APPELLO / APPEL / APPEAL

Posted: 4th marzo 2014 by rivincitasociale in Politica
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PROEMIO – AVANT-PROPOS – FOREWORD (For the English version, please go to the March 2014 Posts section)

POTERE AL POPOLO

Fine Novembre/inizio Dicembre 2017 è nato dal basso questo nuovo Soggetto politico POTERE AL POPOLO con il cuore e la pratica teorica e concreta ben ancorati a sinistra. Mi sembra un evento capitale.

« Rivincita sociale » auspicava un tale risorgimento da tempo. Perciò salutò questo evento con entusiasmo sin dall’inizio. Spero che si manifesterà un supporto generale su tutto il nostro territorio nazionale da parte di tutte le compagne ed i compagni per fare si che il popolo delle lavoratrici e dei lavoratori italiani e le cittadine/i tutte/i ritornino a scrivere in proprio la loro Storia nazionale, internazionale e umana. Sovranità e potere al popolo …

Paradossalmente, il Rosatellum ha aperto uno spiraglio elettorale con una soglia bassa ideata per salvare vari servi in camera del regime attuale. Non perdiamo questa sfida, anch’essa essenziale per la giusta difesa e rappresentanza del nostro programma e dei nostri ideali ugualitari.

Basta qui rimandare al sito con la richiesta di diffondere ampiamente: https://poterealpopolo.org/

Mi sia concesso aggiungere questo: Per me uguaglianza, libertà e scienza sono termini strettamente legati uno con l’altro. In quando Marxista sappiamo la differenza tra narrazione e scienza. Sappiamo che la scienza sociale e socio-economica, ovvero il materialismo storico, è fondata su due verità assiomatiche: l’opposizione definitiva ad ogni forma di esclusivismo, teocratico o razziale che sia, opposizione senza la quale non esisterebbe nessuna forma di demo-crazia, e la Legge del Valore, la quale dimostra lo sfruttamento capitalista all’origine del profitto, e mostra la via al suo superamento socialista tramite la pianificazione concepita come forma concreta di democrazia socialista grazie alla dominanza della proprietà pubblica e collettiva.

Non sottovalutiamo questi due aspetti scientifici del Marxismo. Permettetemi di rimandare al mio Compendio di Economia Politica Marxista ed alla mia Introduzione metodologica, ambedue questi testi sono liberamente accessibili nella Sezione Livres-Books del mio primo sito www.la-commune-paraclet.com

Con la mia solidarietà,

Paolo De Marco

« La politica non è l’arte del possibile bensì l’arte di fare emergere nuove possibilità socialmente più umane » (Marzo 1985)

                                Jure Vetere : l’unico vero tempio è la coscienza umana.

ITALIANO. Vai all’Appello

Care compagne, cari compagni,

E arrivata l’ora della rivincita sociale dei popoli, in Italia ed in Europa. E arrivata l’ora di lavorare tutte/i insieme alla nascita di Comitati cittadini per la Rivincita Sociale capaci di condurre all’emergenza del Partito della Rivincita Sociale. Questi partiti nazionali comporrebbero poi una Federazione Per l’Europa Sociale, che al suo turno farebbe parte di una Nuova Internazionale (senza cifra). Il nome mi sembra importantissimo, perché corrisponde al programma come pure alla voglia di ricatto oggi molto diffusa tra le nostre cittadine e i nostri cittadini.

A questo link troverete un Appello intitolato « E arrivata l’ora della rivincita sociale dei popoli, in Italia ed in Europa ». In riassunto il programma proposto, da dettagliare in comune, è lo seguente:

a) Una nuova definizione dell’anti-dumping – per i dettagli vedi l’Appendice dell’Appello. Nel sistema commerciale globale attuale, la base del calcolo dell’anti-dumping è il salario senza contributi sociali. Noi chiediamo semplicemente che sia il salario con tutti i contributi sociali.

b) La nazionalizzazione del credito per eliminare simultaneamente il debito pubblico ed il « credit crunch », e per toglierci il Fiscal Compact dalle spalle, assieme ai banchieri ed alle loro banche cosiddette « universali » .

c) La laicità, la parità donna-uomo e i diritti civili;

d) L’ecomarxismo, il ripristino del Territorio ed il principio di precauzione;

e) La democratizzazione dell’educazione e della cultura, ed il finanziamento pubblico della Ricerca & dello Sviluppo;

f) La fine della sovra rappresentanza socio-economica e mediatica, come pure la fine della falsa rappresentanza elettorale e democratica – cioè, la fine della falsa rappresentanza elettorale a tutti i livelli, anche al livello sindacale, a dispetto della Costituzione.

g) Il ripudio di ogni intervento estero o di guerra che non sia strettamente difensivo, assieme al ritorno allo spirito ed alla lettera della sicurezza collettiva.

