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terça-feira, 6 de julho de 2021

Notes on the ongoing fascist drift

1.   There are several types of households. And, it is these nuclei that constitute the true monads of social life.

·        The vast majority is threatened by the police intrusion of tax agencies, always pressured by governments to implement a growing fiscal penalty, using and abusing the possibility of digging through various databases in search of increased income from those who live on the income of the work. But less so from the so-called entrepreneurs because “they are the ones who create the jobs”, in a logic that emanates from the most reactionary skulls. It is the fiscal penalty, which is conveniently comprehensive regarding the inflows/outflows of capital to offshores.

·        In general, the overwhelming majority of family nuclei are threatened by the pressure of capitalists in conditioning the income from work, through unpaid overtime, the precariousness of work that leads to precariousness in life, the rising age for retirement, in a plan that it means less time out of work and more extended time on the job, with discounts[1]. It is the pressure of capital with the subservient cooperation of the political class, mandated and obedient.

·        All are threatened by the financial system which, capturing the apparatus of the State and the political classes, favours unbridled consumerism paid on credit or, anchored in mortgages, capable of generating brutal losses in the event of default. It is about the pressure of the financial system, as a rule slavishly carried out by governments, also highly dependent on credit.

2. There is an osmotic, promiscuous and servile relationship between the political classes and the dominant strata of the capitalists (large industry, services and the financial system); and, a hierarchy that includes the so-called PME's[2], the champions of tax evasion, with the benevolence of governments, knowing that without this flight, low wages and job insecurity, many of these PME's would not be viable. It is one more form of state support towards social harmonization, smoothing the sharpest edges.

The drive of governments are, as a rule, emanations from the political classes, in the sense of conditioning and the growing capture of income from the population; is the same drive that focuses on the idiocy of the infinite growth of GDP. This, however, is not the greatest drama of our times. More relevant is the apathy of the multitude of workers and former workers; the anchyloses of their traditional institutions (unions); which allows the existence and fattening of capitalists and political classes, through the insertion of capital in Ponzi pyramids, from of the creation of money, out of nothing, without any relation to the so-called “real economy”. Tolerance that generates apathy, the disconnect between disadvantaged human groups and the victims of the action of political and economic structures, constitutes the main cause of Humanity's dramas nowadays.

3. For those who place climate change as their first priority, we say that without the dismantling of the capitalist logic, climate change will continue to be just collateral damage, from the dominant point of view, of capital accumulation and political classes, with ecological groups childishly to believe that they can catechize the political classes, in parliamentary action, in the sense of a (chimerical) imposition on common capitalists and the financial system. The practice of ecological groups in the last fifty years has been to osmosis themselves with liberal, social-democratic or Trotskyist-Stalinist groups, whose withering is visible; together, there is nothing structural about their practices, just the underlining of a “there is no alternative ”. Claiming against the effects without trying to suppress the causes is a gross methodological and political error.

Given the occurrence of an acceleration of these           changes, a dilemma arises:

·         humans are able to manage the planet in a logic of satisfying their needs, living beings and the planet's balance, which requires the abolition of the logic of capital accumulation that, by nature, focuses on endless growth;

·        or, the capitalists and their political officials proceed to a segmentation of the human herd between the useful members to the accumulation and the negligent ones, whose number must be reduced through diseases, reduction of the birth rate and of the longevity. A process that excites technologists and capitalists, with the replacement of human beings by robots.

4. However, the costs of capitalism's damages are transferred to the States, to be paid by an ever-increasing tax burden, which is particularly burdensome on labour income. The typical intra-capitalist competition requires the presence of increasingly lethal military forces, priority users of technologies with enormous power of confinement or destruction; and, with the promotion of nationalist and racist particularisms, old and excellent instruments for dividing the human herd.

The aforementioned apathy combines with the constant flood of media rubbish from television stations, the written press and digital platforms that, magnanimous, freely dump fantasies, lies and imbecilities at the disposal of all. This immense mass of data, under the name of information, serves for the construction and measurement of the state of mind of the large, inorganic masses of people, for the adoption of practices, ideologies, consumptions and social habits, leading to a collective alienation of the crowd that, in turn, ensures “the business must go on ”. In earlier times (in Europe) alienation stemmed from the narratives surrounding the figure of a vigilant named Jesus, imposed by temporal power and by the great mass of ecclesiastics. Can data used for manipulation purposes be called information?

