Adonis Diaries

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Tidbits and Notes. Part 273

L’elegance de la misere? Une chambre, une natte a meme le sol, des clous aux murs pour attacher des vetements, un seau d’eau pres de la porte et un balai… Les liceens qui habite ces taudis payent pour la seule lampe electrique

Nous ne sommes pas des personages, ou des characteres… nous sommes des histoires. Un paysage, une certaine lumiere, un crepuscule, un aube, une rencontre, un au revoire, un entretient, un malentendu, un moment d’amour fou… On se reconnait dans une de ses histoires qui nous decrit.

All the Israeli settlements, paid for by the USA taxpayers, would ultimately shelter the returning Palestinians to their home land, once Israel foolishly undertake another pre-emptive war.

Something has to give in Venezuela: the people will decide who is the constitutional President and the other one will be judged as traitor and executed

“Life begins at the end of your comfort zone.” Thus, do you due diligence to shorten your comfort zones periods and have the 8 lives of a cat?

The Neo-Zionists “strategic centers” in USA are running Israel society: The are no good options for Israelis in order to vote “democratically”. Israel is pressured to keep in a state of constant war and to increase its apartheid laws

Justin Trudeau, PM of Canada: You cannot rely on world Zionism to get you out of this morass of tampering with the justice. You cannot forget the plights of Palestinians and let it believe that you are a “human rights” activist

And you start reading biographies of these old crooks (Old money) who “whitened their highway-robbery schemes” decades ago, and how their inheritors legitimately resumed the same crooked behavior:  They were elected to political offices and they finance election campaigns, and fund lobbies for special interest laws.

You feel that there are no serious institutions in Lebanon: No serious statistics about all the various refugees in Lebanon. It all depends on perspective and political short-term exigencies: Palestinian refugee numbers can oscillate between 200,000 to 500,000. Syrian refugees numbers vary from one million to 2 million: a matter of perspective and what the UN wants us to consider as accurate.

The Vatican begins a crucial summit on clergy sexual abuse, on children and on clerical “sisters”. What do you expect? if the “sisters” wash the male priests’ clothes, underwear, cook their meal, tend to their daily comfort… sooner or later she will be asked to share his bed. Allow temporary marriage contracts: old age will resolve chastity.

Many would like to hear: Hezbollah should focus more on financial abuses “fassaad” in Lebanon and much less on state of affairs in the neighboring countries. I say: the two options must go hand in hand: fassaad Loubnan min fassaad al douwal al mou7itat

Tidbits and notes posted on FB and Twitter. Part 184

Note: I take notes of books I read and comment on events and edit sentences that fit my style. I pa attention to researched documentaries and serious links I receive. The page is long and growing like crazy, and the sections I post contains a month-old events that are worth refreshing your memory.

It is not easy to be carted out of exquisite privileges of this bad elite club.  There was this palpable sentiment that “All is legitimate and commendable as long as you are a member of an institution of old traditions and customs

Elite clubs of old money or old aristocracy are the same elite clubs and interchangeable.

The clubs of old money are frequently in a state of boredom and badly need fresh excitements, which can only be satisfied by constant infusion of fresh money

The old money is already codified, legalized, cleaned, and transferred within formal and expected disbursement.

Old clubs have difficulty dipping into the old  and stable money without getting into risky investigations of “where did you get all that money in the first place…”

Mostly, fresh money comes from overseas, from shady governments in developing countries that still rely on their former colonial powers to cover up their oligarchic business dealings

The interesting raw materials that old money invest in are uranium, copper, tin, heavy metals… any material used in technology and aerospace industries, just to keep a military edge

The basic interests of the military and Old Money cannot be dissociated…

The main benefit my dear is that you may revert to your normal self: dealing comfortably with double moral standards…

If you manage to vanquish your miserable state by acting as it is Not your destiny, most other frustrations will be easy to overcome

Reforms are everyday activities. If reforms are Not bonded to a unified recognition of “Who is your existential enemy” like Israel, the frequent minor civil wars will shake down your stability.

Tara2ouni. Zaado al 3alawi lel tarashoh lal Parlement ila 8 millions Cruzero. Ma labakaat ma elha 7add: Kaateb 3adel wa…$100,000 deposit in a special bank account in order to register as a candidate to the election

Ma te7lamou bi esterdaad ayya mablagh min dawleh mfalasseh: lal tarrasho7 aw lal zboutat

Yalla. Al mou7ameen 3endon shoghol bil intikhabaat: Tawkeel le takdeem talabaat al tarasho7

 

The economy did not restart.  The effective rate of unemployed citizens is increasing and converging to the dangerous critical mark of 20%.  That means 12% of the lower middle class citizens are jobless.  The Real Estates bubble is still infected.  Bursting the abscess of property ownership is not for any time soon for good reasons:  most foreclosures are illegal.  The documents of property ownership, amassed in the last three decades by banks and financial institutions, do not exist or are not available.