Sottometto quest’Appello alla vostra attenzione, chiedendo cortesemente una risposta. Per arricchire la riflessione comune potete aggiungere un commento a questo Appello – i commenti giudicati non idonei alla deontologia scientifica o cittadina saranno cancellati. Oppure i Comitati in formazione potranno contattarmi all’indirizzo qui sotto per trovare il migliore modo di coordinamento. Mi permetto sopratutto di chiedervi la più ampia diffusione possibile dell’indirizzo di questo sito tra le vostre conoscenze, tra i vostri membri ed altri gruppi amici, almeno se giudicati che questo possa essere utile per lanciare il dibattito e creare una dinamica rivendicativa di fondo. Il sito stesso dovrebbe diventare il vettore di una creazione collettiva. L’emergenza capillare dei Comitati dovrebbe presto trasformarsi in un’onda gigantesca ed autonoma ma organica al popolo delle lavoratrici e dei lavoratori intellettuali e manovali, in breve organica a tutte le nostre e tutti i nostri concittadine/i di buona volontà.  

La rottura radicale col sistema neoliberale attuale non si fa a parole ma bensì militando e organizzandoci per cambiare l’attuale definizione dell’anti-dumping, costruendo il programma attorno a questa domande chiave. Questo renderà tutto il resto possibile.

Perciò, questa nuova definizione deve ricevere priorità assoluta anche perché, interiorizzandone la logica, si muterà radicalmente il « senso comune » della gente, e si creerà gli anticorpi ideologici – nel senso nobile del termine – necessari al nostro popolo, aprendo così la strada alla concezione pratica di un nuovo modello sociale, sostenuto dall’evidenza scientifica, come pure dai principi cardini della nostra Costituzione. Su questa base risulterà possibile costruire una vasta alleanza di classi in vista di « una riforma democratica rivoluzionaria », tranquilla ma capace di andare alle radici dei problemi che confrontano il nostro Paese e la nostra gente.

Alcune/i di voi mi conoscono già tramite le mie e-mail inviate a controg8@yahoogroups.com, e forse anche grazie al mio sito www.la-commune-paraclet.com. Da qualche mesi, ho effettuato il mio rimpatrio in Italia, a San Giovanni in Fiore, nella mia città nativa in Calabria, col desiderio di essere utile al lavoro di militanza e di organizzazione comune, oggi più urgente che mai.

Vostro,

Paolo De Marco

Per contattarmi: la-commune@virgilio.it

Sul sito del Sindaco di San Giovanni in Fiore (CS), G. Belcastro, possiamo leggere :

« La Regione Calabria ha pubblicato sul suo sito istituzionale la graduatoria del Psr, misura 8.3.1.

Abbiamo ottenuto un finanziamento di 473 mila euro per interventi nella prevenzione di incendi e calamità naturali. ». Questa si aggiungerebbe alla misura 8.1.già ottenuta.

(Nota aggiuntiva del 15 novembre: Abbiamo fatto bene usare il condizionale. A seguito di una critica del consigliere Bitonti, il sindaco ha ammesso che la Misura 8.3 non è ancora finanziata. Scrive Bitonti riferendosi al decreto regionale 12 960 del 12/11/2018 : « Essendo il nostro comune ottantasettesimo non prenderà nessuno finanziamento. » Significa che le nostre lotte rivendicative devono continuare per ottenere questo finanziamento per l’anno prossimo …In tanto si va avanti con la Misura 8.1)

Paolo De Marco, portavoce del Comitato Cittadino per il Lavoro Dignitoso (CCLD) desidera presentare i suoi più ammirativi complimenti ai membri del CCLD e a tutte le altre disoccupate/i della nostra Città che hanno lottato con esemplare tenacia, ma sempre in modo « civile, pacifico e costruttivo », sin dal mese di febbraio 2016 per la creazione di posti di lavoro e per l’avio di un autentico processo di sviluppo locale. Queste lotte portate avanti con il slogan « non vogliamo più sussidi, vogliamo lavoro dignitoso » mi sembrano degne di ispirare la Calabria e l’Italia intera.

