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The Real Reason American Capitalism Is Failing
Submitted by Bill Bonner via Acting-Man blog,
We’ve come to China to check on our investments. Not that we have many. But the fewer you have, the more each one is important to you. Of all the world’s major stock markets, only two are reasonably priced. China is one. Russia is the other. We are long-term bullish on both.
It is raining here in Beijing. Outside, the roads are clogged with slowly moving traffic. The scene appears normal for a big city. It could be New York, London or Paris. What is remarkable about the view from our window is that it came about so fast. Never before have so many people moved so quickly into the modern world.
Paris looked much like it does today after Baron Haussmann completed his makeover of the city in the 1850s and 1860s. The London skyline has changed significantly over the last few decades – with the addition of many new landmarks, such as the London Eye, The Gherkin and The Shard. But the basics of the city were put together over hundreds of years and remain relatively unchanged.
New York, too, was largely completed 60 years ago. But modern Beijing is brand new. A few years ago, it barely existed. In 1979, when former Chinese leader Deng Xiaoping announced that henceforth it was okay to make money, there were few decent roads… few decent cars… and few decent bars in Beijing. Now, they are all over the place.
Shanghai Composite – this is actually a good-looking chart these days … – via StockCharts, click to enlarge.
A New Beach of Hope?
And now China – not the US – offers a beacon of hope… and a model for development to the rest of the world. At least, that is the premise of Stefan Halper’s new book, The Beijing Consensus.
The former White House staffer says China’s system of state capitalism is more appealing than America’s market-driven version:
“Twenty years ago [...] globalization was driven by American capitalism and its two founding ideas – that markets, not governments, drive progress, and that democracy is the optimal way to organize society. [...] Today, in the world beyond the West, these certainties are eroding.”
Come to China, and you will be impressed, as we are, with the material progress made over the last 30 years. But this progress was not made because of the genius of China’s central planners; it was made in spite of them. China’s success is widely misunderstood. Then again, so is American capitalism.
What does it take to produce prosperity? Property rights – you have to believe that you can control and enjoy what you produce. Stable money – you have to be able to count on the medium of exchange. Freedom of action – you have to be able to go on with your business without too much state intrusion.
Communist China provided those minimal conditions. Its businessmen, entrepreneurs and hustlers went to work. The planners continued to plan. But their plans interfered far less with the economy than they had under Mao.
Meanwhile in the US, the planners… regulators… controllers… meddlers… and zombies – all those who prevent real prosperity – grew bolder and more numerous.
A view of Shanghai by night – prosperous in spite, not because of the planners
(Photo credit: anonymous)
California to Guangdong
Washington now pays out a quarter of all personal income in the US – either in salaries or benefits. That’s up from 21% in 2000. Every penny of that money results from a political deal of some sort, not a free-market transaction.
The US is a “democracy.” But democracy has little to do with material success. Businesspeople and investors are indifferent to the form of government. What they care about are the criteria we mentioned above – their ability to hold on to their property, the integrity of their money and their freedom to do business without too much interference.
As China’s state capitalism reduced the role of government in the economy, Democrats and Republicans in the US wrote new laws and new regulations. It was soon faster, easier and cheaper to set up a factory in Guangdong Province than it was in California. And once in business, the Californian found his taxes higher than the Chinese… and his regulatory costs far higher still.
Today, both the US and China have versions of “state capitalism.” But capitalism works best when the state keeps its proper place. When it tries to dominate and control the economy, the cronies take over.
Then costs rise … growth slows … the rich get richer … and everything goes to hell. That is the real reason American capitalism no longer looks so appealing.
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Bill Bonner on ZH. Now THAT's progress.
Two words: "Crony Capitalism". Today, this pretty much covers this whole abortion we all used to know as Capitalism.
american capitalism has been hijacked for quite some time- ever since "To Big To Fail" was introduced. fix glass steagal and tbtf would be a great start. everything else is just a side show
It it moves, tax it. If it keeps moving, regulate it.
Its quite telling and sad, that people want the government to save them. They LITERALLY don't know how their life would improve, simply by the government GETTING OUT OF THE WAY.
If they tried to start a small business, say a lemonade stand in Times Square, they would soon find out.
But seriously, whats the biggest economic boost ANY government can provide? A tax cut.
