Category Archives: society

Blazing POTUS: Barrack Obama’s First Term with thanks to Mel Brooks

I was watching Mel Brooks’ Blazing Saddles and It was amazing how many of the jokes worked in an Obama, Tea Party, GOP context. I hope that you are amused.


Meanwhile at GOP Headquarters

The President gathered Support from other minorities

The President’s opponents started to get somewhat desperate

Serious blogs about banking fraud and Ayn Rand’s Objectivism coming soon.

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Dali’s Magic Cheque Book: America’s Economic Dilemma

Dali’s Magic Cheque Book

Spanish surrealist painter Salvador Dali had a magic cheque book, no matter how much he spent, his cheques were hardly ever cashed, he had made a realisation that was to make him the most generous host and dinner companion in the whole of Spain. He would regularly wine and dine his friends and retinue in the finest restaurants, eat the very best food, drink the very best wines and cognacs and seldom it would cost him a single penny. After a lavish evening, Dali would call over maître d’, thank him for the excellent service and ask him for the bill, when the bill was presented, Dali would take out his oversized cheque book, write out the cheque for the cost of the meal plus a generous gratuity and sign the cheque, but before handing the cheque over Dali would turn it over and on the back make a pen and ink sketch, unsurprisingly Dali’s cheques were seldom cashed, however much the extravagant dining had cost the value of a Salvador Dali sketch was so much greater. For the sake of a couple of minutes of doodling Dali and his friends were able to dine for free and the restaurateurs were delighted they had just be handed something of great value by one of the most famous artist alive. Sometimes, some things are worth a great deal more than their face value.

The Power Of The United States Dollar

In the years that followed the end of the Second World War, the United States became the world’s dominant economy, replacing the United Kingdom and its diminishing empire. Along with this economic dominance came the gradual adoption of the US Dollar as the world’s prime reserve currency, this meant that the US Dollar became the principle currency for international transactions and therefore nation states, international banks and companies operating globally needed to keep large reserves of US Dollars. In 1971 OPEC (Organization of the Petroleum Exporting Countries) adopted the US Dollar for all crude oil transactions, this for the first time in history this made a currency, the US Dollar, the de-facto official world reserve currency.

With the adoption of the US Dollar, the United States, it’s banks and corporations were placed in a unique position, because of the need for nation states, banks and companies to hold reserves of US Dollars it effectively gave them a real world advantage. The United States Federal Reserve was able to keep the value of the US Dollar relatively stable on international exchanges whilst keeping domestic US interests rates and US domestic inflation relatively low. Because of its importance as the world’s primary reserve currency the US was effectively able to manage the world economy to its own advantage, the effective costs of borrowing in the United States was modest compared to the rest of the world, this allowed the creation of an affluent consumer led economy with cheap and easily available credit for US consumers and US business. It also allowed the United States government to spend and increase the national debt whilst paying very modest yields on government bonds and gilts. This unique position allowed the United States to become the world’s first hyper power and sustain not only the world’s largest military but also be the major player in a world economy that was becoming more and more integrated.

The Burden Of Debt

In absolute fairness to all United States presidential administrations both Republican and Democrat, the United States federal deficit and the United States national debt were relatively modest until the election of George W. Bush in 2000. Even under Ronald Reagan who publicly stated he wished that he had done more to contain federal spending, the United States debt and deficit was similar to that of other industrialised nations and was in no way problematic. It was only with election of George W. Bush that spending and debt started to become a problem, Bush inherited a budget surplus in his inaugural year of 2001, he immediately proceeded to cut taxes, a modest tax cut for middle class Americans and huge tax cuts for the rich and corporations. After the attacks of September 11th 2001, his administration embarked upon two wars firstly in Afghanistan in 2001 and in Iraq in 2003. Rather than fund these wars from current fiscal year spending which would have increased the deficit, the cost of these wars was added directly to the national debt. With the banking crisis of 2008 and the real fear of a complete collapse of the world financial and banking system the US government massively increased the national debt again to bail out and reinforce the banking and financial system.

