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quarta-feira, 10 de fevereiro de 2021

Why is there no anti-capitalist strategy?

 Summary

1 - The end of History or the eternal return?

2 - The market's victory was based on barbarism

      3 - The common objective between political and capitalist classes

4 - About the so-called socialism

5 - For a strategy of survival and change

 ((((((((((o))))))))))

1 - The end of history or the eternal return?

The gang`s supporters generally conservative and reactionary, even when adopting m formally interesting acronyms and purposes for the common people are, as a rule, prepared to supplant competition and much less to meet the aspirations of the people, the electorate. The names they bear, coming from distant times, lose all their ideological and programmatic meaning, due to the funneling promoted by neoliberalism, so well defined by Baroness Thatcher - There is No Alternative - or, by Fukuyama - “The End of History and the Last Man ”. It is clear that in both cases was the conclusion that capitalism would be a return to paradise, though the collateral damage, such as wars and pandemics, have never abandoned the land and humanity.

As for wars, the Balkans were the scene where the “democrat” Clinton exercised his muscle, taking advantage of Russia's weakness, creating micro-states, properly armed with American weapons, in the ruins of the Slavic yoke; with the latter, divided into seven nation-states, with the integration of some, in EU and NATO; with the only two of the majority catholic population, benefiting from the papal blessing. The humiliation of Mogadishio in 1993 and the bloody attacks on the embassies of Nairobi and Dar-es-Salam in 1998, were on Clinton's face; they could only be fait-divers, but they were not.

History, after all, went on.

Following September 11th, Bush moves to Afghanistan, and, the desired transformer results culminated without glory, with the almost total withdrawal, sponsored by Trump, twenty years later; in that period, Chinese, Pakistani and Indian investments began in that country; but with the poppy business in American hands. The incorporation of Portuguese mercenaries, and the presence of two well-known elements, improperly in uniform, is a demonstration of the transformation of the western invasion into clowning.

                                                                            Portuguese president of the Republic and the

Minister of Defense

Two years later (2003) it occurs the invasion and destruction of Iraq with a focus on the capture of Saddam and the segmentation of the country between Kurdish, Shiite and, Sunni zones or entities; an action that will leave in history the quality of the promoters of the operation - Bush, Blair and Aznar, with Durão serving the tea, in the Azores. Western intervention in Libya followed in 2011, with the high patronage of Obama, holder of the Nobel Peace Prize two years earlier; and the division of oil between invading partners. They looked indifferently to Gaddafi's murder, after being sodomized by the soldiery; showing one more exemple of Western civilization.

In this impetus, the “Arab springs” were framed within the scope of which Mubarak was deposed, replaced by Morsi, linked to the Muslim Brotherhood that won the elections in Egypt, and, immediately, imprisoned and replaced by an undamaged democrat, General al-Sisi, ready to do anything to receive the support of the sultans and the zionist entity.

That plan included the overthrow of the Syrian regime, to prevent the formation of a Shiite axis, from Iran to the Mediterranean; and, to this purpose, financial support for ISIS was channeled by the sultans of the region, partially applied in the purchase of war material to the North American weapons emporiums. The consequences are well known - fragmentation of Iraq, the continuation of the war in northern Syria and, - not all is bad - the creation in Rojava of a project of direct democracy; all this, causing a huge flow of refugees towards Europe.

And, to finish this point, we remember the collapse of the Libyan state facilitating the disintegration and the war in the Sahel countries that surely (?) the western support would...avoid.

Internet and information technologies, being politically neutral, are integrated into any practice, such as ancient abacuses. Of course, they accelerate the pace of transactions and practice knavery, despite the preachings of angelic environmentalists who intend they can convince capitalists to regard the environmental balance and the quality of life on the planet. The ancient Christian devotees were followed by people loving God as St. Shenufe, Popes Borgia, and, much later, Pope Wojtyla; without forgetting the "ecologist " Joschka Fischer, an accomplice in the bombing of Serbia, of course, while eating tofu.