Apathy incorporates, as genetics, the idea of ​​defending the homeland[3] and allows the daydreams with which the political classes finance military institutions; this incorporation can manifest itself in the trivialization of a culture of acceptance of violence and war, taken with natural elements for resolving differences, whether on the battlefield or in street demonstrations, in the silent violence of the workplace and residence. This apathy flattens, for example, domestic violence, taken as something with strong roots in society and, therefore, trivialized, as the subordination of women.

5. The nationalist idea fosters antagonisms between people who are not at all conflicting with each other, who do not even know each other, but only because they focus on different coloured cloths waving in the wind, if not on racist prejudices. Nationalism is a gift that is offered to the powerful and politicians of a country to legally and therefore, with impunity, demand resources and sacrifices from the population; putting immigrants in the background, in terms of rights and income, in a racist, exclusionary and cowardly attitude. Dividing and ruling is a practice with millennia of practice.

6.   The anchoring of family income and economic life in general is evident in the opaque activity of the financial system, whose databases allow for an almost nudity in people's everyday lives; the next abolition of physical money will be a giant step towards the lechery and control of each human being or by the financial system, in partnership with the “operationals” who show their face – the political classes. I partiti politici si dividono in grandi e piccoli. I grandi mentono e rubano. I piccolli desiderano sopprattutto di crescere (E. de Straznik).

7. The ideological defilement is permanent and overwhelming. In schools and universities, utilitarianism prevails, contempt for the social sciences, which have become instruments of social domestication or instruments of value generation, which, obviously, will essentially accumulate in the capitalists' patrimony. Is it by chance that economics taught at universities is essentially a technical discipline, with a lot of GDP, profit, supply, demand, competitiveness, value creation, entrepreneurship and the like? The interest of capitalists in introducing themselves into economic education aims to train agents of capital who, taking into account the cost of fees, privilege the offspring of capitalists, naturally nullifying this possibility among young people from the middle and lower classes of the population who, according to “modern” political regimes, they should be limited to their economic and social subordination. The time of the stairwell universities that honored figures of the Portuguese intelligentsia, such as Relvas, Passos, Sócrates or Vara, seems to have passed.

8.  The credit chains, involving States, families, companies, duly monitored by central banks and by the voluptuousness of stock exchanges, they are consistent with the infinite growth of GDP, as an inexhaustible source of enrichment for capitalists, with the intrusion and monitoring of the so-called “big date”. Conversely, the families, they are faced with huge debts for the use of a house, with high risks in terms of unemployment, increases in the tax burden and prices defined by oligopolies (fuels, banking services, transport, supermarkets, telecommunications). The tare of infinite GDP growth constitutes the usual engine of the diaphanous unreality that enriches the rich, on the one hand, and fosters huge pockets of poverty – absolute or relative among workers, pensioners, and the unemployed. Recently, the frightening and impoverishing contribution of COVID-19 has strongly increased the autocratic and repressive power of the state apparatus, to the precariousness of work, to the confinement required by telework and, consequently, to the fragility of the poorest people's lives.

  1. It is clear that companies and capitalists also contribute to fiscal punishment, but their relationship with the state apparatus is much more promiscuous and varied; there is tax evasion, subsidies, legislative support and, above all, a real possibility of raising prices, reducing costs, contracting debt and obtaining subsidies or tax deductions from the State.

At the top of the state apparatus are the various strains of the political class, much more equal than diversified; and, always complainants lack of financial resources by pressing the plebs towards increasing revenue tax and expenditure restraint public social character; hence, as a rule, increases in taxes and public debt.

The divorce between those who live on income from work and the State is evident; their interests are antagonistic or, if the capitalist state, is not an enormous abscess in the life of communities.

10.  The exclusions and dormancy in which most peoples of the world live facilitate the authoritarian and fascist impulses on the part of governments that, if necessary, will make use of heavily armed police officers and indoctrinated in canine obedience to … attack with water cannons, sticks, humanized dogs to attack people, if not rubber or real bullets that – always accidentally – injure or kill protesters; as it was frequent in the demonstrations of the French Gillets Jaunes.