And I haven't heard it suggested yet! ANYWHERE!
As long as property continues to be needed as collateral, it will continue to be stolen.
Until we actually have a free market based unit of account all this other talk is just fluff.
"You can have a free market based economy and thrive, you just have to use our chosen bank's currency (lol I like that one) to pay taxes and you have to accept it for debts."
pods
Competitive capitalism can work. Monopoly capitalism works the way we see it working today.
Try central banking with centrally planned debt-based fiat money and completely rigged markets as the reason for failure.
$60 trillion in US total credit market debt now outstanding.
Nice work Federal Reserve!
Right. On.
If it doesn't move, confiscate it. If it doesn't move where you want it to, drone it.
If it stops moving, subsidize it. FIFY
No, Glass-Steagal is a red herring. It's not the government's job to pick which individual business lines make sense for an industry. Fix the FTC and anti-trust enforcement, and everything else will take care of itself. BREAK UP THE BANKS.
First thing to restore would be sound money. Outlaw fractional reserve banking and you would instantly remove the second largest parasite on the economy. The financial sector is the second largest drain on the wealth of the nation. Since they own the gov't, they get their way. Some would refer to that relationship as "fascism".
My best example of the fruits of capitalism revolve around a guy named Joe G. Joe was hispanic, got caught up in an armed robbery beef in Socal when he was 18. Did some time. In and out. When I met Joe in 1989 he was pushing 40, getting sober and working at a car wash (only job he coud get). At the end of every work day, he'd go through the garbage cans at the car wash, collect the aluminum cans and when he had enough, he'd cash them in and go to the local coin shop. He'd buy 4 or 5 silver eagles. Didn't see him again for almost 20 years. Told me he'd been able to amass almost 800 ounces of silver and when the market went belly up in 2008, was able to purchase 1,000 shares of PG&E down around $5 a share. Today PG&E is about $45 a share. So Joe went from nothing, excon, no education, no prospects.....he went from nothing........to something.
That's why I believe in Capitalism.
Joe made a mistake and paid for it. But he was awake and paying attention to the world and took advantage of what he could do to better himself. Unfortunately we now live in a country where people like Joe are rare, instead we have a population of cattle to be herded hither and yon till they reach the slaughterhouse and never understanding how they got there.
Exactly. It's laughable when I hear people say they don't believe in capitalism (Occupy), becuase most have never lived in a truly capitalist state.
Ummmm, is this article suggesting that the empirical evidence has determined that crony communism beats the shit out of crony capitalism????????
Interesting.
Also interesting will be when the Chinese run out of rich customers. Will they have to sell to their fellow Chinamen? Will the minimum wage have to go up or down to accommodate all that production? I guess we'll find out in time. (My guess is that all excess production will be destroyed in order to keep prices high.)
China does not sell to rich customer! They sell cheap stuff to anybody.
They sell to foreigners who are richer than they are. Geographic Arbitrage: Buy from cheap countries (workers) and sell to expensive countries (customers). Works great until the jobs all go to the cheap countries and the expensive countries suddenly don't have any rich workers, I mean customers any more.
The difference is made worse by the higher land prices in the expensive country. Land prices can't go down because then collateral will go down ...
Not quite.
It's more like crony capitalism lite beats the shit out of crony capitalism supersized.
The commie Chinese are less commie than the US.
I get that same headache when dealing with people and talking about other countries. Most of them have no clue how hindered they are in the US.
Relentless101
Do you mean the Adam Smith Free Market Economy where many buyers and sellers compete on an equal basis or do you mean Crony Capitalism where government favors are bought and sold by monopolies ?
It was when the Occupy movement started focusing on the Banking industry that they got demonized and quickly excommunicated from the Dems.
Why doesn't Bill just say he hates the Constitution?
C'mon Bill, don't be a pussy...
Do you have any links to back up this attack on the author?
Or are you just bored today and looking for a fight?
By all accounts, the Constitution is a total failure.
As an enabling document it has created a tyrannical fascist world proto-empire.
What kind of moron would support something like that?
Just re-write a constitution just like so many others countries did. It's not like some religion that rule out any (even minor) changes in they Holy books.
The founding fathers could not take in account what has changed and shown up over the last two centuries.
It would end up the same and become a self-perpetuating lie like it is now.
Fools want government, stupid people think they can control it.