Benché le misure annunciate non corrispondessero interamente alle rivendicazioni delle disoccupate/i (1), è utile ricordare che sono derivate dal Progetto Numero 6, uno dei 7 progetti presentati dal CCLD. (2)

Il mio auspico è doppio: 1 ) Che le misure annunciate siano riservate a cooperative con almeno 80% di disoccupate/i e inoccupate/i altrimenti costituirebbe una grande ingiustizia oltre ad essere una scelta socio-economicamente irrazionale; 2 ) Che gli altri progetti presentati dal CCLD siano anch’essi presi in considerazione ed attuati.

Con la mia ammirativa solidarietà,

Paolo De Marco

Portavoce del CCLD

1 ) Le misure annunciate rischiano di essere temporanee. La proposta iniziale del CCLD era di agire tramite cooperative pubbliche per attingere ai fondi europei. In questo modo, le somme sbloccate come co-finanziamento avrebbero potuto essere moltiplicate per 2 o anche per 4 per la durata dei progetti. Il finanziamento europeo per questi progetti dura in media due anni, a volta tre.

2 ) Per i progetti del CCLD vedi la « Categoria » Comitato Cittadino per il Lavoro Dignitoso in http://rivincitasociale.altervista.org

Prof. Paolo De Marco                                                                                                                                                          San Giovanni in Fiore (CS)

Data: 7 Novembre 2018

Oggetto: Secondo esposto per la dovuta riaperture delle indagini relative alle mie denunce contro noti – fascicolo 3955/17 – archiviate falsamente come accuse contro ignoti – codice 44 -, senza nessuna indagine in loco e senza nessuna analisi delle prove.

In qualità di rappresentante legale di me stesso.

Al Procuratore Dr. Spagnuolo, in persona.

Procura di Cosenza,

Repubblica italiana,

dirigente.procura.cosenza@giustiziacert.it

 

     Egregio Dr. Spagnuolo,

In qualità di rappresentante legale di me stesso, sollecito la riapertura immediata delle indagini relative alle mie denunce contro noti – fascicolo 3955/17. La recente decisione del Dr. Cozzolino di mantenere l’archiviazione è illegittima anche perché la nota con la quale mi fu notificato il rifiuto di riaprire il fascicolo porta un codice erroneo, cioè il codice 44, il quale concerna denunce contro ignoti. (Vedi Documento 1 con il suo allegato*.)

Con il dovuto rispetto per la magistratura e per il « due process » in uno Stato di diritto degno del nome, insisto sul fatto che l’archiviazione del 18 novembre 2017 notificatami il 3 settembre 2018 ed ora seguita con il rifiuto di riaprire il caso, costituisce una chiara e drammatica violazione di tutti i miei diritti fondamentali, incluso i miei sacri diritti all’incolumità ed alla possibilità di assicurare la mia difesa legale.

Nessuna inchiesta in loco fu mai condotta; le prove sequestrate dai carabinieri non furono mai analizzate. L’alterazione del mio cibo e delle mie bevande produce un effetto fisiologico: anche per ragioni di salute la Procura di Cosenza ha l’obbligo di prendersi la responsabilità di fornirmi i risultati delle analisi ancora non condotte. La Procura deve anche spiegare in modo razionale come furono macchiante le me tovaglie da bagno malgrado il mio sistema di allarme e le due telecamere di sorveglianza. La Procura non può in nessun caso versare nella violazione della procedura la più elementare.

Con la sua violazione della procedura, la quale ammonta ad una negazione calcolata della giustizia tale da essere accettabile in nessuno paese più o meno civilizzato, il Dr. Cozzolino si istituisce de facto complice dei criminali che violano il mio domicilio, alterano il mio cibo e le mie bevande e procedendo ad intimidazioni poliziesche-mafiose macchiando le mie tovaglie da bagno di pittura rossa. Questo avviene con l’ovvio supporto dei servizi di sicurezza italiani, malgrado la protezione dello Stato conferitami in Prefettura il 7 aprile 2017 in presenza di un testimone. Senza questo tanto cinico quanto incompetente coinvolgimento dei servizi di sicurezza italiani, non solo le violazioni ripetute del mio domicilio sarebbero state impossibili, visto il sistema di allarme e le due telecamera, ma la magistratura ed i carabinieri si sarebbero certamente comportati in un modo legalmente accettabile. I colpevoli sarebbero già stati arrestati. Il che ora non è il caso. Per ora, la mia esperienza della giustizia italiana è quella del totalitarismo più incompetente e più spietato, quella di criminali polizieschi-mafiosi certi della loro impunità. La Procura di Cosenza deve prenderne atto.