After all, history is going on. The usual and age-old sequence of plunder, war, inequality, oligarchy, migration and poverty prevails, generated by minorities of the rich, bankers, speculators, their believers and, mercenaries, in addition to the various and unlikely strains that form the political classes; at the moment, clumsy managers of the effects of the pandemic. And, stupid enough to think it is despicable to help the ancient colonized peoples in fighting the virus that… long ago discovered that the Earth is round.

2 - The market's victory was based on barbarism

Swarm around, very different acronyms, formally, for parties - socialists, social democrats, liberals, democrats, laborists, conservatives, christian democrats, anti-capitalists, communists, ecologists, greens, radicals, republicans[1]...though many of them just being crooks, corrupts and, liars. The number of party acronyms that circulate there will tend to rival the number of... coronavirus, on the loose.

In the Western world, the invention of the market economy was shown as the zenith of the human happiness; and, from there, the benefactors who come to apply it, within the framework of colonialism and non-colonialism; and, using the Keynesian model, like the neoliberal coprology.

·            In the field of politics, we have to consider a creative process including military interventions, coups d'état, wars, invasions, kleptocratic oligarch regimes and, in more recent times, personal sanctions, popularized ad nauseam by the pachyderm Pompeo… the gods keep him out of the spotlight! In a more polished form, the products resulting from elections, they are, Dupont, or Dupond, calling these revolving doors, democratic change or market democracy. For a more prosaic image, if prefered, look at differences in coffee sweetened with white sugar or brown sugar.

 

·            The oligarchic model applied to the economy goes by the name of a market economy. It was born from colonial plundering, slave labor, piracy (sometimes with a legal letter of marque), the proletarianization of peasants, who emigrated to the cities. its beneficiaries are called capitalists, sweetened name, later, for businessmen. In turn, work started to be carried out by people in precarious, fixed-term, "independent", subcontracted, experience, trainee roles, extending to the urban scene as something equivalent to working for the day, for the functions performed in the field. And who lives in an alternating regime, between unemployment and the work of shit, in the designation of the early deceased, David Graeber.

 

3 - The common objectives between political and capitalist classes

Politically, the political classes and the capitalists have a common goal; the use of the proceeds of the fiscal plunder and the domestication of the common people… to assure the GDP grows; and, that the companies invest, the external capital is installed...so that the GDP grows. As in all countries[2], that objective is present, it is necessary to create “competitive” taxation and labor prices, which must be also competitive… for GDP to grow. This litany is not very diversified but, monotonous and that ends up fixing itself on the conscious and unconscious of the mainatos (servants, in the former Portuguese African colonies).

The main parties are the managers of the product of the tax withdrawal and the guarantors of the gentleness at work; the rest of the groups are the bridesmaids who frame the procession and give it a false democratic appearance.

I partiti politici si dividono in grandi e piccoli.

I grandi mentono and rubano. I piccoli desiderano soprattutto di crescere[1] . - Emmanuel de Straznik

Within each party, hierarchies develop, fractions are in permanent struggle with each other, with groups in constitution and others, in loss of influence, within which the interests of the social groups they seek to represent, lose relevance. It is important, above all, the internal power and the ability to capture funds abroad, with all the importance to the establishment of close and lasting relationships with entrepreneurs. Political programs are repositories of phrases as hollow as consensual that cannot provoke dissent and that broaden the scope. This practice is what Robert Michels called, more than a hundred years ago, the iron law of parties; since it is its fulfillment that ensures the perpetuity of the institution. The inspiring institution was the German SPD.

Political parties do not act out based on love for their neighbors, but to keep under pressure the earnings and rights of employees, unemployed and pensioners, with a justification of deficit, debt, circumstances, obligations coming from Brussels, floods, fires, etc; on the other hand, of course, they proceed discreetly, to self-supply. No GDP growth is free to contain restraint for the earnings of workers and former workers; and, if the GDP stagnates or shrinks, it is already known who will be sacrificed. The people say that "whoever leaves and shares is a fool if he does not keep the best part".