Gotta love the Shanghai at night pic.
Air quality tells a different story.
http://aqicn.org/city/shanghai/
Just curious, since when is there capitalism in the US anymore. In 2001, Goldman Sachs came up with BRIC and Globalism but only if there was a "New Capitalism" (aka Progressive Socialism).
Sort of leaves out some of the other motivating factors of the "rise of China". Dollar pegging, US sponsorship as MFN, massive tax breaks for Multinationals to move operations to China. Special WTO deals, etc, etc. China's "rise" is akin to a footbal team where they are the only one on the field, it's 4Q 2minute warning and the score is 2-0(And that's being nice with the safety).
And let's not forget the mental masturbation of the Club of Rome in 1970.
And all the QE bashing on ZH, but China goes relatively unscathed now Xi Li are releasing real numbers that made Bernanke look like a Quaker with QE.
And so on and so on.
The World is failing because of globalization and socialism, stop using the US as the only whipping boy. The EU and the rest of EM aren't looking that great either.
@El Oregonian: "Two words: "Crony Capitalism".
I'll see your 'Two Words' and reduce them to "Zio-Capitalism" (Z-Capitalism - the end of true Capitalism) or to "NWOism".
We can debate at McMenamin's (if you like) the thesis that "Religio-political ideology has taken over sound money, sound economics and sound policies." Our Government "By, For and Of The People" has been taken over "By, For and Of The Few", and given us the ever-growing mess we have. If you prefer the more sanitized and cerebral version, we can talk about how "Corporate Governance has failed to do what it is supposed to do, and Executives are running amuck with Crony Capitalism".
IOW... Crooks, slime-bags, opportunists and sociopaths have taken over, while the scared and bleating masses watch it all happen -- hoping and pretending (like Sheep) this this won't harm them severely or permanently. The People are acting like Sheep, while ravenous Wolf packs are popping up everywhere.
"Today, both the US and China have versions of “state capitalism.”
"State Capitalism", "Crony Capitalism", "Regularized Capitalism", "Private/Government Partnership" ...
The correct term is "Mercantilism", which is when private individuals use the power of the state to enrich themselves.
Capitalism:
1. You consume less than you produce = capital.
2. You invest capital in a free market
No guarantees, if people buy the product or service that you offer, you win otherwise you lose. No bail in, no bail out. The government merely provides the means to enforce contracts.
When the direction of capital is forced to move at the whim of the ruling class it will always move towards them and DemoCRAZY is just a softer form of fascism, both take your shit by force and promise it to another for their vote, and if you get too uppity they both send the Commissar of revenue after your ass.
Not really. When the banks voided out all county seat paper deeds in favor of database entries and Linda Green documents (2008 to today) they weren't trying to reorganize the nation along military lines. It was just a property grab. Shoplifting people's homes. And it was the courts that protected them.
American Capitalism these days is hardly capitalism!
Although the party owns most in China, The people of China rock-and-roll when it comes trade.
American Capitalism these days is hardly capitalism!
As I said above, the empirical evidence suggests that crony communism is more successful than crony capitalism.
You can backpedal and re-form your arguments and blabber on or how about we finally forget all the idealistic bullshit arguments and just agree that strong overpower the weak and use whatever bullshit propaganda is popular at the time to justify their actions? (... as someone else once said - until such times as they can't be bothered and don't bother with the propaganda any more).
Not that I don't like capitalism. I do like a little capitalism here and there. Just not interested in all the bullshit arguments and re-definitions others like to indulge in. The aristocracy were quite happy to re-brand themselves as "capitalists". Eventually, a couple who realise that they are losing, will break away and call themselves "anarchists", and then because the plebs stop listening to them they'll have to rebrand themselves as "gods" until a new "enlightenment" and the great wheel will keep turning.
The Squid bought the politicians and the world fair and square. It was a free market transaction.
Actually, others will assert that the "free market transaction" itself was propaganda hiding the violence behind the scenes. I can not and will not say that they are wrong.
"Yes mummy, that is right. My three year old little brother chose to give me his ice cream. He said he didn't want it. I'm actually doing him a favour ..."
Gummint: ctrl-alt-del
Who's up next, The Mogambo Guru?
http://map.ipviking.com
Has anyone seen this?
cyber war...
Interesting.