After winning the 2008 presidential election Barack Obama was faced with a mounting deficit, a spiralling national debt and an economy in recession he took the decision quite rightly to slow the rate of spending increases whilst still managing to stimulate the economy, however he has been unable to raise taxation on corporations and the rich because of the political rhetoric of the Republican controlled House and the use of the filibuster in the Senate. This has lead to a slight increase in the US federal deficit under the Obama administration, but the claims made by his political opponents are without substance. The US national debt now stands at 103% of Gross Domestic Product and without raises in taxation on those that can afford to pay the United States even with its status holding the world’s principle reserve currency will face steep rises in interest rates if the situation is not addressed. It is only via taxation that this problem can be solved, cutting federal spending would almost certainly force the United States into yet another recession.

Absolute Power Corrupts Absolutely”

From 1987 onwards Alan Greenspan in his role as Chairman of the US Federal Reserve deregulated the US financial markets, effectively ending the oversight of US financial institutions by regulators. Greenspan a devotee of Ayn Rand and her Objectivist philosophy believed that financial markets would become self regulating and this absence of regulation would lead to stable and continuing growth, however Greenspan appears to have underestimated the sheer criminal greed of those involved in the banking and finance industry. It isn’t just outright crooks like Bernie Madoff that stole peoples money, many major banks, insurance companies and hedge funds produced financial products that they happily sold into the market that were little more than junk and the credit referencing agencies gave them triple A ratings. How could system exist where ratings agencies that rated products were paid to rate those products by the very institutions that were producing them? This was absolute power corrupting absolutely and it very nearly led to the collapse of the entire financial system.

This Coming Election

The rise of The Tea Party in 2009-10 and their influence on the Republican Party have effectively drawn the battle lines for the forthcoming presidential election, the Republican party are now in a position where they are unable to raise taxation and therefore forced to to make massive cuts to US public spending in order to address the deficit and national debt, be in no doubt a Republican administration would cause the biggest recession in world history and even further widened of the gap between rich and poor.

I have checked and rechecked every statement I have made in this article because I want my friends and those who may just casually read to realise exactly what is at stake over the next few months. The US can get back to the days of cheap credit and long term investment, the US Dollar can remain the world’s prime reserve currency if steps are taken to regulate effectively financial markets and realistic taxation is used to address America’s debt crisis.

Please in November vote for the future of your wonderful nation and vote against self interest and greed.

How The Rich Become Super-Rich

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So Daddy did well in business and left you a couple of hundred million dollars, but rather than lie on beach earning five percent you really fancy joining the ranks of the billionaire super-rich, well this is how you do it, it’s risk free, totally safe and guaranteed to make you super wealthy. Follow my step by guide and you too can be enjoying the billionaire lifestyle, be hailed as a hero of capitalism and a real master of the universe.

  • Set up an holding company through which to start your enterprise, we shall call ours Rand Capital Investments, you might want to register it in a tax haven such as the Caymen Islands, Jersey, Switzerland or Monaco.
  • Transfer your personal assets to Rand Capital Investments, you will now be able to use those assets to leverage finance for a company purchase, if you have assets of $200 million you will be able to raise up to $2 billion in capital from the banks. Unlike ordinary people in business you wont be struggling to raise finance, you are already rich.
  • Find a company that is asset rich but struggling for either cash flow, turnover or market share and buy it using your $2 billion of leveraged capital.
  • Transfer the debt taken on in the purchase from Rand Capital Investments to the company you’ve purchased, clearing Rand Capital Investments debts. Charge the company a large consultancy fee for arranging the transfer of debt. This will not only make you money but will reduce the companies tax liability. And you still own the company!
  • Sell off the profitable divisions of the company, reducing the company’s debts and improving the balance sheet, for each sale charge the company a large consultancy fee. If you use the revenue from the sell off to reduce company debt this avoids the need to pay tax.
  • Now you are left with just loss making divisions it is time to sell the remainder of the company, the best buyer is obviously the company’s own pension scheme who will want to buy the company to try and save their own jobs.

Congratulations, you’ve turned your $200 million into $2 billion and because you had the foresight to register Rand Capital Investments in a tax haven you don’t have to pay tax.

Sadly this is the way that capitalism works, it is risk free, your strategy doesn’t depend on being able to turn a company around and create new business, it is simply about making your money work for you, it is 100% legal moreover it is openly encouraged by American, Australian, European and British governments.