Paul Krugman, Nobel of economics for 2008, explains. Property rights are badly defined since nobody possesses  adequate documents for ownership.  In most cases, proper documents do not exist:  many loans have been extended by shady financial organizations intent on “showing numbers”.  The mortgages were sold to “funds” ad hoc that dismantled the loans into financial products and supported by mortgage borrowing.

The laws demand that these “funds” obtain the titles of mortgages detailing the obligations of the owners.  These legal formalities were considered to be useless and thus, were neglected by the financial institutions.  Consequently, most current foreclosures are illegal.  Facing this judicial nightmare, the courts are currently relying on sworn testimony of banks with written declarations signed by “robo-signers” or employees having no idea what they are signing on, simply because supervisors ordered them to sign.

The code order from the government to the justice system is: “If a bank declares to own a property then, you have to take their words for granted.”  The problem is that the “funds” cannot produce proper documents of ownership.  The mandatory parties (the financial institutions saved by the government after the crisis) can be sued by investors who bought the titles to ownership; these titles have fractions of their nominal values.

In my previous three articles I discussed reforms for this liberal capitalist democracy.  In this post I want to extend a reasonable way out for the bursting of the Real Estates bubble fiasco that is dooming the system to another financial crisis soon. Since the government has the legitimacy of creating the proper rights for ownership I suggest this proposal.  How about all properties “owned” by banks and financial institutions be considered as rented by the government for a short duration until laws of ownership are revised and proper documents delineated to be needed for property titles like the good old times?

It is advisable that reformed election laws that adequately represent the lower middle class and women be instituted to discussing property laws. If reforms are not to pass “peacefully and democratically”, at least, the next financial crisis will be postponed as the government is renting properties that lack legal documents for titles. People can still purchase these rented properties and State governments can extend the lease to 30 years.

The “Old Money” of the 1% oligarchy, capturing 30% of the nation’s wealth in the capitalist liberal democracy of the USA, knew of the incoming latest financial crash:  their immediate code order after the crisis was “Regaining confidence in our capitalist brand system”.   The code order meant “The common people must have lost hope that our political, social, and economic structure can continue to work as usual.  We must find a tactical scheme that extends hope that “change is very possible in our one century old-established system”.  The people must be worked upon to be re-convinced that our system is the only alternative to producing wealth; that the trickle down policy of the rich reaping the profit first before the scraps are re-distributed is still the most valid structure to contributing to a stable economy.”

Since economic reforms are out of the question and that restarting the economy any time soon is not feasible then,  a quick and dirty smoke screen effect scheme was to be generated.  The oligarchy, aided by the unethical technocrats, devised a diabolic believable smoke screen: “Let us elect a charismatic “Black Citizen” for President of the Republic. At least we will have demonstrated that our liberal democracy can absorb social change”  This scheme hides the untold purpose: The capitalist superstructure behind this ideological liberal democracy will resume functioning and will try to re-establishing security and stability in economic life after the people is exhausted and his savings depleted.

The Obama ticket did the job wonderfully.  Obama spread the requisite hope of  “confidence” in fantastic rhetorical speeches.  Then, Obama was put on short leach in order not to institute dangerous euphoric hopes that could run overboard.  The limited national health care coverage reform passed with the requisite roadblocks:  Reforms should not be taken for granted and done quickly because the people want it.  No other serious reforms were put on the table for discussion and for making decisions:  Just mentioning reasonable financial reforms were too dangerous to start with.

It does not look promising in the near future for any reforms.  The Republicans and the Democrats are sharing the same oligarchic bed and just sending angry smoke screens working on people’s fears of instability and insecurity.

Note:  I do not necessarily include the billionaires of the last two decades in the 1% oligarchy:  They might be more willing to support reasonable reforms to this brand of capitalism.

In 2002, Bush Junior reduced the tax rate on the richest class in America.  The tax rate is due to be reviewed and revised at the end of this year to come up as it was during the Clinton Administration (or 3% tax increase on the revenue):  The richest 1% of the Old Money (hoarding 30% of the GNP) are up in arm and claiming that they are not about to relinquish the rights and privileges they secured for over a century under this capitalist system.   Politicians are empathizing with the plight of those multimillionaires:  The politicians meet regularly with the representatives of the 1% richest (most probably to supplement their puny salary and extensive privileges?)  Those pocketing half a million per year are very vocal:  They say earning half a million does not signify being rich!  That the US government bailed the richest class first with trillion does not count as an argument:  The government is planning to rob them from their legitimate money!  It is probable that the capitalist judicial system would view the claim of the richest as valid legally based on tradition and customs?  Maybe the President should have run under a clear platform of drastic reforms to the capitalist system with clear programs on how to deliver his promises?