“There are no laws against corruption because who writes the laws are the corrupts”

In the patronage hierarchy, the highest strains articulate with the parties in power to share the fiscal pie; for legislative production likely to favor capital accumulation; for the creation of a media environment that promotes sacrifice, so that the “country” does not sink; and, for the generation of the media and social environment that compels employees to accept greater tax burden and cheaper labor. The State is the mediator of redistribution, the sieve that separates and harvests gold nuggets, letting the sand flow into the stream and settle at the bottom of the river.

4 - About the so-called socialism

For more than 10 years when we began to write and act against "this" - the political and economic system in Portugal (not only…) we, synthetically, designed by post-fascist regime - there were words that we refused to include in our speech to do not feed the reigning atavistic conservatism. One of those words, with a vast and diversified contents, is the term socialism as defining a salvific reality, for the present days.

Socialism was thought as a liberating formula against capitalism that we know quite well and, whose existence weighs heavily on the shoulders of the overwhelming majority of human beings.

Socialism, was claimed as unavoidable, mythical and salvific in defense of which, millions of generous individuals were sacrificed to come to suffer, undergoing, on the skin, the effects of a practice that led to the supremacy of a very well known disaster - capitalism. What is more, these disasters contributed greatly to keeping capitalism out of the dump of history.

In 1917, the Soviet Revolution called for a Copernician shift to economic, political, social life, to free women, oppressed peoples and nations; and that Maiakovsky would refer in a poem, with a pride felt in the presentation, abroad, of his red passport.

However, the elevation to power, in the name of socialism, of groups of unscrupulous and heavy-handed bureaucrats; secular priests who defend a unique thought; their supreme and indisputable leaders, had a first notable moment in Berlin, on 15/01/1919 when Rosa Luxemburg, Karl Liebknecht and thousands of workers were murdered by the "Social Democrats" (the current SPD), and its leader, Ebert, having as executive arm, a vengeful troop, felt as badly defeated at the war of 1914/18. From this massacre, a few years later, greater bestialities, greater misfortunes, carried out by Hitler, came to bear - in the name of his National-Socialism, as racist, murderer and, concentrationary.

However, in 1920, the Ukrainian militiamen of Makhno, contrary to the statist and hierarchical principles followed by Lenin, after having jointly fought the remains of the tsarist army, were victims of bloody persecution led by Trotsky - the usual performer of dirty work - more or less commissioned by Lenin. A work that Stalin continued in the thirties, causing the death of millions of poor Ukrainian peasants.

In 1921, was also in the name of socialism that Trotsky, backed by Lenin and Stalin, promoted the Kronstadt massacre, murdering thousands of those who had, a time before, played the October Revolution; the authoritarian ride, accelerates the creation of a totalitarian state, persecutions, murderers, in favor of a caste of bureaucrats, mindless executors of particularly severe laws.

After Lenin's death, the power was transferred to Stalin who eliminated the competition of the occasion and, of other later, real or fictitious, for some thirty years, continuing the name of socialism to the political and economic model, which entered the sadly celebrated, Gulag.

With the end of the regime, in 1991, the references to socialism in Russia disappeared; as in China, it happened gradually shortly after Mao's death, in 1976. Note that, in the latter case, the “socialist” reality was transfigured to such an extent by the regime that, in the 1970s, intellectuals of the class of Charles Bettelheim or Joan Robinson, a Labor economist, were completely deceived by what had been given to them, shown in China; Where, curiously, power remains monopolized by the CCP, even if concomitant with a clearly capitalist economic model.

“If you get the most fiery revolutionary and give him the absolut power, one year later he will be worse than the tsar”

These failures and opportunistic back-faces, drive to a current domination of more extremed reacionarism, corresponding to the increased aggressiveness of dominant capitalism, and its financial arrangements. On the other hand, they ideologically disarmed the traditional lefts and the unions, incapable of an alternative discourse and, putting into practice a constant and reactionary retreat, of ideological disarmament, in a logic of going behind, a word that, in English, has a very expressive and eloquent, word - tailism, go on the tail.