Non è il ruolo di un magistrato degno della sua funzione e pagato con soldi pubblici proteggere criminali, anche se questi appartengono ai servizi di sicurezza. Non è il ruolo di un magistrato, in Calabria o altrove in Italia, coprire il depistaggio messo in opera dal criminale comandante Pantano e dal suo spregiudicato accolite Dr. Curzio. Si tratta di un depistaggio mirato a discreditarmi, non solo per archiviare le mie denunce ma, peggio ancora, per potere continuare le violazioni da me denunciate in tutta impunità. Con la sua archiviazione e con il suo rifiuto di riaprire il caso, il Dr. Cozzolino diventa complice attivo e consapevole dei crimini perpetrati contro di me, diventa complice della gravissima diffamazione della mia persona che risulta dalla diagnosi illegale e scellerata del criminale Dr. Curcio.

Prego la Procura prendere tutte le misure necessarie per riaprire il caso, per arrestare i colpevoli e ristabilire la mia reputazione.

Per non dovere ripetere inutilmente le ragioni che rendono l’apertura del fascicolo obbligatoria assieme al ristabilimento intempestivo della mia riputazione, in particolare con referenza alla criminale ed illegale diagnosi del Curcio, riproduco qui sotto la mia richiesta del 4 ottobre 2018, sollecitando una rapida risposta.

« Con referenza alla mia PEC del 10 settembre 2018 indirizzata al Dr. Cozzolino in persona, ribadisco la mia formale richiesta di riapertura delle mie denunce contro noti – fascicolo 3955/17. Di preferenza da un altro magistrato visto le due illegittime archiviazioni decise senza la minima indagine dal Dr. Cozzolino. Una nota manoscritta del Dr. Cozzolino in data del 3 settembre 2018 mi informava della archiviazione del fascicolo 3955 (14) contro ignoti, fascicolo che non corrisponde per niente alla mia denuncia contro noti del 17-05-2017 seguita dalla cruciale 3e integrazione del 22 agosto 2017 e da varie altre, l’ultima, la 5e Integrazione, essendo stata formulato il 20 aprile 2018.

La tempistica della risposta del 3 settembre 2018 merita spiegazione. Questa nota manoscritta del Dr. Cozzolino, redatta e firmata il 31-08-2018, porta una data di archiviazione del 18 novembre 2017 senza che nessuno abbia giudicato necessario informarmi, lasciando i carabinieri di San Giovanni in Fiore trasmettere le mie Integrazioni come se niente fosse … In effetti, dopo verifica in Procura il 3 ottobre 2018, risulta che il fascicolo 3955/17 corrisponde alle mie denunce contro noti e contiene la nota manoscritta errata del Dr. Cozzolino come unica motivazione della seconda archiviazione, benché nessuna indagine in loco sia mai stata effettuata e benché le prove sequestrate dai Carabinieri non siano mai state analizzate.

Ecco i fatti e le premesse che rendano la riapertura del fascicolo e il rispetto del due process obbligatori.

I fatti:

1 ) Io, Paolo De Marco, sono un cittadino italiano, con passaporto italiano, residente a San Giovanni in Fiore (CS) sin dal mese di Giugno 2013. Sono una persona per bene, tra l’altro con una scolarità di dottorato – PhD – e contributi scientifici di primo piano nelle mie discipline, rispettoso della legge e con una riputazione fin qui immacolata. Sottolineo che non sono mai stato accusato di nessuno reato in nessuno Paese. Per educazione familiare e formale non ho mai mancato di cortesia a nessuno, limitandomi a difendermi legalmente quando offeso sulla base di fatti verificati, conservando comunque sempre la mia fiducia nella buon senso e nell’imparzialità della giustizia.

2 ) Sin dal mio rimpatrio dal Canada in Italia nel mese di Giugno 2013, il mio domicilio è costantemente violato durante la mia assenza. Queste violazioni danno luogo all’avvelenamento del mio cibo e delle mie bevande causando un « boiling body effect ». In oltre, con intimidazioni di chiaro stampo poliziesco-mafioso, i perpetratori di questi crimini macchiano le mie tovaglie da bagno di pittura rossa. Una camicia bianche fu anche macchiata con della vernice giallastra.