Utter bullshit. For attack targets you only see Hong Kong get hacked, not China.
Also, by the time I clicked off, the US had been hacked over 800x and attacked over 180x. You mean to tell me the US wouldn't do some serous damage to countries other than Portugal and France?
What's interesting is the activity out of Iceland.
These are a myriad of different bots testing for weaknesses. As for locations, I note that many of them are only as detailed as the ISP, rather than who is operating on their networks. As for "the US," realize it represents 300M people, NOT the government. Also, these botnets are actively seeking out other machines to add to their network as slave/zombies. For all you know, your PC could be one of them (or mine). This is exactly the way that Healthcare.gov was hacked. Someone found a test server with a default password and installed their software on it in order to zombiefy it.
That said, I won't claim absolutely that this map represents anything, as this is the first time I've seen it and know nothing about the sponsor site (other than they sell protection).
Makes more sense, particularly given the number of "targets" (e.g., computers) in the US, and the potential "value" of each.
Perhaps it is because the President, the Attorney General and bankers have committed all out treason.
Here is how John McCain is bringing ISIS into the US as part of his support for war against America.
Really?
I thought crony capitalism in Amerika never better
Crony capitalism is entirely based on your connections. Most of us aren't in the club.
Government intervention is really counter-productive, pretty much everywhere one looks, but I think the engraving on the stone should read:
PHYSICAL LIMITS TO GROWTH.
Yes there are physical limits, but the lack of sustainability is NOT a lack of growth issue.
What we're seeing here is a wealth-transfer system fully supported by government intervention that undermines everyone's ability to survive. Growth is not a requirement for survival for the common man.
It is however, a requirement for the parasitic wealth-transfer system that bleeds a host dry all while trying not to kill it.
And I'm sure you know this.
+1. It is however a human characteristic to some degree. Hardwired into us. But, I digress. Your point stands.
I don't disagree with you at all, except the part about: "government intervention that undermines everyone's ability to survive." I think government/financial intervention is working very well to improve the lives of the top 10 to 20 percent or so. I think that number will shrink steadily over time.
"Sustainability" is interesting to me: competition in a non-growing system is a zero-sum game.
Zero-sum? Not when the competition is about individuals seeking the most efficient way to meet the needs of others.
Wealth only needs to grow unbounded to support the financialization that has undermined capitalism by removing risk of default (i.e. securitization). In a non-financialized world, one would never see malinvestment in the form of producing millions of unneeded houses, strip-malls, cars, etc... as the expected return from the over-production would not pay-off to investors.
Instead though, we see this happening due to the Fed trying to keep the punchbowl spiked, in order to keep the debt-money ponzi afloat, while giving politicos "jobs programs" to gloat about.
Yes, exponential growth can never last. Thing is, it is not a naturally occurring side-effect from creation of wealth along with rising standards of living. It is instead, a blatantly criminal act from those who would rather plunder the wealth of others instead of producing their own.
How could aggregate living standards continue to rise in a finite environment?
It's a hypothetical - we may be very, very far away from any hard limits at this point. I don't think so, but that's just my viewpoint.
The universe is not finite. Someday you old boys will understand.
Yeah. Funny how folks seem to think that engines can somehow be fired back up (here or elsewhere) and return the world to happy exponential growth.
Governments in most cases I think start off with the right intentions. But, they always follow the same path into the shitter... and usually take the people right down with them.
Spinning around the drain in ever tigher circles now!
Spiraling in a gyre, although Yeats' imagery describes the circles as getting more distant, and farther apart. No difference in final outcome, however.
FUCK SOCIALISTS.
You are clueless as to what Socialism is.
said the pot to the kettle...
If opposition to crony capitalism and kleptocracy is Socialism, it sure makes Socialism sound good. Black propaganda is prone to blowback like that...
Crony capitalism is socialism, its just spelled differently.
The fucking cunts involved are all the same cunts
Redefinition of words. Until the words mean nothing.
But, yes, scum rises. Whether it's people who sell out, or start as sellouts, the bait is always dangling.
As I already said twice in this thread, I think we should try crony communism. I think this article is telling me that it works better than crony capitalism.
Bwa ha ha ha ha ha ha ha haaaaaaaa!!!