The reconciliation of reactionary policies with left-wing labels led to the defeat of Syriza, in Greece, in 2015, in a context with the capitulation of the “left”; and the gradual retreat of the electoral weight of Podemos, crouched around an Iglésias, devoted believer in Laclau's populism. The stagnant electoral Portuguese left stands, with the presentation, ultimously, the same number of votes than in the seventies, even though the population enrolled to vote has increased 3 million in the same period; and that, outlined, obedient, to march according to the conviniences of “sergeant” Costa (Portuguese primer), in everything that is essential for him.

These false lefts venerate the State, they do not attack its power, even if it is showing, evidently, its role of helper of financial power, of multinationals and, the main den of corruption. Thus, the national party spectacles, as a rule, present two parties or, two alliances of parties, very similar, in terms of political practices, with a routine turnover, with the choice to come out of an artificial electoral crunch, generated by the eagerness to access the “Bowl"; in this context, all falsehoods, all unrealizable promises are worthwhile, to obtain the preferences of the commoners; and to people do not feel at the time of election, the alternation will be observed in the differences between the twins Thomson and Thompson.

Donde está la izquierda?

Al fondo, a la derecha[3]

 5 - Strategy for survival and change

There is a dichotomous question of a methodological nature:

a) Is capitalism an evil, such as drought, climate change, covid-19, poverty, inequality, deforestation, patriarchy and many others? Is it an element that disputes, with the evils mentioned above, the championship of the problems that plague Humanity, the environment and the planet?     

or,

b) We deal with a structural element that produces or strongly influences those evils, showing itself innocent only facing the effects of sunspots or a volcanic eruption?     

Traditional ecologism and political parties in general, they accept capitalism as a given, a constant, like the day/night cycle, even if capitalism is the architect of the powerful and versatile global economic structures, invisible and criminal, that frame our lives; even if this acceptance is anti-historical, taken as a divine command for which we have strictly to accept, pray and pick up the pieces of the destruction.

In its poverty on policy and ideas, in the broth bland called eco-socialism, is it expected an outbreak of ethics that promotes the conversion of capitalists as benefactors of the planet and of humanity...like the famous Gates? And do they wait the regenerator effects of one more petition, delivered to the government? Do you have some hope after few moments of conversation with a mandarin? Over the centuries it has been expected something of the promised by dozens of evangelists and prophets but...where are the results? And do you hope, with Job's patience, that one day the political classes will find the will, the capacity and the autonomy to put capitalism in order, thus restoring a new, green Eden?

Pedro Pedreiro, penseiro, esperando o trem (Pedro, mason, thinker, waiting for the train[4] …

Aqueles que esperam o que nunca chega  (those who wait what never reach) [5]

However, cautiously, these formations, in general, lean against the state budget to follow a comfortable life. Fluffy bed and hot plate at the right time, always go well…

We think that the first hypothesis reveals innocence, reactionary or, ignorance and benevolence, treating the main evil - capitalism - as just a competitor of the other evils that affect Humanity and the planet; removing causal links. In practice, it is a question of capitalism not being held accountable or lessened, of devaluation of the damages in force, trusting that the political classes, as capitalist managers, reconstitute this Eden. And that, even before the overall precariousness of work, the regular appearance of epidemics, the existence of armies and police to defend the apartheid of the political classes against the multitude that are deemed less meek and complicit with those; and who accept increased working hours, endemic unemployment, living in pestilent cities but, with the divine right to circulate on four wheels, polluting; while an eternal debt to the banks is maintained, to guarantee a ceiling, which can disappear, at any moment, in the face of a trivial unemployment crisis.

The role of the financial system in the global economy, or in national and domestic economies is the major determinant in the lives of people, companies and countries; but many people have an incomplete view about that and, perhaps benevolent, because access to credit only rarely is denied; for more, being so "attractive" given the effective interest rates very low , also linked to low inflation rates.