The surveillance of each person's movements and opinions is potentially carried out through numerous channels - landline or mobile telephone network - the so-called “social” networks where imbecilities predominate but under the scrutiny of big data and the police, whenever If necessary, they can carry out specific queries to identify “dangerous” ideas. This happens while the courts are proving to be bottomless pits where cases of scams and corruption involving people of the political class and media entrepreneurs are in a state of dormancy.  Recently, fourteen members of the gang in government functions (PS) issued, with pomp and circumstance, a Portuguese Charter on Human Rights in the Digital Age that was identified as “belonging to the family of censorship”

The media, little differentiated, highly concentrated in the hands of financial or advertising groups, clearly practice an erasure of ideas that are unfriendly to power; and, to present a democratic facade, they promote one or another, allegedly left-wing, commentator.

11. The dominant representation model shows a substitute monarch to symbolize the homeland and which is called the President of the Republic, although there are cases in Europe in which folklore is carried out by a king. They are individuals at the end of their careers, walking in procession through the territory or, in presidential regimes, individuals duly trained in the management of the interests of the powerful.

Elections for parliaments usually fall to individuals belonging to institutions – the parties – which are divided into two large groups.

·          The most relevant group is those who manage the State apparatus, in an osmotic relationship with the capitalists, the financial system or, members of cavernous entities such as law firms, specialized in influence peddling; they will also benefit from permissive, dubious legislation, cumbersome and ineffective judicial systems;

·          The minority group is that of deputies who are the protagonists of the opposition and the media animation that aims to attract the (scarce) assistant people.

The two groups have in common their presentation as interpreters and caretakers of popular interests, even if they do not comply with the basic rule of representation — that the decision rests with the represented and not the representative.

12.  To finish, and taking advantage of the next electoral carnival, of a municipal character, we add some notes that intend to show what is a representation and a democratic decision : and, what is the totalitarian manoeuver that constitutes the DNA of the party sects:

·          The decisions on the collective needs are taken by its direct stakeholders (the population) in line with their elected and, not emanating from supporters directories;

·    The election is aimed at individuals, at the local/regional/national level, through their own initiative applications. Thus, there are no applications in the form of lists. The elected will have to harmonize, collectively, for the decision;

·          Limitation of the number of mandates (maximum of two or three). The exercise of political functions, of representation, is not a way of life but a duty of citizenship. It is intended to avoid the encystment of political classes;

·          Possibility of termination by referendum, of mandates on the initiative of voters, of the same geographical framework in which the election was carried out;

·          Opening and facilitating referendums by decision of the political structures or of the population inserted in the same geographical framework;

·          Total absence of perks and immunities for all those who hold positions representing the population; and, an aggravated criminal framework without prescription, for cases of corruption;

·         The staff of the Public administration and the judiciary are technical structures, independent of the various levels of government action;

·      The government consists of the elected representatives for RA and , as such , may be dismissed, of these functions under parliamentary decision or have the mandate as a deputy impeached, by popular referendum.

·       Free and easy access to all files and decisions of public bodies

·   Judgement of corrupt and mismanagement acts that have taken place in the last 25 years

 This and other documents, here:

http://grazia-tanta.blogspot.com/  

http://www.slideshare.net/durgarrai/documents

https://pt.scribd.com/uploads                                


[1] In Portugal, this innovation was carried out by two PS entities; such Vieira da Silva, a former minister who retired and Pedro Marques, his subordinate and executor of this innovation about fifteen years ago, currently to accumulate political weight in the European Parliament.

[2] The concepts of nationality and patriotism emerged with capitalism , when the bourgeoisie found it useful to define a territory and a population as their own, excluding all those who were outside the borders, subject to very tight control. In the U E , the creation of a global market suffered a setback with the use of covid-19 to confine and impoverish populations and make even more precarious employment and access to regular income, even if meager.

Still on patriotism, note the competitive and excluding commitment of international football championships. Perhaps one day the mobs' winning eagerness will slide into the demand for a degree of violence like the one well portrayed in the movie Rollerball (2002).

