Pump It Up

Communism

Wrong type. Interesting though. Who thinks that Communism came about as a moving force in European politics because two German guys wrote a book or because Capitalism end s up with most of the money in the hands of a few, who then abuse their position of financial and political power? (For more details on abuse of power see: Abu Graib)

Correct Mrs Jones. Answer B.

Now who sees the difference between 19^th century capitalism and the 21^st century model?

Take your time. No? Me neither.

The Golden Rule

Communism failed and fails because it puts the assets of a country in the hands of a few. Abuse of power and massive inefficiency result. Capitalism does the same but pretends to be more efficient As discussed in Eat My Shorts, this ain’t true. The only economic rule that is true and in all cases true and is, therefore, a law and not theory is: Them that has the gold makes the rules.

So, in a democracy like the USA, of course that rule, that law cannot be true and the Government can be changed(Bush Clinton Bush). In the UK that is also not the case ( Gordon I did not vote for you, actually more than 65 million people never got a chance to vote for you).

So that’s okay. Democracy roolz. Now state intervention takes place a lot ( Police, Fire brigade, hospitals, rules for driving, who can die for their country, who must die for their country etc.) and it takes place in stock markets. Not long ago insider dealing was the not only not criminal but the norm.

So how about rules to prevent gambling on the markets and force people to invest in the true value of a company. Dream on.

Did He Really Say That?

The responsibility of large business owners is exemplified, perhaps in the words of Andrew Ferrier, the chief executive of Fonterra, a New Zealand company that owns 43% of Sanlu, a Chinese company that may have been selling milk products to chines mothers that contained melamine, causing, it is alleged, sickness and death. Fonterra seems to have known about the problem shortly before the Olympics. Cynics believe that the Chinese kept it under wraps so as not to look bad. There was no public recall, but an “unpublicised” one. Fonterra could have said something: New Zealnd is not yet part of China, and anyone who has seen the All Blacks play would be ready to believe that they fear nothing. Ferrera said nothing. Why? Well according to Andrew, “ If you don’t follow the rules of an individual market place then I think that you are getting irresponsible”.

Basic Economix

So, in a nutshell, don’t expect the government to protect you. If you fly in a plane they will set rules about safety but in the markets you are on your own. If you step into the market it is the wild west. Don’t believe anyone who tells you differently. If you put your money in be ready to lose it all. Capitalism by its nature puts most of the money in the hands of a very few (do the stats if you don’t believe me) and if that was not enough: Them that has the gold makes the rules.

And the whole place is full of low protein, high carb bug-eyed sheep awaiting the next panic.