Corrupt economics: Destroying Value ... and Communities

The Government is currently promoting the fact that they are shifting their focus onto exports, manufacturing (cf finance) and growth (i.e. job creation).

However this once again appears to be all spin and no substance!

Our current trade deficit is at its worst level for seven years, manufacturing is shrinking (not increasing), and recent figures show that the vast majority of jobs currently being created are in finance (over 60%) - not manufacturing (less than 3%)! 

This Government tries to tell us the financial sector makes up a small part (less than 10%) of the total economy, which is a complete distortion ... this small figure does relate to the manufacturing sector, but not the financial sector ... and the job creation figures provide a truer picture of reality ...

Corrupt 'free market capitalism', is systematically backing/ promoting 'money for nothing' scams ... over 'real' hard-working businesses desperately trying to positively contribute to society and add real value to people's lives ..

It is well known and well documented (e.g. on this blog) that bankers (and finance companies in general) do not add any real value to society ... in fact they're actually systematically destroying value ... hence they need to be reigned in. 

In the future 'adding real value' needs to be positively backed/promoted ... and destroying value needs to be made illegal or, as a minimum, taxed very heavily to replace/cover any value it may destroy (i.e. just like other forms of gambling, tobacco, alcohol etc currently are). This Government is vehemently resisting any financial transaction tax ... which would be a good start to achieving this goal ... and why? ... well, they are 'in the pockets of the bankers', are also threatened by them (e.g. threats to move their centres overseas if they don't like what the Government is doing) ... and they allow this corrupt banking system to counterfeit money and to keep the 'means of production' (i.e. money/capital) mostly in the hands of themselves (over 60% of all new jobs/investment) ... so they can create and exploit yet more 'money for nothing' scams (i.e. 'financial engineering')!

They are systematically stealing taxpayers money, plundering and destroying communities, and stealing people's future ... by burdening communities with debt slavery for decades to come. 

Capitalism is better described as the 'economics of exploitation' ... and this is not being tackled because we also have a mockery of a democracy.

As Aristotle once said ...

"Democracy is when the indigent, and not the men of property, are the rulers"

... and ...  

"In a democracy the poor will have more power than the rich, because there are more of them, and the will of the majority is supreme" ... 

Destruction of the NHS ... and 'a mockery of democracy'

The current Government are hell-bent on destroying the NHS ... a NATIONAL health service set up in 1948 by Aneurin Bevan and created out of the ideal that good healthcare should be available to all, regardless of any wealth, and based upon three core principles:

* that it meet the needs of everyone
* that it be free at the point of delivery
* that it be based on clinical need, not ability to pay.

Prior to gaining office the Conservative party deliberately kept secret their radical plans for the NHS from the people of this country. Their plans for the NHS were cooked up by Lansley over many years in opposition, and yet they failed to tell the people anything about their plans prior to the election (as no-one would have trusted them, and no-one would have voted for them)! 

Worse still, the Conservatives continually lied and made use of copious amounts of spin (nb David Cameron is only trained in PR) to persuade the country that they could be trusted with the NHS and that the "NHS would be safe in their hands". What irony and hypocrisy. The NHS reforms introduced by this manipulative Government therefore had no mandate from the electorate, and on entering Government they have consistently (and deliberately) circumvented any democratic right/process. In summary, they have made a 'mockery of democracy'.

And what about their continual spin ... that the NHS is 'Safe in their Hands?' What a joke! On being told by the Information Commissioner (and the High Court) to publish the risk register associated with these reforms, the Government have steadfastly refused to do so, whilst continuing to rail-road the reforms through.

The reforms are highly toxic and designed to deliberately destroy the very foundations/principles of the NHS. They open the doors to mass profiteering, by commissioning groups as well as private providers, which will taking money out of the system that would have otherwise been spent on healthcare. 