Oh please - as if the leaders of socialist governments aren't famous for self-dealing, siphoning off public resources for their own private gain and protecting their own elite status and privileges.
You could well be right. about that.
I will explain it to him for you..
Socialism is a creed and a mantra espoused by the most moronic fuck witted cunts that ever drew breath. So Vile and Evil is this fucking creed that pedophiles fucking baby rabbits are better human beings.
Fucking socialists are the filthiest scum ever born and any right thinking person would blow ant fuck that says it is socialist to hell and then burn every fucking nasty little offspring they might have too.
There .. Do you think he will understand better now
@himaroid: "FUCK SOCIALISTS."
False Choice, False Argument. You are leaning your ladder against the wrong wall. Please pick the Real Argument. If you still don't know what that is, then I/we can't help you.
You guys will learn that you are going to have to pick a side. In bar room brawls the guys that try to stay in the middle always get their ass kicked the worst.
Failing? I would say failed.
This isn't even remotely capitalism.
https://www.youtube.com/watch?v=SkYl_AH-qyk
I give the same response to you as to "himoroid" above...
False Choice, False Argument. You are leaning your ladder against the wrong wall. Please pick the Real Argument. If you still don't know what that is, then I/we can't help you.
Central Banks and government now control the means of production which is why we hear talk of cash distribution to the peasants to keep them off the streets.
European Union is the same over-burdoned with rules and regulations only the biggest corporates survive and unemployment grows every day.
Capitalism is dead.
I wouldn't go so far as saying Capitalism is dead. It's just gradually falling under the radar. As long as there are two people left on this dirt ball, there will be voluntary trade.
True Capitalism relies on Freedom of Association, which will go on, in spite of Leviathan and it's minions.
In fact, even the rulers will eventually resort to black markets after their attempted economic control fails to deliver the goods.
... and under that definition The Squid bought the government fair and square in a free market capitalist transaction with no government interference!
From a very old Mad Magazine:
Taffy was a Rich Man
Taffy was connected
Taffy spent 500 grand
To get his man elected
Taffy's now Ambassador
And struts around with pride
Why don't you spend 500 grand
To get your man inside?
Yes, yes, I forgot to mention the associated lobbying and getting laws changed, but that was democracy in action, errr, along with some agreements with people who worked in and out of governments ...
What a bunch of gibberish.
John McCain chillin with his ISIS pals:
http://img.wonkette.com/wp-content/uploads/2014/06/mccain-ISIS.jpg
ISIS keep beheadin' folk, and I'm going long maille (chainmail).
AMERICANS
AMERICANS
This government debt issuing, money-printing, Washington DC planned, progressive crony-capitalist corruption is CAPITALISM?
who knew?
Bill,
Who is the common denominator of this mess. Meanwhile in the US, the planners… regulators… media... controllers… meddlers… and zombies – all those who prevent real prosperity – grew bolder and more numerous.
Who do we blame when it all goes to shit? It won't be the bad Muslims or the crazy mexicans jumping the boarder.
What no mention of massive empty cities, insiders flee with ill gotten gains, or having a work force that will work for $1 a day(until they won't) or massive debt everywhere?
When was Japan suppose to over take the US...wasn't it 1986?
Capitalism? No.
Corporatism? Yes.
Been that way for over a 140 years. Anybody who tells you or tries to sell you anything different is either a liar or a fucking idiot.
Well, this is hardly the best time in the last 140 years to be a small corporation in the USA.
Pretty sure it would be a big improvement if it were.
Capitalism is great at burning through as many resources as possible as quickly as possible in an effort to, "put them to good use."
That is why there are literally no examples of pure capitalist systems. All capitalist economies run into physical and social limits which force them to evolve away from pure capitalism towards the kinds of systems we have in place today.
The causes are biophysical in nature. Physics will always laugh last.
...there are literally no examples of pure capitalist systems.
Hong Kong came pretty close and they had been doing very nicely for a long time when the PROC took control in 1997.
We'll see how that works out.
Ah, bless the innocence of young children. So sweet, so heartwarming...
Crony capitalism is the rule rather than the exception. Two merchants having dinner will eventually get around to conspiring against the public. Using government to protect against theft is actually relatively new in the world. More common is a class of capitalists using government to protect and promote that theft. Regulations written to prevent theft are odious to thieves.