You would believe that it is the downtrodden and the millions who lost their jobs and homes who are growling.  There are differences in growling decibel: the growls of the richest with monopoly on power are dangerous, ominous, and have this incoming missile whistling frightening sound.  The US citizens will be hearing loads of crap in the coming two months.

There is another class of new billionaires who made fortune when Ronald Reagan declassified military basic research and application to private enterprises:  Instead of applying the GPS technology to locating Soviet submarines, private enterprises permitted locating the closest espresso cafe.  This additional 1% of new billionaires is more lenient and understanding of the need to supplementing the budget deficit with $700 billion over the next decade to be invested in infrastructure and education. 

Garret Gruener is one of those new billionaires; he currently directs Nanomix (a nanotechnology society) and the capital-risk corporation Alta Partners.  Gruener made fortune participating in the foundation of the research engine Internet Ask.com and created and sold many new enterprises.  Gruener said: “None of my investments were determined by tax rate on revenue.  As usual, the Republicans claim that the “trickle-down” strategy for wealth distribution works best in the capitalist system; which means, the richer are the richest classes the more enterprises are created and the more jobs are available.  The contrary happened in the last decade:  job market was the worst ever, salary stagnated, and wealth inequalities among the classes increased.  There is this inevitable trend:  the periods of the vaster inequality among the classes witness financial crashes such as in 1929 and 2008.  So far, the US economic performance is very poor and joblessness is increasing.  Congress has to understand that more largess in gifts and privileges to the rich classes will drive this capitalist system into a serious impasse.”

There is another emerging giant in the Americas: Brazil.  The capitalist system in Brazil produced 1% of the richest class hoarding more than 30% of the GNP; but the problems will not take effect in this decade for two reasons: First, the economic structure of Brazil did not reach a steady-state; and second, Brazil has vast natural resources to compensate budget deficit in the short-term.  How the richest financial classes make their wealth?

In Brazil, the 1% richest generated 52 of the GNP while the economy based on real work generated just 42%.  When the government of Lula spent over $7 billion on a program to support the 13 million lower middle class families the financial institutions reaped 23 times that amount or 36% of the budget.  How?  The lower middle class (earning over $600 per month; the minimum wage having increased $250) currently hold 80% of the credit cards issued and represents 76% of the consumption of higher life-style.  This class is heavily indebted:  For every dollar received from the program the financial institutions generate $23 in form of interest and other expenses.

Brazil has also to deal with two critical problems:  First, 75% of the population are practically illiterate (they cannot understand an article published in dailies); and second, private land owners of vast areas are powerful force who will not relinquish a custom going as far as 200 years.  Those private agricultural lands are focused on monoculture like sugar cane and whatever multinational agro-corporations demands to be grown.

What the US is currently experiencing will catch up soon with Brazil if the capitalist system is not reformed with the coming President that will facilitate the task of the succeeding President 4 years later.

Reviewing Private properties concept: Can Capitalism be reformed?

This part will discuss ownership of private land properties in capitalist systems and the practical political and legal reforms needed if change is to be effective.  In the first part I wrote:

One:  Capitalism is based on four  foundations:

1. Private property of means of production;

2. free exchange (products, services…);

3.  open free market for commerce; and

4. availability of a vast pool of people willing to work for salary.

The main driving force is that the owner of the means of production (the bank, the partners, the shareholder, or the family)  should earn as much as the total salary that all workers receive.

Consequently, an employee is hired when the owner can generate profit, at least as equal to the total salary of the hired worker.

Two:  The foundations of capitalism have proven not to function except within strong State institutions, which are almost totally controlled by the capitalist classes.

The judicial system obeys laws decreed by parliaments that are dominated by the richest and political “aristocracy” classes, and the executive branch is intrinsically dominated by these classes, directly and indirectly.  This whole political system is called “capitalist democracy” where people have the illusion of electing their representatives for a duration.  After election, people are to behave as spectators:  Any serious disturbances are crushed in the name of Law and Order.

Three:  The previous article described Communist economic systems (Russia and China) and then, capitalism in Western European social-democratic States.

Four:  The one foundation that all economic systems of developed States share is free global trade; which means the liberty to exploiting the developing countries in natural resources and cheap labor.

The developed States are allowed to subsidize their agriculture, but the developing nations are not to do it and they cannot, even if they witness the need to do it .  The developed States are to flood the markets of developing countries with affordable products with no “legal rights” for the developing nations to increasing import taxes in order to safeguarding their own means of productions.

The developed States can find financial resources at low-interest rates but not the developing nations.  In return for blatant exploitation, the developed States agree “voluntarily” to setting aside a small fraction of their GNP to developing the infrastructures in the poorer States; mainly, self-serving their interests to improving and facilitating exploitation and transport of raw materials efficiently.