That’s Capitalism Folks!

 

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Dr Goebbels Would Be So Proud



This insidious propaganda campaign against disabled people is starting to remind me of the work Joseph Goebbels.
The Daily Mail and The Daily Express seem intent on creating a climate of prejudice against disabled people. There once was a very British saying, it was kind of thing that the small c conservative readers of the Mail and the Express used to believe, “There for the grace of god go I”, now it would appear that the Mail and the Express want their readers to look upon anyone on a disability scooter user, a blue badge holder (disabled parking permit) or maybe just someone using a walking stick and think to themselves there goes a parasite, someone defrauding the state. Since 2010 physical assaults on disabled people have increased by some 22% and one only needs to stand in a bus queue or in a shopping precinct to hear the verbal abuse carelessly and remorselessly thrown at the disabled people. This kind of prejudice was something that I believed Britain had left behind two or three decades ago.

The simple truth no one actually knows just how many fraudulent benefit claims there actually are, NO ONE! The statistics thrown around by the Daily Mail and Daily Express simply have no evidential basis whatsoever. Yes there are benefits cheats I don’t think anyone denies that, however, what this campaign is masking is that government is systematically changing the scope of disability benefits to exclude people that they have determined are capable of work, this determination is not based upon a medically determined set of criteria but upon a political and economic arbitrary line drawn to exclude as many people as possible, it is in fact a piece of social engineering. This government for reasons of philosophy have chosen to attack a group in our society and attempt to blame them for what they describe as the “spiralling costs of benefits”.

If they were actually serious about doing something about the costs of benefits and inherent fraud they would examine the housing benefits in its entirety. During the 1980’s “Right To Buy Scheme” millions of properties were transferred from local authorities to private ownership arguably a good thing in itself, however, the local authority housing was not replenished and the money from the sale of council homes was used to reduce the subsidy that central government paid to local authorities forcing those who would have qualified for social housing into the private rented sector. In the early 90’s local authorities control over “fair rents” was removed by central government and the role of inspection by council housing officer greatly diminished. This was probably the largest privatisation undertaken by the Thatcher and Major governments and it took place by stealth. This seemed pretty uncontroversial for many years state money in the form of housing benefit was transferred to private landlords this lead to mass expansion of the “Buy to Let” sector which in turn aided economic growth and wealth creation. Therefore there was no need or incentive for the Labour governments to change tack or reform this system, property appeared to be making people wealthy and no one wanted restrict personal entrepreneurship.

With the Coalition agreement of 2010 came this apparent need to reduce the deficit, this again was completely arbitrary and totally political, if the previous Labour government could be blamed for a spiralling deficit then cuts could be made without too much political pain. But the inherent problem that the Coalition faced was that the Conservative Party and to lesser extent the Liberal Democrats were wedded to private sector housing. So here is the real reason we have this systematic attack on the disabled. Proportionately disability benefits do not cost a great deal in terms of overall government spending, however when housing benefits are included they create what can best described as huge black hole, benefits are linked to inflation, housing costs are not. During a time of economic austerity the one cost that appears to be constantly rising is rent, there are no restrictions on what landlords can charge and no mechanism to determine if those rents are fair. So rather than tackle the actual problem this government is attempting to remove benefits from those that need them and by using a rather right-wing nasty element of the press blame them for the mess in the first place rather than the policies and philosophies that created actual problem. This scapegoating of disabled people makes the government the plan obvious, remove public sympathy and then remove the right to benefits, the problem is this doesn’t make the sick, well or the disabled, able bodied.

Disabled and sick people are not responsible for the state of the United Kingdom and their scapegoating is little more than the failure of government to actually tackle the real problem. Iain Duncan Smith is totally driven by a neo-liberal philosophy which is not only dangerous but also potentially more costly. It will be the NHS that will eventually end up picking up the costs of this stupid and ill-conceived policy and the criminal justice system that is forced to deal with the damage of bigotry created by language used. Shame on you and shame on your friends in the press.

I had intended my first post to be something a little more universal, however, yesterday a friend of mine posted the photograph on facebook and I felt this really need to be addressed. With sincere thanks to Ebony Dawn Marsh.

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