They will also destroy the 'doctor-patient' relationship and any trust patients have in their doctors, due to clear conflicts of interest (made clear by the Royal College of GP's) that have not been addressed! Doctors will now have to balance any diagnostic decision (and any decisions about subsequent treatment) with reduced budgets and a new found ability to profiteer (e.g. from withholding/limiting any diagnoses/care provided). The reforms deliberately try to bribe GP's to ration healthcare (e.g. by offering them bonuses for doing so). Yet despite this, the vast majority of GP's directly oppose the bill and want to see it dropped, some out of 'principle', and some from the fact that they know they are going to effectively become a scapegoat and the focus of people's anger (as people realise that care is effectively being withheld by them, unless they can afford to pay). 

Indeed, this Government has been careful to deflect any blame on the future lack of healthcare provision away from themselves and onto local groups (a divide and rule strategy). GP's are clearly the main target but the Government have also effectively removed the world NATIONAL from the term 'National Health Service', as there will no longer be a national standard for the type, or level, of care offered across the country (with no-one taking overall responsibility for this). This will result in a "post code lottery" health service; destroying the concept/principles of a NATIONAL health service ... And if anyone thinks they'll be able to simply move doctors if they're not happy, think again, as the Government have not allowed this (you will effectively have to move house to change your GP surgery - and even then, it will still depend on you being able to find a different, and more caring, commissioning group)!

If offered treatment, patients are also seeing waiting times dramatically increase, with Government officials desperately trying to remove any remaining waiting time measures/targets (n.b. people are also seeing appointments offered, but repeatedly cancelled too). Increasing waiting times are also a crucial (but toxic and hidden) ingredient of these reforms, as they are needed to pressurize people into paying for health insurance and/or paying to queue jump (NB they will now be able to jump the queue, as NHS hospitals will be able to allocate up to 49% of their time/resources to those who pay, and those willing/able to pay will be treated first, by exactly the same NHS doctors and nurses ... which in turn will make waiting lists/times even longer).

This destroys the very foundations of the NHS, in that healthcare should be "based on clinical need and not the ability to pay". With these reforms this will clearly not be the case in the future. Indeed, it is noticeable that Government ministers are always careful not to use this particular phrase when defending their reforms, and only say the NHS is about care still being 'free at the point of delivery'.

With the destruction of the core principles of the NHS, what we are seeing is the dismantling of the NHS ... and a list of 'the guilty', who should be charged with 'crimes against humanity', can be found below, along with their respective roles:

David Cameron, for his lies, deceit and hypocrisy. Andrew Lansley, for cooking up this immoral plan to destroy the NHS. Both parties are guilty of pressing on regardless, ignoring fundamental issues/concerns raised by every healthcare professional group, and systematically manipulating/ circumventing democratic processes (e.g. publication of the risk register).

 

Nick Clegg, for allowing these reforms to progress at all (with no electoral mandate) and forcing Liberal Democrats to ignore all concerns/principles in order to vote for these reforms. Shirley Williams for selling her soul to help Clegg and switching from 'protector' to 'cheerleader' (NB Lord Owen, a previous Democrat along-side Shirley Williams, is still desperately trying to stop the bill without the publication of the risk register demanded by the Courts). 

 

Ed Miliband for 'throwing a sickie' and not attending a rally against NHS reforms, so he could accept a VIP invitation to watch Hull City play football instead.

Andy Burnham (and John Healey), for failing to articulate a clear (and proven) alternative to these reforms ... based on engaging and empowering the workforce to radically improve the service ... and in the process making the NHS more seamless and efficient (i.e. 'lean') ... n.b. the complete opposite of this Government's approach, which focuses on fragmenting (and destroying) the service, ignoring any advice and/ or concerns of healthcare professionals, and handing over the money to those seeking pure profit (e.g. McKinsey's, commissioning groups, insurance companies and private providers), and not those on the front-line who are passionate about the NHS and want to create better healthcare for all (i.e. the healthcare professionals).

and finally, Tony Blair and Gordon Brown, for ditching socialism (in favour of crony capitalism, self-interest and 'spin') and for abandoning all the 'ordinary', hard working, people they were supposed to represent. Their failures (e.g. bank deregulation, bank bailouts and the subsequent pressure to slash public services to pay back all the resulting debt) in effect created an 'open door' for the Conservatives to step into, impose a slash and burn strategy, and blame the Labour party for having to do it! 