Five:  All “international” institutions such as World Bank, International Monetary Fund, Commerce Trades are dominated by the US, China, and a few European States; thus, transparency and access to timely information and intelligence are practically denied the developing nations.

Six:  Financial institutions (banks, insurance companies…) are the real owner of means of production in capitalist systems.  They own 30% of the total wealth of a nation and represent only 1% of the population.  This is NOT acceptable.

Fact is, financial institutions generate three times more money than the combined tax collected by the government.  This is NOT acceptable.  Any reforms should first target the level of profit that financial institutions are permitted to generate.  “Effective” interest rates should be lowered accordingly and tougher regulations imposed of these behemoths.

Small community banks with excellent transparency in decision process and lending policies should be the norm.  The current status of financial institutions is generating abnormal profit with no risks whatsoever.  The aristocratic political family class (representing less than 10% of the population and hoarding more than 20% of the nation’s wealth or what is called “Old Money”) is the main beneficiary of the current capitalist system dominated by the financial barons.

Seven:  If capitalism needs salaried people, it must secure the fundamental right to work, a wide range of jobs that satisfy varied opportunity, access to affordable education, safe workplace, universal health coverage, caring for the elderly, and justice for people who worked most of their life for a comfortable retreat.  Has capitalism satisfied the basic needs of its workforce?

Eight:  States should start taxing according to the number of employees hired and net revenue (not based on financial sheet profit):  These two criteria are the most objective representative of net profit and easy to investigate.  This gimmick of taxing on “net profit” is an accounting fraud that is not objective or fair.

Companies relocating their factories or main business for cheaper workers must be taxed according to the original “national wages” of the workers.  Companies substituting workers for robots should be taxed according to the number of workers substituted.  States will be able to subsidize unemployed people until they find jobs and be imaginative enough to opening up newer job opportunities.

Nine:  There is a trend for owners with strong ethics and moral to including employees as shareholders and participating in management decisions:  These companies are doing very well and not suffering from financial crashes.  Institutions and companies for profit are amoral and do not deal in ethical conducts.  Ethics and morality are individual characteristics:  the more such individuals gather in groups to reclaiming fairness and justice in actions the more institutions will be reminded of what is best for society.

Land and private property are the basis for the emergence of the “bourgeois and merchant” classes and which initiated the major leap forward into creating wealth.  This system of private ownership lead to the abolition of feudalism and absolute monarchic powers that were backed by the clergy. The structure of private ownership of land and properties materially weakened nobility and clergy and eventually displaced them.

Private ownership of land and properties are not currently economically essential for capitalist system to function properly:  Enterprises can lease properties and resume their business as usual.  It is the political ideology behind private properties that is the culprit.  Private property ownership remains as a reminder that aristocracy image of power must not vanish in order to retaining political power in “democratic” political system.

Ownership of land and real estates must be legally abolished in order to having a serious chance for political reforms.  Land should be owned by communities and regulated by community councils. Land and real estates should only be leased and never owned by individuals or enterprises.  Why?

First, inheritance of private real estates and money is the main reason for the existence of aristocratic lineage in wealth and politics.  The inheritance mentality encourages sustaining ancient beliefs that the aristocratic class is better fit to rule, guide, and lead simply because this class created the system that perpetuates its interests and egoistic power.

Second, land and properties leasing laws prevent inheritance problems and its successions of hate, suffering, and legal procedures.  Land and real estates should be leased for a period no longer than 30 years and never renewed for any member of the family in order to dissuade political inheritance of images and statuses.  Leases can be extended for three years under particular circumstances; for example, father, mother, and grandparents have the right to die in their property and not experience humiliation and exacerbation at old age.  I guess children will make sure that their folks remain at home and not be sent to specialized rest homes in order to enjoying a free location.

Third, leases on unused properties or uninhabited could be canceled.  Consequently, homes will be properly maintained and the homeless people will have the availability of shelter in unoccupied properties.  Families with crippled or handicapped children will have priority for occupying uninhabited properties.

Fourth, leased land and real estates offer greater opportunities for the newer generations to different life-style in habitat, sustainable energy, and better community life.

Fifth, enterprises may be allowed to renew the lease for specific duration as long as the nature of the business did not change or will not change after the renewal. For example, transforming from a manufacture to real estates development.

The third part of this series of articles will develop on election processes and laws reforms that would shift the odds for the middle class and lower classes to acceded to legislative and executive positions.

Note:  You may read about the Real Estates bubble that won’t burst and is converging to another financial crisis in https://adonis49.wordpress.com/2010/10/24/obama-praying-mantra-next-f-crash-not-on-my-watch/


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April 2020
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