Look beyond that failure to protect, and you'll see capitalists. Look beyond that promotion of theft, and you'll see capitalists. Your local mom and pop grocery may screw you over, but when it scales up, it will inevitably try to screw you over. They need to subvert the cop on the beat to do it, but that's just an expense. Governments may and should protect property rights and consumer rights, business never will.
Capitalism is useful, but not as an organizing principle for society.
Capitalism is nothing more than saving more than you consume, and using the savings to fund further production.
Which means it isn't an organizing principle in the first place, but a side effect of the organizing principle that fosters it, which is individual freedom protected by property rights.
Without government, capitalists (or any other people) have no power to enforce their collusion upon anyone. With government, politicians are bought in order to create barriers to entry for their competition and all other sorts of protectionist laws that harm competition.
Saving for the future and using the surplus to improve life started with farming tribes. Which were communal, status oriented groups. You can upgrade it with money, but it's still the same.
Property rights are a social convention, and if they're not enforced by society, they don't exist. The preppers can bloviate all they want about defending their homes with guns, but that doesn't last long. Groups will always defeat individuals, whether it's armed gangs or corporate monopolists.
Without government, anybody with a strong arm and a sociopathic mindset will just grab what they want. It's just the current government says 'free markets' every time it's their paymasters doing the grabbing. Makes government kind of neutral. Puts the burden on us to grab it back from their paymasters.
Exactly. There must be a commons to defend private property rights.
There is, it's called your family + shotgun.
"Capitalism" (essentially a term coined by Karl Marx) is shorthand for private ownership and free enterprise.
Crony capitalism exists when the protective and law enforcing powers of government are used to advantage one party at the expense of another in circumstances when both should be treated as equals.
It is certainly possible that when government is too small and weak, rich and powerful private interests can take advantage of and abuse less powerful and wealthy private interests.
But it can also be the case that when government is too large and powerful this kind of thing becomes much easier if not inevitable.
Wake me when DOJ indicts - let alone prosecutes - a SINGLE individual who works for a primary dealer.
...
The assistant attorney general who should have rained down hell on wall street ... what is he up to now?
Lanny A. Breuer is the firm’s Vice Chairman and one of the leading trial and white collar defense attorneys in the United States. He specializes in helping clients navigate corporate crises, anti-corruption matters, money laundering investigations, cybercrime incidents, Congressional investigations, securities enforcement actions, and other criminal and civil matters presenting complex regulatory, political, and public relations risks.
Mr. Breuer served from 2009-2013 as Assistant Attorney General for the Criminal Division at the U.S. Department of Justice.
http://www.cov.com/lbreuer/
sitting on your hands has its perks once you leave 'public' service
It is far more profitable for our government to punish the stockholders than the people who did the crime.
Examples abound where the share holders suffered for the misdeeds of management... The Principle agent dilemma. How many billion dollar settlements have there been in the last few years? Well, except for Countrywide...
Why would New Class Holder indict a CEO or any other New Class manager? They are cut from the same cloth. No, it is much easier and more profitable to punish retirees, pension funds and IRAs than to prosecute a friend.
Actual capitalism? In Murrika the Brave?
Not since 1913.
Thank Bernanke for this. If the fed wouldn't have gone so retarded QE, things wouldn't be so one sided BTFATH . Regulate and audit the fed and that'll at least be a start to leveling the playing field.
Can't remember who said it, but in a socialist system it's not about becoming good at something or providing a good service/product, it's about who you know because when a select few pull the strings, the ones that know them get the riches. The fed for instance is controlling the strings right now, and since they have been given so much power, those that are close to them make all the money because they know what they are up to. If you had a friend at the fed that said, yeah we are going to get Citadel to buy every fuking dip in this market, we are going to paint the tape, and we are not going to stop until X date, you wouldn't have a problem buying the all time high or buying each dip. You also wouldn't have a problem getting on TV and saying, hey it's a bull trend, don't fight the fed or the trend, hahaha it's fun and easy, it's a great time to buy and anyone who disagrees is a complete idiot.
American capitalism is not failing, it was killed, converted, by the Rothschild banksters in 1913 when they purchased the US government and created the United States of Crony Capitalism--The DC US.
The ponzi and theft are working just the way they are supposed to.
The only failing is the failing of the American people to stop it by saying "no."
An American, not US subject.