 

This and other texts in:

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

 http://www.slideshare.net/durgarrai/documents                               
https://pt.scribd.com/uploads


[1] In Pela, Macedonia, at the time of Philip, father of Alexander, the political nomenclature was simpler - blues and greens

[2] https://grazia-tanta.blogspot.com/2020/03/o-salariado-na-europa-1_10.html

https://grazia-tanta.blogspot.com/2020/08/the-evolution-of-wealth-in-europe-200019_6.html?m=1

https://grazia-tanta.blogspot.com/2020/06/salarios-e-impostos-sua-evolucao-no.html

[3] Puerta del Sol, Madrid demonstration of  Indignados , 2011 “Where is the Left? In  the background, on the right side”

[4] Chico Buarque de Holanda, Brasilian writer and singer

[5] “Pequena Memória Pra Um Tempo Sem Memória” (Little Memory For A Time Without Memory) (Gonzaguinha and Luiz Gonzaga)

 [1] Political parties are divided into large and small. The great ones lie and steal. The little ones especially want to grow up

sábado, 3 de outubro de 2020

The post-Covid world that will arrive… one day


 Summary:

1 - Human beings, instruments of capital

2- The infinite accumulation of capital

3 - Surplus of people

 

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1 - Human beings, instruments of capital

Among the multiple effects of the pandemic, some - non-sanitary ones - can be highlighted, such as greater difficulty in utilization, by the large emporiums, regarding the scrutiny, classification, manipulation of personal data, for purposes of their segmentation or homogenization, with the norms to be followed and the accompanying surveillance, diluting individual capacities in an alienating and useless work, articulated with a leisure time filled with mind-boggling activities.

These useless activities serve only to convince its practitioner to remain integrated at the circus of capital, however useless their "work" could be from an economic, social or, cultural enrichment point of view. Work, being an effort, only fits if it produces something socially necessary or useful; however, in many cases, the performer's entire life is crossed without him ever realizing the uselessness or damage that resulted from the application of his time and his physical and soul capacities. This distortion in the lives of human beings has become typical of capitalism and, due to its dimension, leads to damages of an animistic, environmental and sanitary nature that affect large human groups or even humanity; as is the case with military cannon.

In the past, in the dominant classes, especially in the nobility, their main activities were leisure and war, with the delivery of heritage management, the collection of taxes and tributes, to someone qualified for the purpose - an ecclesiastical or a commoner. In the other population strata, in the countryside or the embryonic cities, there was no place for useless tasks, seen as work; everyone knew the purpose and real usefulness of their work effort, even if it was leisure or the satisfaction of a gentleman's whim. It was a question of guaranteeing subsistence and measuring labor effort according to the needs of the family group and the payment of the tribute to the local master - in kind, young people for war or domestic service in the castle or palace.

In times of epidemic, bad harvests or, devastation by the war - there is no ... unemployment benefits or tasks defined by the public authorities to make up for the lack of income, as in the New Deal, the only emigration remained, or the search for occupation in the cities, where productive activity was much more diverse than in the countryside.

Mobility after the European expansion of the sixteenth century was extended to the global space, greed, spirit of adventure, war or through the trade of spices, slaves, weapons .. . This mobility involved areas where complex and even more advanced societies lived than European ones, but which gave in to European colonization. Where this did not happen, as in North America and the Caribbean, the rule was the extermination of its inhabitants and the massive recourse to slavery ... covered by the divine figures of the Christian pantheon and its priests.

Capitalism, generating the incessant demand for capital accumulation and benefiting from technologies that generate high productivity gains, could reduce the time dedicated to working, freeing Humanity from labor effort and giving it free time for its use in the delight of culture, sport, sociability ...

But it did not and will continue not to. It benefits from the essentials of productivity gains, builds huge bureaucracies and instruments for the control of labor and its workers so that the labor force remains pacified and captured by the logic of capitalism, accepting its subordination to the stars as written in the stars. capitalists.