RIP NHS ... a casualty of self-interest and greed, and a lack of real democracy ...

and why ... well this is down to a combination of ignorance and apathy.

RIP Britain ... and watch out for impending riots.

Aristotle once said ...

"Democracy is when the indigent, and not the men of property, are the rulers"

"In a democracy the poor will have more power than the rich, because there are more of them, and the will of the majority is supreme"

Those currently in power are desperately trying to ensure that this will never happen ... and indeed the opposite remains true ... by wielding all the power at their disposal (including the deployment of paramilitary forces armed with water cannons, tear gas, tasers and plastic bullets) ... and the answer to this ... mass protest ... withdrawal of labour ... and the use of 21st century technology.

Ignorance is not bliss ... and democracy is a long way off (e.g. look at the NHS reforms)!

Scientists have suggested the theory of democracy has a key flaw - that most of the public are just too stupid to pick the 'right candidate'!

According to the theory, the democratic process relies on the assumption that a majority of citizens recognise the best political candidate, or best policy idea, when they see it.

However research led by Professor David Dunning, a psychologist at Cornell University, recently showed incompetent people are inherently unable to judge the competence of other people, or the quality of those people's ideas.

This research is misleading however, and for numerous reasons. 

First of all it assumes the majority of people are ignorant/incompetent, which they are not. A good dose of common sense, and a greater sense of community/purpose, can go a long way ... but this has been steadily displaced by a mix of self-interest and greed (modelled by current 'leaders').

Secondly, the research ignores the deep and corrosive influence of all those with vested interests who quietly wield power; from politicians, media tycoons, lobby groups, big business, bankers and landowners. Put these into the mix too and it becomes quickly clear that the vast majority of messages people currently receive are hardly unbiased (e.g. remember 'dangerous climate change' and 'weapons of mass destruction')!

Thirdly, the research assumes that what we now have can be called democracy! Most people in the UK are indeed ignorant/apathetic to how little influence their 'democratic system' actually affords them! People get to have 'a say' ... but only once every five years, and even then, around only 2% of votes actually count/make a difference as to who gains power (i.e. 'swing votes' in marginal constituencies).

Aristotle once said ...

"Democracy is when the indigent, and not the men of property, are the rulers"

"In a democracy the poor will have more power than the rich, because there are more of them, and the will of the majority is supreme"

Given the above, and the self-interest and greed (poweromics) being shown by those wielding power to stop this, it's clear that real democracy is still a long way off ... and will only arise if/when more people stand up for democracy ... 

Take a look at the planned changes to the NHS for instance. The Government are still trying to ignore all the opposition to its NHS bill (n.b. a bill that no-one voted for), from patient groups as well as all the healthcare experts!

The Government is attempting a 'divide and rule' strategy ... and deploying as much misleading PR/spin as it can. It also plans to deflect any blame from increased NHS rationing away from themselves ... and onto local GPs/consortium groups (and are trying desperately to bribe GP's to accept this ... with lots of cash)!

Their 'localism strategy' is being used as a smoke-screen for deflecting blame, to 'divide and rule' and to effectively remove the word 'NATIONAL' out of the National Health Service (NHS) ... creating a complete post code lottery for healthcare in the UK.

Scrapping waiting targets for treatments is also a way to force more people to pay in order to 'queue jump' ... as they will be treated by exactly the same NHS doctors and nurses (n.b. the health bill is seeking to ration healthcare provided free on the NHS, and at the same time allow existing NHS hospitals to use up to 49% of this 'freed up'/'spare capacity' to treat 'private patients')! 