Why no pictures of Moscow?
I have not been there in a long time. It would be neat to compare it to Shanghai.
"China is one. Russia is the other. We are long-term bullish on both."
It is hard to say what will happen in China in the future ... whatever happens, some Chinese will make money, but for foreigners, China is a sucker bet:
http://seekingalpha.com/article/911151-chinese-stocks-classic-value-trap
The Public Be Suckered
http://patrick.net/forum/?p=1223928
I'm not feeling well and am not too slick on the uptake today.
If government intervention is the problem, how is state crony capitalism and building ghost cities any better?
It's over Buba. Let's move back to the farm.
The 800lb gorilla in the room is called fascism.
The real reason capitalism is failing in America.... because we don't have real capitalism in America.
Rather than capitalism, I consider it "Banksterism". First, let's turn the banks into casinos with access to people's savings. Then bail them out with $100's of billions. And continue the bailout with zirp, essentially stealing peoples savings, so they can finance their malinvestments at near zero cost. Maybe people consider a .25 % return on risk appropriate in their bank deposits? Just like Spanish and Italian bonds yielding 2-3%? Bankrupt economies both! Give me a break.
The whole banking system is as bankrupt as it is corrupt. And be reminded that if the current rate subsidy continues, but the system has not re inflated their questionable assets, the banksters have already advised you of a bail-in regime with which to recapitalize themselves.
What did rothshield say, " give me control of the issuance of a country's currency, and I care not who writes it's laws"?
Save the Fed, Federalize it! Regretably, any person of influence so inclined seems to end up dead.
I agree. The new modern 21st century way, and internet dependent way, in which I now make a living is under constant threat of destruction by Politicians in State Houses, Washington and the Giant Greedy Communist Corporations that seek at all cost to regulate and legislate little guys to death. We are cutting into giant corporate market share, and they are fucking using government to the full extent to try and exterminate competition. The excuses and bullshit the giants use to influence the communist governments of America know no end. I am sure it is the same for every 21st century new economy person making a living the old fashioned way, working for it outside the corporate dictatorship!
Capitalism is under attack in every form it might try and take, and the marriage of Government Regulators and Big Corporations are at war with free enterpise. Both provides and customers. Near as I can tell, Bankers have no way to profit from my line of small business, thus they seek to destroy any business in which Bankers can not take the lion's share of returns.
Totally agree... Politicians and diapers have one thing in common. They should both be changed regularly, and for the same reason.
The cartoon says more than the Article.
The article's title can be answered succinctly:
The problem with American Capitalism is that it isn't Capitalism - and it isn't American. It is Edwardian English Corporate Cronyism imported by Benjamin Strong, et al and referred to euphemistically as the 'Mixed Economy'.
Lets not forget, there's a yawning fissure between capitalism and American capitalism.
Hi Freeebird.
I have a hard time investing in a country that makes up GDP numbers and cannot be counted on to keep their word for anything... like the US. China however is far far worse. Everyone knows the numbers are ginned.
Chins has a long way to go before I would ever consider investing there. The troubles in Hong Kong are starting to boil, crony capitalism is bigger there than the US, and the Chinese communists that run that all powerful state could at their discretion, take all your investment at any time, (like Venzuela has on many occasions), and there is nothing you could do.
Canada, Iceland, Lithuania, Shanghi and to a lesser extent Taiwan would be the international economies I would have a bit more comfort with, if I were looking for international exosure utside of ETFs.
Capitalism isn't something sold by the meter, a device's output between on and off, a system finally that could be implemented by good people with fresh airs at any time such a get-together comes about.
It's stuck on history and as a child of this it has an expiring date.
At base we have a competition about the best solution. The best solution in terms of capitalism is to gain all for nothing, a predatory scheme that capitalism shares with the "systems" to achieved that have existed before.
New is, to do the tricky part with money.
The system starts, let's see, develops its possibilities, gets mainstream and indispensable. Mainstream but goes too the wit behind the show. To gain all for nothing comes in reach. For the winners of the competition.
And nothing goes anymore. The show has come to an end. People looks old and at all, robbed.
Don't try new tricks with an old dog.
capitalism is failing because humans are
merely a deluded variety of ape with a fantastic
and entertaining imagination.
so.
gmo in the gut producing
pesticides. food become poison for
adults and babies.
take charge of your health
genetic roulette
Friday September 5 1:00pm 1 hour
Public Affairs
and...
