After a year since the outbreak of the financial crisis, it is time to reflect and look for some meaningful parallels in recent history. Another anniversary this autumn, the 20 years since the collapse of communism, can be a point of reflection.
Last year governments' intervention to save the financial system resulted in a setting akin to the communism from late Brezhnev era. In Britain New Labour effectively nationalised the financial system. Ironically, having rejected not that long before Clause IV. The financial establishment has become modern days' commie-style nomenklatura. Their enjoyed privileges and lavish lifestyle is all at taxpayers' expense as they are a direct result of governments’ bailouts, subsidies and guarantees. "Knowing it better"-arrogance of the bankers is very similar to that of communist party apparatchiks of the Brezhnev era. They also proclaimed that it would be a tragedy if they had gone, they had lost their roles and a country "lost talent". This is how at present the financial establishment justifies their continued stratospheric bonuses at taxpayers’ expense and governments do not seem to know what to do about it. It is a farce: in a democratic society the public cannot afford to continue to watch this pathetic and amateurish pantomime. The overall production costs and, hence costs to the audience, the taxpayers, are incredibly high, running into trillions of dollars already.
In the same way as communism could not have been reformed and had to collapse, as this new nomeklatura rules, the financial system cannot be turned around. (No pun intended, Lord Turner.) Turkeys are rather reluctant voters for Christmas. We have already seen attempts of reforms and calls for deeps systemic changes. The Turner Review, the French attempts to curb the bankers' pay and so on. No doubt, we will see more of it. But they can be expected to have a similar effect on the financial world as Kadar's reforms in Hungary or Gorbachev's perestroika and glasnost in Russia had on communism. They should speed up the inevitable collapse. They are paving a way to deep changes.
Time will tell whether these changes will have a Czech's velvet revolution softness or ruthlessness of a Romanian angry mob.
Last year governments' intervention to save the financial system resulted in a setting akin to the communism from late Brezhnev era. In Britain New Labour effectively nationalised the financial system. Ironically, having rejected not that long before Clause IV. The financial establishment has become modern days' commie-style nomenklatura. Their enjoyed privileges and lavish lifestyle is all at taxpayers' expense as they are a direct result of governments’ bailouts, subsidies and guarantees. "Knowing it better"-arrogance of the bankers is very similar to that of communist party apparatchiks of the Brezhnev era. They also proclaimed that it would be a tragedy if they had gone, they had lost their roles and a country "lost talent". This is how at present the financial establishment justifies their continued stratospheric bonuses at taxpayers’ expense and governments do not seem to know what to do about it. It is a farce: in a democratic society the public cannot afford to continue to watch this pathetic and amateurish pantomime. The overall production costs and, hence costs to the audience, the taxpayers, are incredibly high, running into trillions of dollars already.
In the same way as communism could not have been reformed and had to collapse, as this new nomeklatura rules, the financial system cannot be turned around. (No pun intended, Lord Turner.) Turkeys are rather reluctant voters for Christmas. We have already seen attempts of reforms and calls for deeps systemic changes. The Turner Review, the French attempts to curb the bankers' pay and so on. No doubt, we will see more of it. But they can be expected to have a similar effect on the financial world as Kadar's reforms in Hungary or Gorbachev's perestroika and glasnost in Russia had on communism. They should speed up the inevitable collapse. They are paving a way to deep changes.
Time will tell whether these changes will have a Czech's velvet revolution softness or ruthlessness of a Romanian angry mob.
I believe the observations you are making about the "Pyramid" banking system are very accurate, and reflect the position that continues, in contempt of any reasonable individual's desire to see some justice.
ReplyDeleteHowever I feel that you need to add some data into the web site to get it a higher profile, more readers would hopefully get your view into the mainstream. There are various ways of increasing the presence of a web site, but one you could adopt directly is to add some meta tags to the head items in the pages. These are descriptive tags which tell search engines what you are about, using keywords and descriptions to let the world know your content. If you are unsure how to add these tags let me know and I will do my best to assist.
Regards
Brian Hull
Dear Brian
ReplyDeleteThanks for reading my blog. First to the merit:
1. On one side the data provided in the first article "The largest heist in history" proves my main point that it was all pyramid scheme. The pathetic side of this crisis is that its causes are indeed trivial, easily predictable and even more easy to demonstrate now. However on the other side I agree that I should keep beefing up in terms of solid data especially related to the ongoing events. To that extent as a result of my blog publications I have already been invited by a university to work with them on the issues of the current crisis. Hopefully the publications that will come out soon will meet your (rightly) expected high standards.
2. I will appreciate any help with meta tags and please feel free to send myan e-mail how to do it.
Once again thanks and I am looking forward to hearing from you.
Best
Greg
I've sent you an email Greg with the details about adding the tags I mentioned, keep a look out for it, so much spam around these days!
ReplyDeleteCheers
Brian