People need to wake up and 'smell the coffee', and stand up and be counted ... or they will lose a vital/cherished service, a National Health Service set up to provide healthcare for all based on clinical need ... and not the ability to pay.

People: Do politicians represent them, police protect them and the press inform them ...?

This morning David Cameron has tried to come out fighting ... but 'boxed in' ... he has had to resort to using a little bit of honesty. Firstly he provided details on the two public inquiries being planned. 

The first, led by a judge, will get to the bottom of the specific revelations and allegations seen ... e.g. the illegal and utterly unacceptable practices taking place (e.g. phone hacking and illegal payments to corrupt police officers) ... to find out what happened ... and how it was allowed to happen.  This will include finding out why the first police investigation failed so abysmally ... what exactly was going on at the News of the World and what was going on at other newspapers, with this inquiry starting as soon as all police/criminal investigations are complete.

The second inquiry involves action associated with learning the wider lessons for the future of the press, conducted by a credible panel of figures drawn from a range of different backgrounds and who command the full support, respect and above all confidence of the public. They should be truly independent, without any motive but to seek the truth and clean up the press. In doing so they will look at the culture, the practices and the ethics of the British press, and in particular they should look at how our newspapers are regulated and make recommendations for the future (NB Cameron made clear self regulation and the Press Complaints Commission had failed).

He tried to limit the damage of his close personal relationships with Coulson and Brooks, but his final comments were the most damaging/telling of all ...

"But there is, as I said at the outset, a third question that this scandal asks of us, and it is not an easy one for me to answer. Because as we’re considering the devastating revelations of the past few days, it is no good just pointing the finger at this individual journalist, or that individual newspaper.

It’s no good, actually, just criticising the police. The truth is, we have all been in this together – the press, politicians and leaders of all parties – and yes, that includes me. We have not gripped this issue. 

During the last government, a police investigation was undertaken, it was inadequate and not enough was done. There were reports from the Information Commissioner and they went unheeded. There were Select Committee reports on phone hacking and there was no follow-up. Throughout all this, all the warnings, all the concern, the government at the time did nothing. And frankly, neither did the Opposition.

To be fair, it is difficult for politicians to call for more regulation of the media, because if we do so, we’re accused of wanting to stifle a free press or even free speech. But the deeper truth is this: there is a less noble reason. Because party leaders were so keen to win the support of newspapers we turned a blind eye to the need to sort this issue, get on top of the bad practices, to change the way our newspapers are regulated.

It’s a bit like MPs’ expenses. The people in power knew things weren’t right. But they didn’t do enough quickly enough – until the full mess of the situation was revealed.

Now, when the scandal hits and the truth is plain for everyone to see there are two choices. You can down-play it and deny the problem is deep – or you can accept the seriousness of the situation and deal with it. I want to deal with it.

These inquiries give us a chance for a fresh start and I want us to take it. Look, it’s healthy that politicians and journalists speak to each other; know each other. Democracy is government by explanation and we need the media to explain what we’re trying to do. But this is a wake-up call.

Over the decades, on the watch of both Labour leaders and Conservative leaders, politicians and the press have spent time courting support, not confronting the problems.

Well: it’s on my watch that the music has stopped. And I’m saying, loud and clear – things have got to change. The relationship needs to be different in the future. 

I’m not going to pretend that there’s some nirvana of two separate worlds, relating to each other on the basis of total transparency and ethical perfection. That's not real life.

But we can do a hell of a lot better than we’ve done so far. Because as this scandal shows, while it’s vital that a free press can tell truth to power it is equally important that those in power can tell truth to the press.

For people watching this scandal unfold, there is something disturbing about what they see. Just think of who they put their trust in. The police to protect them. The politicians to represent them. The press to inform them.

All of them have let them down.

So when the inquiries are over, the questions have been asked, and the truth found out I want a police that has proved itself beyond reproach, a political system that people feel is on their side and a press that is yes, free and rigorous; that investigates and entertains; that holds those in power to account and occasionally – yes, even regularly – drives them mad.

