Tag Archives: Capitalism

Capitalism . . . Creator of Poverty

The great enemy of the truth is very often not the lie — deliberate, contrived and dishonest — but the myth — persistent, persuasive, and unrealistic.” – JFK

According to one of my financial heroes, Bill Bonner, money is not wealth. It simply measures wealth like a clock measures time. Wealth is what has been produced, is made available and that which you can buy with money.

When banks print money out of thin air it is like adding an extra hour to a clock. It doesn’t make time any bigger, it simply distorts it and disorients the observer. What counts with money is that it is honestly made available to purchase goods and services. Honest money cannot be separated from the real economy where those goods and services are produced.

Say’s Law offers the wisdom that “You buy products with products . . . not pieces of paper.”

QE in the US, Europe and Japan is following Zimbabwe in separating money from the real economy. Trillions of dollars have been printed that mislead everyone into thinking they are wealthy, until they see the need for a wheelbarrow full of this pseudo wealth to buy real wealth – a carton of milk. We aren’t there yet but that is where we are headed!

Similarly, profit is not wealth but merely a measurement of overall business efficiency. When you combine these two illusions you arrive at the curse of the 21st century . . . debt. Debt offers the most efficient means of producing profit, by producing unreal money with few overheads.

With all of this in mind let me give you my perspective on what is going on and remember I’m no economist, but even to my simple mind we are now heading to an almighty financial catastrophe. I will use the car industry to make my point but the principles can be applied across today’s financial world. Continue reading

NHS and the Obscenity of Capitalism

Madness is badness of spirit, when one seeks profit from all sources. Aristotle

I know someone whose mother was the youngest of 11 kids and, in the latter years, watched as each of her brothers and sisters died from cancer, in one form or another. She then watched her husband die from it. He was a temperate man who took to whisky in the latter months to get 4 hours reprieve a night from the “wire brush that was continually at work in his anus”. His brother also went from it, and his youngest son from a radiation leak in the nuclear submarine that was his work. This incredibly stoic lady also eventually succumbed to this evil disease.

I knew the family well and am confident that if I could call her back to day and tell her that there are now companies that seek to make profits from the suffering of others she would look at me with total incomprehension. To her our health was a responsibility of the state, as the only body within Society capable of providing the truly vocational service with the essential care and compassion needed for our sick and ill at health.

Over the recent decades Capitalism has had a good run for its money, as it ravages the Planet and abuses the inhabitants by relegating humanity to ‘consumers’ of its increasingly shoddy products and services. Not only are the products and services shoddy but so too is the treatment of the people it employs, and without whom it could not function. Having brought the Planet and its healthy inhabitants to their knees it is now turning its toxic attention to the unhealthy within Society, as the last remaining and untouched source from which to continue its abject addiction to limitless economic growth.

In a healthy Society it would be the job of government to restrain this mad rush to self-destruction, as it looked to the best interests of that Society as a whole. Sadly we are in an era of career politicos. Clever young men who attain high office and vast powers without the necessary years behind them to provide the essential wisdom that fuels the integrity needed to wield such power.

Society is therefore cast aside by them as they are seduced by, and bend to, the will of global corporations who have now set their greedy eyes upon the sick. Modern government is bereft of mature and visionary leadership, something we are made increasingly aware of within the corridors of power, from abuse of taxpayer money to abuse of the young and old alike. It is reminiscent of the latter days of the Roman Empire and no doubt will meet a similar fate as history repeats itself with monotonous regularity.

Or, we could wake up to the reality of what is happening and seek people who have a proven track record of standing up to multinationals and are in no short supply within the charitable sector. They have the requisite mind-set that focusses upon the sustainable management of this Planet, and a care and compassion for its inhabitants. Putting this thinking and values into parliament would instantly transform the frightening reality we currently face. We could do a lot worse!

Until the next time.

Thinking that is taken from his book: Global Magna Carta. Returning Power to the 99% . . . If They Want It! By J T Coombes