An entire ideology based on the segmentation of labor income between workers and employers is developed; and these, even though they are very minority, benefit from the majority of gains. Capital leaders say that it is essential to have capitalists because they are the ones who create jobs, pay wages ... thus showing the secondary character, the accessory of workers. In the capitalists' bible, God created the capitalist and, as a result, created the wage earner to ensure the welfare and entertainment of the former.

2- The infinite accumulation of capital

Capitalism conceives no limits for accumulation and invents ways to increase it to infinity, to consolidate its perpetuity and perpetuate its power over the population and the resources of the planet. On the one hand, in terms of the production of goods and services, it seeks to maximize its supply to increase profits; and, on the other hand, in total contradiction, it seeks to maintain restraint in income from work knowing that restricted purchasing power means less consumption, less spending. And, that is why people point to the unreasonable recourse to debt to feed consumerism in all social strata, after the capacity to use labor income has dried up. How do you get out of this?

Of course, this is not enough. This results in dementia inherent in the financial system, which, as a central element in the multiplication of capital, is always overcome by a drive, gluttony that is never satisfied, with the increase and appreciation of the securities it issues; nor with the profit margins it obtains from the transactions it carries out, at all times. Hence the financial crises, the military conflicts and the "investment" in armaments, with the leadership of the managers of the big central banks, of global institutions such as the IMF or the BIS - Bank of International Settlements, which follows the situation of the global financial system; as well as national and political classes that are responsible for managing the impacts of financial folly governments, and turn them in social and economic crisis, with increasing sharpness and increasingly frequent, as can be seen by comparing the Wall crisis Street in 2008 with the one that develops in the coronavirus ride.

Financialization, with the creation of money exponentially, in a virtual way, inserted in networks of data circulation, generated in instantaneously way and linked together, is, at all times, speculative business networks. The material basis of the economy, based on the production of goods and services or domestic self-production and self-consumption, has lost relevance and has become an appendix, a by-product of the market, duly supervised by the state apparatus.

3 - Surplus of people[1]

There is a time of great uncertainty in the face of the virus and fear in the face of the assault on the income of the popular classes. Among the effects of the pandemic, some can be highlighted, such as greater difficulty in using, by the large emporiums, the scrutiny, the framing, the manipulation of personal data, for their segmentation or homogenization; also, with the establishment of standards to be complied with and adequate surveillance, diluting individual capacities in an alienating and useless work; or, with leisure time filled with mind-boggling activities. With these useless activities - not felt as such by the worker - it is intended to give him a false idea about the importance of his work. It is an alienating and pacifying practice - typical of capitalism.

In the pre-capitalist modes of production, labor functions could be painful, but their purposes were known; no one performed functions without knowing the objective, even if it was the satisfaction of a whim from his master. In capitalism, technologies would allow sharp reductions in working time, without loss of income, if all the functions to be performed were recognized as socially useful. This would mean increased leisure time, for study, culture or sport and this would result in the great political question - if the means allow the production of all goods and services useful to Humanity, it is necessary to abolish those who condemn the crowd to journeys of long, painful and low-income jobs. As well as all socially useless or harmful activities.

For the way the crowd - in times of covid-19 - allows for massive unemployment, the layoff, the extended resource to charity, the limitations in the circulation in the physical space, the loss of hours of life with the eyes glazed on the new screen, a very nebulous and not very promising future, it appears that the articulation between the capitalists and the political classes dominates the situation.

In Portugal, what followed the financial debacle caused by the PS-PSD party-state, before and during the troika's intervention (2011-2015); and, the pacification by the "left" of the sparse contestation then took place, still shows its effects. The Portuguese political class, as in other countries, did not solve any problems of those existing at that time and added the effects attributed to the covid-19.