 



[1] In Portugal, this innovation was carried out by two PS entities; such Vieira da Silva, a former minister who retired and Pedro Marques, his subordinate and executor of this innovation about fifteen years ago, currently to accumulate political weight in the European Parliament.

[2] PME – Pequenas e Médias Empresas (Small and Median Compamies)

[3] The concepts of nationality and patriotism emerged with capitalism , when the bourgeoisie found it useful to define a territory and a population as their own, excluding all those who were outside the borders, subject to very tight control. In the U E , the creation of a global market suffered a setback with the use of covid-19 to confine and impoverish populations and make even more precarious employment and access to regular income, even if meager.

 

terça-feira, 1 de dezembro de 2020

The financial system, the first global dictator - 2

 Summary

4 - Total credit directed to households and non-profit companies serving households (% of GDP)

5 - Total credit directed to non-financial companies (% of GDP)

6 - Structures and dynamics in the distribution of credit / indebtedness

 

 

******* // \\ *******                        

 

In the first part of this analysis, the total credit directed to the non-financial sector is accompanied by an approach on one of its installments, the public sector. In this second part, we will consider two other parts of this non-financial sector - households (including non-profit entities) and non-financial companies. Also and, as before, taking into account that all quantities are measured in terms of the percentage of GDP for each year.

Below is a schematic of the framework for the various sectors of economic activity with the data released by the Bank of International Settlements (BIS)

Total - non-financial sector

 


    Public sector

Families and businesses are in profit

      Companies

 








Non-financial private    



 

In today's capitalism, it is necessary to promote increased availability of capital, since economic activity never generates sufficient income to satisfy the accumulation felt as necessary; hence the drive for economic growth that did not exist before Keynes. In this context, the aim is to increase the "invested" capital, without quantitative limitations, speculating, obtaining favors from the State, obtaining credit from the financial market (banks, stock exchange, speculation) or, making war if necessary.

On the other hand, some pressure is placed on those who live on income from consumption, largely of useless or harmful goods or services, despite the precariousness of that income. And, the satisfaction of this pressure requires the use of credit, especially in the very long term, with the financial system.

Public management itself does not escape this drive, as each gang in power needs to maintain order and obedience, domesticating police, military and, civil servants; how it needs to showcase its work to win the next elections and please the businessmen who finance the corruption of governments and political classes in general.

The way out of this common dilemma is recourse to indebtedness, something that has become obsessive and whose solution is presented by the thin capital that stands apart from the so-called "real" economy; and this, the traditional capitalists, producers of non - financial goods and services, the state apparatus, in charge of the convenient redistribution of fiscal puncture; and yet, the ordinary people, the families, the helots, whose gentleness is essential for the continuation of the capitalist system and the regimes of market "democracy", with variable degrees of brutality. 

 

4 - Total credit directed to households and non-profit companies serving households (% of GDP)

There, in the first chart below inserted various types of credit evolution of granted or, if you prefer, the level of household debt in the last 25 years, for the chosen countries.

It is quite clear that there are two periods. The first, which ends around 2009, of a large expansion of the weight of household debt in GDP; and the second, until the present moment, in which the weight of indebtedness has stabilized.

For all euro countries as a whole, these credits grew until 2009, then retreated to the present day, clearly abandoning the high upward trend seen until the mid-decade crisis. In Britain and the Iberian countries, the household debt is very sharp, with strong growth to the discharge of the financial crisis declining thereafter, except Great Britain that keeps stable the debt burden of households in past few years.

Portugal, Spain and, Greece have large growth loans to households, and that doubles, substantially in about ten years, with Greece, a lower level; euphoria in the Iberian countries peaked in 2009, decreasing until now to weight values ​​in GDP close to those recorded twenty years before. In the case of Greece, the peak is reached in 2013 but the drop is not as sudden as in Portugal or Spain. Thus, excluding Great Britain, there is an approximation of the degree of family indebtedness in the latter, among euro countries, for indicators close to the set.

France shows a great regularity in the growth of household indebtedness and Italy shows the lowest levels of family indebtedness, compared to GDP and, n a stable plan around 40% of GDP, since 2008.

