Skip to main content


Why do we have a crisis? The system, by being liberal, allowed for the condensation of wealth. This went well as long as there was exponential growth and humans also saw their share of the wealth growing. Now, with the saturation, no longer growth of wealth for humans was possible, and actually decline of wealth occurs since the growth of capital has to continue (by definition). Austerity will accelerate this reduction of wealth, and is thus the most-stupid thing one could do. If debt is paid back, money disappears and economy shrinks. The end point will be zero economy, zero money, and a remaining debt. It is not possible to pay back the money borrowed. The money simply does not exist and cannot be printed by the borrowers in a multi-region single-currency economy.
What will be the outcome? If countries are allowed to go bankrupt, there might be a way that economy recovers. If countries are continuing to be bailed-out, the crisis will continue. It will end in the situation that all countries will have to be bailed-out by each-other, even the strong ones. It is not possible that all countries pay back all the debt, even if it were advisable, without printing money by the borrowing countries. If countries are not allowed to go bankrupt, the ‘heritage’, the capital of the citizens of countries, now belonging to the people, will be confiscated and will belong to the capital, with its seat in fiscal paradises. The people will then pay for using this heritage which belonged to them not so long time ago, and will actually pay for it with money that will be borrowed. This is a modern form of slavery, where people posses nothing, effectively not even their own labor power, which is pawned for generations to come. We will be back to a feudal system.
On the long term, if we insist on pure liberalism without boundaries, it is possible that human production and consumption disappear from this planet, to be substituted by something that is fitter in a Darwinistic way. What we need is something that defends the rights and interests of humans and not of the capital, there where all the measures – all politicians and political lobbies – defend the rights of the capital. It is obvious that the political structures have no remorse in putting humans under more fiscal stress, since the people are inflexible and cannot flee the tax burden. The capital, on the other hand, is completely flexible and any attempt to increase the fiscal pressure makes that it flees the country. Again, the Prisoner’s Dilemma makes that all countries increase tax on people and labor, while reducing the tax on capital and money. We could summarize this as saying that the capital has joined forces – has globalized – while the labor and the people are still not united in the eternal class struggle. This imbalance makes that the people every time draw the short straw. And every time the straw gets shorter.
Originally posted at Altexploit


Popular posts from this blog

GST – Impact on Small Industry and the Informal Sector

The Goods and Services Tax (GST), that came into effect on 1st July, 2017, has been lauded as the most comprehensive contemporary reform of Indian indirect taxation. Aimed at creating a common, unified and integrated domestic market, allowing the free flow of goods and services across state lines, GST is supposed to deliver Indian industry and thereby the economy the competitive edge apparently lacking till now.
Reality is however a far cry from the picture painted by government. GST by creating platform a conducive to economies of scale and nullifying regional tariffs, is both conceptually and practically advantageous to big business and detrimental to the informal sector and small businesses.
These groupings, informal and small, though quite different have some degree of overlap. Informal business is overwhelmingly small but not all small businesses are informal. GST’s impact on these groups is quite different both with regard to extent of impact or in terms of results sought.
Small Bu…

Data Governance, FinTech, #Blockchain and Audits

Data Governance and Audit Trail Data Governance specifies the framework for decision rights and accountabilities encouraging desirable behavior in data usage Main aim of Data Governance is to ensure that data asset are overseen in a cohesive and consistent enterprise-wide manner Why is there a need for Data governance?  Evolving regulatory mechanisms and requirements Could integrity of data be trusted? Centralized versus decentralized documentation as regards use, hermeneutics and meaning of data Multiplicity of data silos with exponentially rising data Architecture Information Owner: approving power towards internal + external data transfers + business plans prioritizing data integrity and data governance Data steward: create/maintain/define data access, data mapping and data aggregation rules Application steward: maintain application inventory, validating testing of outbound data and assist master data management Analytics steward: maintain a solutions inventory, reduce redundant solu…

Report release and Panel discussion. “Unfolding Crisis – The Case of Rising NPAs and Sinking Public Accountability” at Constitution Club of India in New Delhi at 3:00 p.m. on 14th September, 2016

Public Finance Public Accountability Collective (PFPAC)
cordially invites you to attend the formal release of its first publication 
Unfolding Crisis – The Case of Rising NPAs and Sinking Public Accountability” 
Constitution Club of India in New Delhi at 3:00 p.m. on 14th September, 2016

Additionally, PFPAC will be organising a panel discussion to analyse the intricacies of Non-Performing Assets (NPAs) with a panel consisting of notable people from across the social, political, economic and financial spectrum:
•Mr. C.H. Venkatachalam – General Secretary of the All India Bank Employees Association (AIBEA)
•Dr. C.P. Chandrasekhar – Professor at the Centre for Economic Studies and Planning, School of Social Sciences, Jawaharlal Nehru University
•Dr. Indira Rajaraman – Former Member of the 13th Finance Commission; Former Professor at Indian Institute of Management (Bangalore); and Former Member of Central Board of Directors, Reserve Bank of India
•Dr. Mohan Guruswamy –Chairman, Centre for Pol…