The occupation of the State by political parties that place all the responsibilities for the economic and social management of society on their members and are attached, remits the population to the situation of meek and soft objects, of subordinates subordinated to the interests of the political class. The virus crisis, which has a duration far beyond what was initially foreseen, reveals, in a first instance, the immense inability of management by the political classes - with emphasis on Western Europe, USA and, Brazil - contrasting with the coldness and capacity observed in several East Asian countries. In all cases, however, there is a constant - the absence of popular initiatives capable of organizing themselves in a network, moving away from the pyramidal logic and the monstrous bureaucracy that characterizes state apparatus; the people stick to the TV and watch, passive, the repetitive spectacle starring hordes of mandarins and writers; and, being stupid, they will be ready to sleep with a mask or bathe in tar if determined by a prime minister.

If humanity cannot, due to physical or institutional limitations, produce the income necessary to accompany the speculative financial drift, it must resort to devices to increase the capital involved in the economic circuit; and in the process, the globalized financial system and the governments that serve it disrupt societies, spread suffering, artificialize economies, offend the planet.

In Portugal, this summer, the savings rate exceeded 10%, which is close to zero (when not negative) values ​​in recent years; and this is related to major drops in consumption and disposable income. The people have the good sense to take precautions for worse days, however, the banking system and governments do not know what may arise; for example, they can penalize accounts with a balance above a certain amount to encourage consumption or, increase the tax burden to reduce the public deficit. The power wants to return to the zero savings rate so that the money can be captured by the financial carousel; its business is to generate debt, not savings. And in 2023, it is expected that in Europe in the euro, there will be no money on paper or metal; everything will be recorded, not on the stars but the servers of the globalized financial system[2], a much higher degree of control over the lives of populations.

Today, the so desired economic growth, that of the nebulous GDP, has as its central and most usual feature, the recourse to debts contracted by families, companies and, States. The financial carousel runs on another stage.

·              As a rule, families are indebted to banks, namely to support homeownership and means of transport, essential needs neglected by States; these, avid tax collectors, gave their satisfaction to the sacred "private initiative"[3]. The debt gear, originating in families, has the following framework:

·              Families are indebted for decades, taking advantage of the low-interest rates granted by banks; and the States show their parasitism by collecting taxes - IMT, Selo and later, IMI, ad secula seculorum.

·              The risk for banks is low because the property is subject to mortgage and surety bonds; the risk is entire of the families, in cases of unemployment or marital separation, for example;

·              Low-interest rates are in line with wages, also with weak developments. And the former do not particularly concern banks, as will be seen below;

·              The creditor banks are not waiting for decades to pass to recover the borrowed capital and interest. They add up a large number of credits, share their value in securities they place on the financial market, recovering the equivalent of a large part of the credit granted to debtor families. This operation is called securitization and corresponds to the constitution of a cascade of successive operations, with the inclusion of new credits, involving successive groups of long-term home buyers or others;

·              Briefly, there is a family debt built up for several decades and a bank granting the loan. This bank will collect several loans of this type (and others) and issue bonds that will be purchased by other institutions, thus recovering a value that includes the value of the totality of these various loans granted. However, he did not cease to be a creditor of that family and others; only an expedient used to anticipate the return of the value of loan.

The transaction put into circulation a value that is the mirror of the housing loans included therein; and, this can be multiplied n times, as many as the securitizations made involving the debts, being able to be associated with a set of mirrors or the constitution of the pyramids of Ponzi, whose maximum value is, theoretically, the infinite. Putting all those debts together, the same bank becomes the debtor of those who purchased the bonds issued but collected money for new investments.

The transaction put into circulation a value that is the mirror of the housing loans included therein; and, this can be multiplied n times, as many as the securitizations made involving the debts, being able to be associated with a set of mirrors or the constitution of the pyramids of Ponzi, whose maximum value is, theoretically, the infinite. Putting all those debts together, the same bank becomes the debtor of those who purchased the bonds issued but collected money for new investments. The financial balance does not change; what is added is the present and future fiscal puncture to pay the public debt and private indebtedness, resulting from the abandonment by the states of housing and public transport policies in favor of the much sung private initiative.

Companies also resort to debt. Low-interest rates are rooted in central bank policy in the same direction, with due repercussions on commercial banking, which in turn develops securitization actions to free up capital for new loans.