3 ) La prima seria di denunce risalente al 2014 fu archiviata con un stratagemma altamente criminoso messo in atto dal comandante Pantano e dal suo complice il Dr. Curcio. Visto la continuazione dei crimini denunciati al punto (1) qui sopra, avevo chiesto un incontro con il comandante Pantano per spiegarli la gravità del caso e chiedergli le ragioni della continuazione dei crimini denunciati malgrado tutte le mie denunce e proteste. L’incontro ebbe luogo il 30 novembre 2015. Portò anche con me delle prove, cioè una bottiglia di Vecchia Romagna avvelenata per causare un « boiling body effect » e delle tovaglie macchiate, che alla fine il comandante Pantano prese in custodia.

Durante questo incontro da me richiesto, senza avvertirmi, il comandante Pantano aveva preparato una trappola indegna del suo incarico istituzionale retribuito con fondi pubblici: mi fece trovare lì il criminale e incompetente Dr. Curcio che non avevo mai visto prima. Dopo il mio esposto al comandante Pantano, il Curcio, al quale si era rivolto il comandante, sentenziò: « È angosciato, ci vuole una pillola ». Gli intimò allora di stare rigorosamente zitto perché io non lo conoscevo ed ero venuto per parlare con il comandante. All’uscita chiese al Curcio chi era, dopo di che gli spiegò gentilmente i doveri imprescindibili della deontologia medica, illustrandogli anche il fatto che le indagini per violazione di domicilio e per le altre accuse da me formulato non erano affare di medico ma della Procura e dei carabinieri.

Ad quello incontro, in un modo totalmente inconcepibile, il comandante Pantano osò minacciarmi se porgevo altre denunce. Mi minacciò in oltre di chiedere un parere alla Commissione, cosa ovviamente mai fatta. Io respinsi le minacce intimidatorie del comandante con la fermezza di un cittadino cosciente dei suoi diritti costituzionali e di una persona per bene. Gli mostrò nuovamente le prove portate con me, e gli chiese di spiegarmi come lui, in quanto comandante dell’Arma, ne rendeva conto. Sottolineò pure il fatto che alla luce delle mie denunce e proteste, né la Procura, né i Carabinieri potevano pretendere ignorare le violazioni continue del mio domicilio e gli altri crimini perpetrati contro di me. Si pone allora la questione dell’impunità garantita ai violatori del mio domicilio malgrado il sistema di allarme e le due telecamere che avevo fatto istallare per prudenza dissuasiva prima di formalizzare le mie denunce. Alla fine il comandante accettò di prendere in custodia le mie prove.

4 ) Questa vile e illegale messa in scena del comandate Pantano e del suo complice Curcio aveva un obbiettivo ben preciso: delegittimare le mie accuse facendomi passare per un « paranoide ». In questo modo si coprì i criminali da me denunciati, permettendo loro la continuazione dei loro crimini con massima impunità. Ovviamente, la stessa cosa si produrrà con la seconda archiviazione abusiva del Dr Cozzolino. Questa messa in scena delinquenziale del Pantano e del Curcio fu smascherata il 7 aprile 2017 quando ricevetti, in presenza del noto giornalista Emiliano Morrone, l’assicurazione della protezione dello Stato in Prefettura. Dopo questo incontro in Prefettura feci una richiesta di accesso agli atti presso la ASP di Cosenza. Scoperto così l’infamante e criminale diagnosi del Curcio, fui dunque in grado di completare la mia denuncia contro noti in data del 17 maggio 2017 con le sue 5 Integrazioni. I noti da me denunciati sono il mio giovane vicino Pasquale Oliverio, visto uscire da casa mia con i miei propri occhi, e i vili criminali Pantano e Curcio. L’illegale e criminale diagnosi di paranoia era stata ideata solo per coprire i colpevoli. Va subito tolta dal mio fascicolo medico. A dire vero, mi sarei aspettato ricevere i complimenti della mia Repubblica nativa per il coraggio tranquillo e la serenità legale da me opposti a queste scellerate manipolazioni durante tutti questi anni.