Germany shows a clear dissimilarity compared to the other countries considered. The weight of German family debts - the highest at the turn of the century - evolves until reaching the lowest coefficient, among the countries considered, with the except for Italy; a very regular evolution, with a decreasing tendency. 

 


Synthetically, there is a clear reduction, over time, of the differences between the degree of household indebtedness to the euro countries, if Italy is excluded.

When approaching the situation for large aggregates of countries - eurozone and G20, on the one hand, and the two world colossuses - China and the USA, on the other - there is a great similarity (see graph below) between the two first aggregates, with indicators close to 60% of GDP since 2006.

As for the USA, family indebtedness had a dimension equivalent to the value of GDP in the period 2007/2009, at the height of the financial crisis known as that of subprimes. What was verified in the period reflects in negative, the debt assumption of euphoria by families with limited resources but tricked into debt increases, taking into consideration the high valuation of their homes. As the real estate lost value, unlike the debt, the execution of the mortgages led millions of people without health coverage (at the time of the enormous neglect of Trump as a political pandemic manager) and homeless, sleeping on the streets and under bridges. American Dream seems to be renaming itself American Nightmare, in the face of Xi's smile that will be convinced of the possibility of capitalism without a hangover, protected by a new Great Wall; however, this did not prevent the Mongols from entering, let alone looting and violence carried out by barbarians (designation officially given to Europeans).

As for China, the weight in GDP of household indebtedness has sixfold in fourteen years (2006-2020), which is something extraordinary. Although it is a country with 1300 M people (two and a half times the population of the EU), it is worth asking whether a capitalist economy can maintain this rise even within the framework of tentative and intractable political power; or, if the country's export power, even if it depends on energy and investments a little bit by all parties, can be maintained; what changes will arise from economic co-optation in the Western Pacific area (among other areas of penetration), with the Regional Comprehensive Economic Partnership. The United States' strategic retreat in the creation of the Trans-Pacific Partnership that aimed, precisely, to leave China out, should be considered a gift to China. In return, the US has strengthened its military potential in Taiwan…


5 - Total credit directed to non-financial companies (% of GDP)

It is considered here as loans to non-financial companies, those coming from bank financing, partners or private loans, operations the stock exchange or, to public entities. As can be seen in the following graph, there are varying degrees of indebtedness taking GDP as a dynamic element of comparison.

France shows steady growth in corporate indebtedness and, always at a very high level, which reaches 155% of GDP in March of the current year; and, without a hitch in the face of the financial crisis. A regularity that, being verified with high levels of credit dependence, did not change in the trajectory during the period of financial turbulence centered in the middle of the last decade.

The Iberian countries show a huge increase in indebtedness compared to the amount of GDP, until the period when the crisis in their financial sectors is revealed, along with the deterioration of public accounts, unemployment and, the fall in activity levels. However, there is a two-year gap between the two countries concerning the turning point (Spain 2010 and Portugal, 2012). The enormous growth in indebtedness did not lead to a reinforcement of the productive capacity, nor of the purchasing power of the population, but, increment or public and private debt, as well as unemployment levels.

The enormous growth in debt resulted in a loss of purchasing power for the population and not in improvements in the quality of life. In this context, the responsibilities of the political classes are immense and it is surprisingly their disastrous performance has not led to a renewal of it, with deep changes in the model of representation. In Spain, the crisis - financial, unemployment and, evictions - generated a popular movement ( 15 M ) in 2011 as well as a change in political chess, with the emergence of Ciudadanos, Vox and, Podemos let us add that the renewed movement for the separation of Catalonia or the discredit of the monarchy were elements that formally changed the political structure but not, its oligarchic and corrupt substance. In Portugal, the traditional pentapartito, continued with more or less “lonely tenors” in the Republic Assembly as well as the debt crisis or bank fraud , with deviant political provocations such as “ Que Se Lixe a Troika”[1] or “ Geração à Rasca”[2], created to avoid any durable and effective contestation that would threaten the functionalism of the parliamentary “ left ”.

