Wednesday, June 13, 2012

THE BAIN OF OUR EXSISTENCE


American capitalism and free enterprise has slowly distorted into the tyranny and oligarchy of our time; one that without reform will surely plunge the globe into a massive depression. There can be no beneficial form of unsustainable capitalism that does not hamper growth and the constant acceptance of the current system by the media and government is playing into the hands of special interests. This nation was created with the understanding that commerce and mercantilism benefits the stakeholder, namely American citizens, not just shareholders.  At no time has this blood sucking stranglehold been more evident in the media and politics as it is now with this blatant defense of Bain Capital and venture capitalism. Patrick, Booker, Rendell, Bubba and the President have taken money from Bain or other venture capitalists and will no doubt continue to do so as they shamelessly continue to say how venture capitalism is legitimate and an essential part of capitalism but it is clearly as a whole only essential to shareholders. VENTURE CAPITALISTS DO NOT BUILD LONG-TERM BUSINESS!!. Their entire goal is to achieve specific returns in specific time periods by driving companies into an exit (IPO or sale). While some venture capitalism may benefit some companies, especially startups, the fact that their business model does not make these successful businesses their only goal makes them erroneous to our system. Since when do we accept any type of business which purposefully extract and manipulate capital at the expense of workers and the public? The sore corrupted rotten diseased big toe of venture capitalism, just as Wall Street’s needs to be cut off and made illegal. It is as if to say its ok to steal 3 apples a day if you help someone else eat one apple a week. They, as all of our financial institutions need to be reformed as parts of each become criminalized. To continue to justify this behavior is to continue to erode the back bone of any modern industrial society, namely; real asset based sustainable growth. The irony is that it can all be fixed with a simple set of rules and laws; but the implementation of such laws would of course remove the teat from the mouth of stockholders including a vast majority of 401 K holders yet, any such reform can include new opportunities, solutions that would usher in a new all-inclusive golden age. The irony is, without reform 401ks and stocks in general will eventually crash as derivatives continue to squander investment into ticking time bombs without leveraged capital requirements.
 It is clear that massive structural reforms are needed to return our capitalist structure to its root intentions. Even corporations were first designed to be charters adhering to a given cause benefiting the public. It was only after the passage of the 14th amendment meant only to free African Americans that lawyers used the amendment to make corporations people and of course we all know what the Supreme Court has done with that since then; giving them control of our democratic process. Any business must have the goal to benefit its employees and its customers in a sustainable renewable fashion not in a detrimental manner designed merely to create profit. Likewise investing needs to focus on growth and sustainable commerce or services and should not be allowed to continue to manipulate, extort and exploit only for profits sake. The idea of venture capitalists downsizing companies in order to save them may very well save some from closure but the logic is flawed because they should be building upon companies not diminishing any. Where is their duty and obligation to society? It is as if our entire fiscal structure is formulated on the indolent principal of self-mutilating gluttony. The fat cats are eating their own guts and their regurgitation can burn us all. Republicans continue to hammer away at regulation but it is precisely more regulation and structural reform that is needed in order to spur job growth and create more wealth.
 If Wall Street focused on sustainable and renewable assets their shareholders and investors would partake in a tremendous boom of extreme growth just as the community does.   If free trade were married to some type of minimum wage likewise would most of our problems disappear. Economic philosophy must focus on the needs of the people. Take a look at foreclosures for example. The problem can be easily fixed if all these homes were simply rented to the initial owners or others at low rates. Republicans also fear European value added taxes; well what if similar taxes would instead go to investors building or repairing bridges, roads, schools, environmental clean ups,  and so on. New tolls on new bridges, modest entrance fees on new parks, and so on. The idea may seem awkward but building bridges were among the first charters granted to corporations. The bottom line is that any maximizing of profits must involve long term sustainable growth and can in no way harm the population. There is nothing wrong with doing everything a company can do to maximize profits, that’s how free enterprise and capitalism works; but not without sensible laws, proper incentives, and regulations. We continue to deny the lessons of the Great Depression, after which came Glass Steagall and a ban on prop trading bucket shop contracts. Why we deny that such activity should be criminal is clearly a sign of the massive corruption inflicted upon us by the Fed. The only way I can see us getting real reform is if a white knight comes to save us, like Obama should have been, or if we the people demand these specific reforms or remove money from politics; the latter to be easily replaced with interactive community based democracy.  The occupiers must sit and refuse to move until money is taken out of politics, Glass Steagall is reinstated, or the CFMA of 2000 is repealed; any of these basic reforms would restore global economic growth and avert depression.

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