5 ) Tra i fatti pertinenti entra pure il peculiare contesto italiano e calabrese. Primo, è usanza delle mafie e di certi nostri servizi sviati – con l’aiuto di vari servizi stranieri – delegittimare le persone da loro non gradite, sopratutto quando le intimidazioni poliziesche-mafiose non raggiungono il loro obbiettivo. Secondo, questa gentaglia usa di tante complicità per operare vari depistaggi in modo da coprire le sue azioni illegali e spesso condotte con la sporca incompetenza tipicamente indotta della certezza dell’impunità. Si tratta qui delle violazioni più reprensibili dell’ordinamento delle nostre leggi, un’evidenza che non dovrebbe sfuggire né ai magistrati, né alle istanze garanti, incluso i Ministri della Giustizia, dell’Interno e della Difesa.

Premesse per la dovuta riapertura del fascicolo corrispondente alle mie denunce contro i noti qui sopra nominati.

1 ) Cover up e depistaggio. Un magistrato della Repubblica italiana non può direttamente o indirettamente partecipare o avallare le azioni illegali perpetrate contro cittadini, tali la violazione continua del domicilio, l’avvelenamento del cibo e delle bevande e le intimidazioni di stampo poliziesco-mafioso. Questo si applica con più forza ancora quando i servizi di sicurezza italiani sono ovviamente implicati e complici, a prova la copertura tecnica fornita per neutralizzare il mio sistema di allarme e le due telecamere di sorveglianza.

Sottolineo che i crimini e le manipolazioni, degne di un Philip Zimbardo totalmente sviato, perpetrate contro di me e da me dimostrate, confermano le mie denunce che riguardano il Canada, in particolare per quello che riguarda l’omicidio medico del mio fratello maggiore, Giuseppe De Marco. (1) Non è il ruolo della magistratura italiana proteggere i crimini dei servizi esteri perpetrati contro cittadini italiani e continuati sul territorio italiano. Se i crimini perpetrati contro di me in Italia hanno una origine in Canada, allora questa origine è necessariamente fabbricata, illegale e criminosa. Ne segue che ho il diritto costituzionale di esserne informato per assicurare la mia difesa. Ripeto che io non sono mai stati accusato di nessuno reato in nessuno paese. Ripeto che io, Paolo De Marco, non sono una cavia consentente per incompetenti sviati, per altro con molto meno educazione di me e che, in quanto tale, chiedo con forza i risarcimenti esemplari dovuti per i danni accademici, sociali e personali a me causati.

2 ) Abuso di potere ovviamente criminale. Un magistrato della Repubblica italiana non può direttamente o indirettamente coprire un comandante dei carabinieri e un medico incompetente e sviato per motivare un depistaggio – cover up – archiviando abusivamente il caso senza reali indagini e senza analisi delle prove, sapendo però che si rovina irrimediabilmente la riputazione e la vita della parte offesa. O sarà forse questo lo scopo della Procura di Cosenza?

La prima conseguenza nefasta della criminale diagnosi del Curcio, a parte la continuazione dei crimini perpetrati contro di me con intera impunità, fu verificata dall’avviso negativo della Dott.ssa Nicotera alla mia richiesta di possesso di arma a fuoco, cioè di un vecchio moschetto storico, non più funzionale, del mio defunto padre. (2) Sapendo perfettamente quello che ho risposto al test, l’unica ragione del suo rifiuto è la diagnosi del criminale Curcio ancora presente nel mio fascicolo medicale malgrado la mia richiesta al Dr. Cozzolino e all’Ordine dei Medici di ristabilire con massima tempestività la mia riputazione e l’onore del mio cognome. Ho già richiesto la copia dell’avviso negativo della Dott.ssa Nicotera. L’onore del mio cognome va ripristinato subito, senza se e senza ma. La mancanza grave a tutte le regole della deontologia medica da parte del Dr. Curcio va sanzionata con il massimo rigore, come da me richiesto all’Ordine dei Medici di Cosenza. (3)

3 ) Discrezionalità del magistrato. La discrezionalità di un magistrato della Repubblica italiana nell’archiviare un fascicolo non si estende al suo potere di ignorare le prove negando così il due process e più ancora il sacro diritto di difesa legale della parte offesa.

Chiedo perciò la dovuta e immediata riapertura del fascicolo corrispondente alle mie denunce contro noti e il rigoroso rispetto del due process.

Cordiali e rispettosi saluti,

Paolo De Marco, ex-professore di Relazioni internazionali – Economia Politica Internazionale.