In Spain, indebtedness, in terms of GDP, almost triples in a short period of twelve years (1998/2010) while GDP itself only doubles; on the other hand, between 2010/2016 the fall in indebtedness corresponds to a period of GDP stagnation. In Portugal, indebtedness doubles compared to GDP in a slightly more extended period, of fourteen years, while the product itself stagnated in 2007/2015.

Italy and Greece correspond to the same profile mentioned above for Spain and Portugal but with much lower peaks and spaced over time, with structurally lower levels of indebtedness. For their part, Germany and Great Britain boast great regularity and much lower debt weights for non-financial companies than in France, Spain or, Portugal. 

 

Regarding the large aggregates of countries and for the two largest powers, the USA constitutes the aggregate where the indebtedness of non-financial companies is lowest, even if with a slow rise, it reaches 78% of GDP last March.

In a general context of growth in the use of credit by non-financial companies, the regularity observed for the G20 and the Eurozone should be highlighted. There is a clear contrast with China, for which there is a strong upward trend until 2015, passing through the breaks of 2007/08 and 2009/11; in recent years, however, the use of credit by Chinese non-financial companies appears to be in restraint.


 

6 - Structures and dynamics in the distribution of credit/indebtedness

 

At this point, we intend to show, in summary, the changes regarding the main of the three major areas of credit recipients; and the duration of that top position. , for each country. At the same time, we show the average distribution of credit granted for each of the economic and social segments, also for each of the countries considered and, for all (or part) of the period to which the data refer.  

 

 

Main destinations for credit to non-financial institutions

Average distribution of credit by institutional sectors (%)

Families

State

Companies

Families

State

Companies

Germany

1998/2004

2005 ->

 

3 2.4

3 7.3

30.3

Spain

 

1995/1999

2000/2014

26.3

32.4

41.2

 

2015 ->

France

 

 

1998 ->

18.8

33.4

48.0

Italy

 

1999 ->

 

15.5

54.0

30.5

Greece

 

1999 ->

 

18.2

58.7

23.7

Portugal

 

2014 ->

1998/2013

27.2

34.0

38.8

Z. Euro

 

1999 and 2014

2000/2013

24.2

35.6

40.1

China

 

 

2006 ->

1 6.1

19.0

64.8

USA

1996/2010

1995/96

 

3 6.0

34.3

29.7

2011 ->

 

 

From the table above, are extracted the following notes related to recipients of credit or, assumed debt :

·                     Germany shows that this situation fell on families until the first decade of this century, being replaced by the State at the beginning of the century following the Hartz reforms. The German state in 2002 had a corresponding debt at 61.8% of GDP that reached to 70.2% in 2005, never retreating to levels seen around the turn of the century;

In the case of the USA, families absorbed the largest share of indebtedness until the subprime crisis put the State as the main debtor as of 2011. In 2007, the US State had a debt corresponding to 60.7% of GDP, an amount that increases regularly to 102.4% in 2012 and 111.1% in March. By contrast, household debt corresponding to 98.5% of GDP in 2007, has been declining, since up to 75.2% in March last;

 

·                     France and China have always revealed that business data is the main sector with debt levels compared to other groups socio-economic, families. and, States. Among the countries considered here, they are the ones where the weight of companies is highest, in total debt.

In China, the preponderance of credit obtained by companies reveals the country's industrial and commercial strength, especially in the area of ​​exports; and that, contrary to typical state capitalism, economic activity develops with autonomy but obviously under the control state and the party. Note also the low share of indebtedness related to families, much lower than the so-called western countries.

 

·                  Spain  and Portugal, as well as the whole of the Eurozone, have, roughly, as a standard for the whole period, a predominance of the debt generated by the companies ... but from the beginning of the century until 2013/14, when the situation alter or; from then on, and in response to the financial crisis and real estate, is the state that presents itself as the principal debtor, as the great stabilizer, following the chela crisis that generated income drop, unemployment, reduced purchasing power and, strong growth public debt.

 

·                     In Greece and Italy, throughout the period, the state is the principal debtor, with indicators well above the sum of two other socio-economic groups.

  This and other texts in:

 

http://grazia-tanta.blogspot.com/


http://www.slideshare.net/durgarrai/documents

https://en.scribd.com/uploads
 



[1] “Fuck Troika!” 

[2] “A Generation in troubles, menaced”