Cheap credit - and the almost zero rates of return on deposits - work together to encourage consumption and, at the same time, discourage savings; hence, an almost obligation is formed in the sense of indebtedness… as it is in the interest of the financial system and the political classes that, in the sequence, take possession of the future of people and companies, captured by the obligations in the financial system. The credit training is born, not savings but in the Ponzi pyramid in which it appears the practice of securitization.

These pyramids are also magnified by the constant entry into the "legal" circuits of money from various types of traffic (drugs, weapons, human beings…), corruption, etc. to the joy of the financial system and the distracted eye of the supervision of central banks and other pompous regulators; as a rule, governments are more cautious about fiscal leakage from small businesses and very little about tax evasion from the wealthy [4]. These regulators and national governments have traditionally been distracted by the money that circulates between the visible financial system and the dozens of offshore registries around the world, especially on remote islands.

By maximizing the availability of cheap credit, companies reduce the use of equity; and, in the Portuguese case, it has also become trivialized - and for many years now - the use, by companies, of contributions, due and unpaid, to the sleepy Portuguese Social Security , parasitized by all governments ... without any protest from the union world or the parties opposition sayings. The decapitalization of Social Security  is a recurring practice that is part of a tacit agreement within the political class.

The competitiveness of companies will thus arise from low wage levels of workers - atomized and disorganized - in working hours unpaid in precarious work, dismissal or, even facilitated, by layoffs facilitated by the government in covid-19 times.

This whole system based on credit cascades is extremely vulnerable even if anchored at very low- interest rates, to avoid difficulties for companies and, linked to equally low inflation rates; thus, it fosters a high consumer propensity for the population, which, with stagnant wages, embarks on recourse to credit, facilitated by banking.

·              This model of integration of entities - companies, especially the smallest ones, the States and the banking sector - depends essentially on the central bank, which can hardly cancel it:

·              The supply of the financial system cannot be stopped because bank credit would be much more expensive and difficult to obtain without firm guarantees, which many companies could not offer;

·                Its cessation would lead to a huge global crisis, it would be the collapse of a house of cards, with the bankruptcy of countless companies, indebted and with an accumulation of bad loans in the banks. The activation of mortgages would lead to the accumulation of real estate without buyers and, therefore, devalued, with upstream impacts, on construction, which incorporates elements from many industries, services and work;

·                The dismissals of workers and the mobilization of replacement income, coming from the state level, not prevent m difficulties in paying the installments of loans for housing;

The subsequent effects on public accounts (deficits) would affect the usual use of public debt "auctions", certainly with much higher interest rates than today.

 

This and other texts in:

 

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

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

https://en.scribd.com/uploads 

Grazia.tanta@gmail.com                                        1/10/2020                        1                                                   

 


[1] According to the Portuguese Minister of Labor, 42000 companies resorted to the simplified layoff (two minimum wages) and other measures that involved 380000 workers

[2]  The disappearance of physical money in Europe from the euro - today, a value of $ 14.5 ^ 11 - which will incorporate the availability of the financial system for speculation to which must be added the costs of supplying populations with notes and coins, leaving populations without any instruments of exchange other than a direct exchange of potatoes for onions, for example. If you think that the fortune of the five richest people on the planet - Bezos, Gates, Arnaud, Zuckerberg and, Ellison - is $ 414 ^ 9 … it might not be much…

[3] http://grazia-tanta.blogspot.pt/2012/12/a-nao-politica-de-habitacao-eo-imi-1.html 

http://grazia-tanta.blogspot.pt/2013/01/a-nao-politica-de-habitacao-eo-imi.html

[4]  In Portugal, the BES case is a good example of the interweaving of circuits and the parsimony of how governments view the issue, incorporating into their rosters people who are very well connected with the financial crime or senior law firms. No ruler wants to (or can) show himself as a Robin of the Woods, although the staff of the… sheriffs of Nottingham abound within him.