is how the interviewer, alleged “veteran Journalist” Barbara West, responded to the reactions to her encounter with Biden:

I think I asked him some pointed questions. These are questions that are rolling about right now and questions that need to be asked. I don’t think I was rude or inconsiderate to him. I think I was probing and maybe tough.

So, let me get this straight, Barbara, veteran that You are:  You choose Your questions based on what is “rolling about right now?” What does this mean?  That You mindlessly parrot whatever questions other equally uninformed talking heads are mindlessly parroting about now?  Or that You choose Your questions based on what Your uninformed “news director” hands You without any actual research into the subjects of the interview on Your part?

I am a Journalist.  And I am insulted, appalled, and aghast at the prospect that Your station, WFTV, would have the temerity to represent this “interview” as anything remotely resembling responsible, researched, informative Journalism. As a thoughtful, reasonably intelligent Citizen trying to do due diligence in informing myself about the important issues facing our country, I’m insulted.  Looking at this interview, I couldn’t blame any Journalist or Journalistic Blogger who cares about the integrity of their information for wanting WFTV‘s hide for a doormat for such a breach.

It wasn’t decent Journalism.  As a thinking being, I can assure You that it was not.  It was an attempted hi-tech lynching (apologies to Clarence Thomas).  It was crap.

As much has been made of Joe Biden’s tendency to be verbose, or commit gaffes by shooting from the hip, his performance in this encounter belies that.  Biden handled himself beautifully, in the hands of an obviously non-thinking and ill infomed questioner.  I think he was much kinder than was deserved.

This bubble-headed interviewer needs to get some research practice.  Both Parties just gave away all of the tax revenue the US Government hopes to derive from the next 3 or more generations with this so called economic bailout, and these are the best questions You can come up with?

Shame on WFTV.  In the interest of honesty with Your Viewers and professional due diligence, perhaps You should either forgo doing news, outsource it to a professional staff, or hire some talent.

For what it’s worth,

David C. Manchester
https://dredeyedick.wordpress.com

</rant>

My preliminary research suggests that WFTV‘s corporate parent, Cox Enterprises, is a good example of much that is wrong with the Fourth Estate today, in terms of media concentration of ownership, and a $1.5 million lobbying agenda.

Cox Enterprises 2008 Lobbist Expenses Reported at $1,500,000.00

Cox Enterprises 2008 Lobbist Expenses Reported at $1,500,000.00

If You would like to write to the owner of WFTV about this shameful and unprofessional episode, here is Alexa’s information about them:

Cox Holdings, Inc.

1400 Lake Hearn Dr. NE
Atlanta, GA
30319
US
Phone: 404 843 5327 404 269 1437
Fax: +1 404 572 1801
CoxTVsURL [at] cox.com

(Update I)

I am not alone in this assessment. -dcm


Sphere It!





U Can’t Hold No Groove – Victor Wooten

12 10 2008

If we reform the economy properly, then we’ll be able to actually Hold a Groove…  We’ll have pockets with something in them.

Thank You, Victor!

-dcm








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