But, in the end, is a free press that is also clean and trustworthy. That is what people want. That is what I want. And I will not rest until we get it".

Indeed so ... but it's the collusion, corruption, and the blatant abuse/misuse of Power that is now clear for all to see ... not just with the Politicians, Media and Police ... but with the banks, corporate leaders, landowners and the whole judiciary too. e.g. if you started photocopying bank notes (and lending it out at interest) you'd be locked up ... yet this is what banks legally do everyday!

Such blatant abuses of Power are not going to go away ... not until more people wake up and smell the coffee ... and do something about it that is!

Aristotle famously said:

"Democracy is when the indigent, and not the men of property, are the rulers"

"In a democracy the poor will have more power than the rich, because there are more of them, and the will of the majority is supreme"

"The trade of the petty usurer is hated with most reason: it makes a profit from currency itself, instead of making it from the process which currency was meant to serve. Their common characteristic is obviously their sordid avarice"

"No notice is taken of a little evil, but when it increases it strikes the eye"

How 'Good' is Britain?

Quoting Aristotle, and following on from my last post, the following question is now partially answered ...

Aristotle said ...  "The trade of the petty usurer is hated with most reason: it makes a profit from currency itself, instead of making it from the process which currency was meant to serve. Their common characteristic is obviously their sordid avarice*"

And this week Robert Peston, one of the few in the BBC bold enough to question what is going on, this week highlighted the "Valueless Banking Boom", following figures released by the Bank of International Settlement, which show global foreign exchange turnover rose 20% to $4trn per day on average (yes, that's each single day) in April 2010 compared with April 2007.

"A sum equivalent to the entire output of the global economy is traded around once a fortnight on currency markets ... and what's more, London's portion of this business has increased even faster, by 25%, so UK based banks' share of forex business is a market-leading 37%.

As for over-the-counter interest rate derivatives (transactions that are largely bets on the direction of interest rates), these rose 24% globally to $2.1 trn ... and Britain's share of these trades was a striking 46%, up from 44% in 2007.

Many might well dispute that the great banking meltdown of 2008 happened because of this explosive growth in financial trading - but the trading certainly didn't prevent the crash.  It is clear that bankers are being allowed to continue to gamble unabated, without the fundamental problem being addressed (i.e. bankers' gambling being separated completely from ordinary citizens' savings).

And there is a massive disconnect between a global economy that has less than doubled in size over 12 years and - on the other hand - OTC derivative transactions that have increased eight fold while foreign exchange transactions have almost trebled in value. What's more, as I've pointed out before, the global economy was growing quite as fast in the 1960s when much of this financial business barely existed.  

So those (like me) who can't see the point of all these financial trades may have a point - unless, that is, you believe the enrichment of financial traders and hedge fund managers is a social good in itself.

Which is why, some would say, it's slightly odd that when no less an authority than the chairman of the Financial Services Authority, Lord Turner, questions the social utility of much activity in financial markets, and also suggests that it might be no bad thing to levy a tiny Tobin tax on all this frenetic trading in electrons, well it's curious that the chancellor of the exchequer (who could use a bob or two) doesn't lick his chops and demand a bit of that."

Well it's clear that immorality/corruption runs deep, and at present with whatever 'colour' of Government is in Power (n.b. ironically the last Government arguably lead the way to this path of immorality - 'led' by politicians who hid behind supposed religious beliefs), and none of them are going to challenge anything that serves their own vested interests ... even when it's clearly at the expense of everyone elses'. 

From a society (and moral point) of view, separating gambling from traditional banking is a 'no-brainer', but current leaders continue to choose not to do this.  From a society and moral point of view, restricting (and taxing) trading/gambling, and investing resources into activities that add real value (the reason for currency) is also paramount, but current leaders choose not to do this either.  Clearly the hidden hand of 'power' exerts major influence on those seen to be in 'power' (e.g. Politicians) and only truly honorable, respectful, courageous and strong 'leaders' will resist this and do what is right ... and the current set of Politicians are rapidly proving they have none of these qualities (particularly the first, and arguably the most important, two).