9/11 pentagon dialog, inside missile and bomb attack. no plane.
guns and butter
Friday September 5 9:00am 1 hour
News
http://archive.wbai.org/
..
the most important information of this day.
property ownership? what is it that you think
you own? really?
There is no definition of historical capitalism here. As ideological motto the word doesn't mean much.
And another simplistic sermon about the government. Forgotten is that all wealthy nations are built on a large and effective public infrastructure which lowers the cost of business and is a condition for it to take place. Try starting a business in Mozambique (lower tax regime). Transportation, communication, co-ordination, education, health-care etc. These are essential investments that all prosperous societies have made.
"...all wealthy nations are built on a large and effective public infrastructure..."
Not true. You don't need government to provide any infrastructure. In fact, government spending on infrastructure actually dissuades private spending on it as companies that depend on free decisions of their customers cannot compete with government 'enterprises' funded by forced taxation. The Interstate Highway System, for example, destroyed the private intercity passenger rail system in the US. It also destroyed privately funded innercity mass transits systems, such as trolleys and busses, as educated people with more money bought cars and houses in the 'burbs'. And while there are some places, such as hilly terrain, where railroads are not practical, those areas can have private toll roads (or 'turnpikes').
The British rail transportation systems were initially privately funded and covered the country so well that cars were not even needed in many places. By copying the US, and building and paving roads, the British are slowly but surely destroying their railway industry.
And it is not just roads. There is nothing that isn't better done when privately funded except law enforcement, judiciary proceedings and conducting war.
When Dragon-Kings come calling...
http://andreswhy.blogspot.com/2013/11/dragon-kings.html
Capitalism has not "failed" - it has not been allowed to succeed.
If you piss in the chili, don't blame the recipe.
Capitalism is what its inventor, Adam Smith, says it is: parties to transactions must be cognizant of the interests and presence of the Creator of the universe, God Almighty in truth and justice, reason and honor (hence the Creator is our named Sovereign, and "Annuit Coeptis" is the key tenet in America's credal civil religion).
With Bush and Cheney yet to be brought to justice for their patently obvious 9/11 treason, effected by Mossad and the same Roman Catholic CIA/FBI settled law proves murdered JFK, viz. 'Hunt v. Marchetti' (so also Dr. King, obviously), America, Isaiah's foretold "Israel" is usurped by "the real Anti-Christ" (note the Fasces on the front wall of the U.S. House) and is now, understandably, "de facto" fascist.
Only Godless morons or satanic gaslighting traitors will pretend to disagree.
So this guy is saying that there's good fascism and bad fascism. Hmm.
The Chinese have just recently banned GMO feed for their livestock. They don't poison their people with fluoride or GMO food and minimize the use of vaccines and promote cheap herbal chinese medicine. They don't depend on government and trust nature and emphasize the immune system to keep one well.
Few realize the public's health, independence and clear thinking abilities have been disabled
by a poisoning agenda to chemically dumb them down and make them anxious, apathetic and depressed.
View neurosurgeon Dr Russell Blaylock's utube video
http://www.youtube.com/watch?v=fB3xcN_eoPo
that exposes this program by our hidden rulers.
According to 22 year World Bank attorney Karen Hudes, a hidden "super entity" owning 43,000 corporations is controlled by the head of the Jesuit Religious order known as the Black Pope. They have a reputation since 1540 for secrecy, deceit and assassinations.
These are the master poisoners of history and have been accused of poisoning White Popes,
who represent the public face of the church, in 1773, 1939, 1958 and 1978, that tried to remove
this organized crime syndicate scourge from the Catholic church.
The Jesuits have been implicated in the assassination of Abraham Lincoln and JFK and have
been expelled from over 100 countries for their vicious plots to gain power.
According to Hudes, their accountants were the Rothschilds who were behind the Federal
Reserve banker plot to take control and embezzle America's money since 1913.
This parasitic, criminal banker organized crime syndicate, masquerading as a religious order,
has been secretly controlling the west for over 100 years, mostly through a poisoning agenda
using vaccines, fluoride, GMOs and toxic chemicals and metals in our food, water and medicine
in order to subjugate the masses and disable all threats to their domination.