Wednesday, July 8, 2009

Eradicate Poverty

Greetings good citizen,

tonight’s offering sparked a short-lived rally in today’s markets as investors once again took heart in ‘less bad’ news.

I’m currently reading a rather scathing review of the IMF and its reckless variety of ‘economic analysis’ penned by Nobel laureate Joe Stiglitz.

Bizarrely, the IMF’s ‘mission’ is to ‘eradicate poverty’ via the ‘free and unfettered markets’.

While Mr. Stiglitz hasn’t yet addressed or commented on this topic, I find myself wondering what the IMF thinks the ‘cause’ of poverty is?

Because there isn’t an economy on this planet that doesn’t have ‘free markets’…even today’s ‘communist’ nations have abandoned the concept of publicly owned enterprise for the ‘efficiency’ of private enterprise.

Which is and always has been the ‘source’ of poverty. Naturally, there will be more on this topic after the article.

I.M.F. Upgrades Its Outlook for Economy in 2010

Published: July 8, 2009

WASHINGTON (Reuters) — The global economy is starting to pull out of recession but recovery will be sluggish and government policies need to remain supportive, the International Monetary Fund said on Wednesday.

In an update of its World Economic Outlook, the monetary fund said the global economy would probably contract 1.4 percent this year, a touch steeper than the 1.3 percent decline it expected in April.

It now sees world economic growth of 2.5 percent in 2010, however, compared to an April projection of 1.9 percent. [So they are saying the global economy will ‘contract’ but then it is going to expand more than it contracts…how the hell do you work that out?]

“Financial conditions have improved more than expected, owing mainly to public bailous intervention, and recent data suggest that the rate of decline in economic activity is moderating, although to varying degrees among regions,” the monetary fund said.

The monetary fund said policies should remain supportive until growth resumes and deflationary risks dissipate. Where there is room, it said, central banks should explore cutting interest rates further and signal that they intend to keep them low until a durable recovery is under way. [Which begs the question of where a ‘durable recovery’ is going to come from, not to mention how many will be ‘frozen out’ of a recovery, making its ‘durability’ questionable.]

It said concerns about rising government debt levels, as a result of higher government spending to shore up economies, highlight the need for stronger medium-term fiscal policy frameworks.

“Although fiscal policy should stay supportive through 2010, plans should be made for rebuilding fiscal balances and ensuring sustainable debt paths after growth is firmly re-established,” the monetary fund said.

You don’t suppose they are being deliberately ‘vague’, do you?

What the hell does “plans should be made for rebuilding fiscal balances and ensuring sustainable debt paths after growth is firmly re-established,” mean?

Talk about ‘clueless’, don’t they know we’re in this mess BECAUSE of excessive debt?

Or is the word ‘sustainable’ supposed to mean that we are supposed to engineer a recovery that leaves vast swaths of the global population destitute?

Because that’s what the ‘shorthand’ here says, since the wealthy are the only ones that can ‘afford’ credit, the rest of the world will have to live without it.

Welcome to the ‘New Serfdom’ good citizen because in the future it will be impossible to improve your lot in life if you are not born ‘creditworthy’.

Then there is the ‘growth’ nonsense. Understand that the reason the economy needs to perpetually ‘grow’ is so it can keep up with ‘rent’ payments to the ‘owners’ of the world.

There isn’t an economist out there that advocates the ‘sustainability’ we desperately need, every one of them ‘promotes’ growth, not for the sake of our growing population but to keep up the payments on the incredible mountain of debt that is being piled on us by the ‘owners’.

As I was ‘pontificating’ on earlier, the primary source of poverty is the removal of your ability to fend for yourself. ‘Free Markets’ don’t exist if you can indeed obtain what is being marketed for free.

In a bizarre contradiction of terms, ‘free markets’ are predicated on the ‘protection of private property’…which if you don’t have any, well, tough.

Simply put, the first step to creating a ‘market system’ is separating the customer from their free access to the product on offer.

If you have read the ‘Grapes of Wrath’ you know farmers that couldn’t fetch a good price for their produce burned or otherwise destroyed it to prevent prices from falling further…while millions starved!

The primary difference between ‘liberals’ and ‘conservatives’ is whether or not you think this was a good thing.

Not only have you been, er, ‘denied access’ to the bounty of nature, you have also been denied access to a place to hang your hat. The ‘need’ to live indoors and eat regularly is the ‘motivation’ for you to continue to labor to make someone else rich while digging the hole for yourself deeper in the process.

Worse is the failure to recognize who the ‘cost of living’ is ‘manipulated’ to keep prevailing wages at ‘sustenance’ levels. It’s not about you ‘getting ahead, it’s about profits for the owners.

So we arrive once again at my favorite issue, the Human Anti-exploitation law.

Poverty cannot be eradicated until we banish private income streams to the trash heap of history.

Where does money come from? It is produced by ‘labor’ with the creation of useful goods or services. The ‘seller’ (typically) produces neither the goods nor the services, as most modern products are a combination of inputs produced by multiple workers whose labor the ‘seller’ has purchased, invariably at a fraction of its true value.

Worse, not only does the seller fail to pay labor fully for what it produces they multiply their cost for labor into the price of the product.

Let’s suppose for a moment that we were to cut out the ‘middleman’ here and pay labor directly for their produce.

Prices would fall dramatically. Why? Because labor and inputs are both FREE. Better yet, the same thing would happen with ‘Real Estate’.

Nobody needs to ‘own’ a house; they merely need the ‘use’ of one. The buying and selling bullshit only generates profits for the ultimate holder of all property, the banks.

If this sounds sensible that’s because it is!

Sadly, those who control what passes for our legal system think ‘property rights’ are the way to go.
As long as there is property, there will be poverty.

I say it is long past time to set humanity ‘free’.

Thanks for letting me inside your head,


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