My previous reference to the article below explains/expands on this point ...

"Introducing tighter regulations for bankers or politicians does not raise their level of maturity, morality or their ethics, it just limits what they can get away with. No, it is the type of people, the Ethnocentrics themselves, that have to go. Worldcentric people by definition and by their nature would not have abused the old regulations, let alone need new ones. Anyone below Worldcentric on the “chart” should not be selected or elected into positions of leadership in politics or big corporations, not just banks. Fewer people would fit the bill and that would limit our choice, and so it should.

The second of the two issues was the failure of commentators to seriously question the capitalist economic system that has proved to be so fragile and unjust. It has brought wealth to half the world while the rest starve; it thrives on excess consumption and the inevitable emissions, and it seriously retards the evolutionary development of individuals and cultures. Bankers and politicians alike strive to prop up the old failing system which they abused, because they know no better.

However there is also a groundswell of more conscious or ‘worldcentric’ people who will no longer tolerate the old order and they will become ever more vociferous until the ethnocentric majority of politicians are discredited, ousted and replaced. Some commentators will reread if not resurrect Karl Marx, but the way is forward not backwards. A new economic order is essential, one that puts people and planet before profit".

To answer the question we need to go back to Aristotle ... noting we are recognised as the nation leading the way in profiteering from currency, instead of making it from the process which currency was meant to serve. 

The immorality of such action is clear, and those who conspire to allow this to happen are not 'Good People' and need to be challenged ... and it will take 'Good People' to join together to do this**

... so "How Good is Britain?" ... well the evidence suggests not good I'm afraid ... and in the future ... well we shall see (i.e. will "Good" people do nothing, and be complicit in evil). 

And as I also referred to in my last post, Aristotle referred to the 'Evil of Ignorance' ... IMHO Apathy (i.e. Type 2 Ignoromics***) can be referred to as 'evil' (as it is both complicit with and an accessory to evil), but Ignorance (Type 1 Ignoromics***) is arguably less so (as it is neither complicit with nor an accessory to).

* Avarice - Extreme greed for wealth or material gain.

** 'For evil to flourish, all it needs is for good men to do nothing' [Edmund Burke 1729 - 1797]

*** Ignoromics = People are either effectively ignorant of the situation (Type 1 - Ignorance) or not prepared to take responsibility to make sure it changes for the better (Type 2 - Apathy).

Aristotle: The 'evil of ignorance'

For some time the wise and learned have reflected on the use, and misuse of power, and the purpose and values within our society ...

For instance here's just a few of the things Aristotle had to say ...

"Democracy is when the indigent, and not the men of property, are the rulers"

"In a democracy the poor will have more power than the rich, because there are more of them, and the will of the majority is supreme"

"The trade of the petty usurer is hated with most reason: it makes a profit from currency itself, instead of making it from the process which currency was meant to serve. Their common characteristic is obviously their sordid avarice*"

"Poverty is the parent of revolution and crime"

"No notice is taken of a little evil, but when it increases it strikes the eye"

"It is the mark of an educated mind to be able to entertain a thought without accepting it"

"All persons ought to endeavor to follow what is right, and not what is established"

"The only good is knowledge and the only evil is ignorance"

"You will never do anything in this world without courage. It is the greatest quality of the mind next to honor"

Insights (and challenges) arguably just as, if not more, relevant today ... which capture in simple words the type of Poweromics we still face today, as well as the "evil of ignorance" (or more specifically Ignoromics**) that allows it to continue.

* Avarice - Extreme greed for wealth or material gain.

** Ignoromics - People who are either effectively ignorant of the situation (e.g. the overall environment) or not prepared to take responsibility to make sure it changes for the better.