* A parte il « Documento 1 con il suo allegato » tutti gli allegati qui menzionati furono già trasmessi nell’esposto del 4 ottobre 2018.

NOTE:

1 ) Le mie denunce rispetto all’omicidio medicale del mio fratello maggiore sono dimostrate senza la minima ombra di un dubbio, ad esempio, per quello che concerna le prove principali, quelle pubblicate nella Nota * intitolata « The medical murder of Giuseppe De Marco (see some essential documents below) » in http://rivincitasociale.altervista.org/self-separation-the-united-states-and-israel-leave-unesco-good-riddance/ . Tutti i documenti pertinenti sono copiati in uno CD disponibile nel fascicolo 3955/17.

2 ) Avendo trovato negli attrezzi del mio defunto padre, un vecchio moschetto non più funzionale, risalente al tempo di Napoleone, andò subito dai Carabinieri, i quali mi informarono dell’iter da seguire per ottenere il possesso di arma a fuoco. (Vedi l’esposto del 20 aprile 2018). Come tanti immigrati ritornati in Paese, tengo molto agli oggetti che hanno appartenuto alla mia famiglia. Sono orgoglioso di averne potuto restaurare alcuni prima che sia troppo tardi. Il vecchio moschetto storico sarebbe comunque stato piombato per sicurezza come discusso con i carabinieri.

3 ) Sembra che l’Ordine dei Medici di Cosenza pensa di potere ignorare la mia richiesta per la radiazione del Curcio dall’Ordine in data del 25 settembre 2017. Ad oggi non ho ricevuto nessuna risposta malgrado due interventi del ministero della Salute, tramite la Dott.ssa Cristina Rinaldi. Questo comportamento dell’Ordine dei Medici è perfettamente illegale e inaccettabile. Va sanzionato in modo esemplare. »

Aggiornamento del 25 ottobre 2018:

1 ) « Immigrazione, i numeri contro le fake news: in Italia meno stranieri, flop delle espulsioni », Un gruppo di immigrati a lezione di italiano a Bari https://www.repubblica.it/cronaca/2018/10/25/news/dossier_immigrazione_nessuna_invasione_flop_espulsioni-209923417/?ref=RHRS-BH-I0-C6-P3-S1.6-T1

2 ) « Cosa prevede il decreto Salvini sull’immigrazione » , Annalisa Camilli, giornalista di Internazionale, 14 settembre 201811.01,  14 settembre 2018 11:01 https://www.internazionale.it/bloc-notes/annalisa-camilli/2018/09/14/decreto-salvini-immigrazione

3 ) « Migranti, Salvini taglia ancora: “I 35 euro? Adesso li dimezzo” », Il ministro dell’Interno taglia (ancora) le spese per l’accoglienza dei migranti: “Risparmieremo 500 milioni da destinare alle forze dell’ordine”. Claudio Cartaldo – Lun, 06/08/2018 – 12:12 http://www.ilgiornale.it/news/politica/migranti-salvini-taglia-ancora-i-35-euro-adesso-li-dimezzo-1562558.html

XXX

Rapido commento: Innanzi tutto, si dovrebbe rifare il punto sulle accuse che rimangono contro il Sindaco Lucano. Quasi tutte sono state messe da parte forche 2 o 3 ma non sappiamo più con precisione. E uno grosso sbaglio.

A me non risulta che il Sindaco Lucano abbia violate la legge. Prima del Decreto Salvini vigeva e vige in parte ancora l’Atto Unico sull’Immigrazione che prevede, tra l’altro, l’accoglienza umanitaria. Il Decreto Salvini ha voluto ridimensionare questo tipo di accoglienza ma non è retroattivo e comporta annotazioni presidenziali per la sua interpretazione nel rispetto della Costituzione – diritti fondamentali e diritto di asilo ecc – e nel rispetto dei trattati, incluso la Legge del Mare per le zone SAR e per il salvataggio in mare.

Sottolineo che le esperienze di Riace e Badolato sono all’origine della legge regionale calabrese del 2009 che prevede, appunto, un’accoglienza diffusa e mirata al sostegno dello sviluppo socio-economico e culturale. Di più, i fondi di coesione europei ed il loro recepimento da parte della Regione, comporta il mandato dell’inclusione sociale, il che sarebbe proprio il caso dell’esemplare cooperativa riacese per la raccolta dei rifiuti. Sistema che non permette l’infiltrazione del malaffare. Il matrimonio tra adulti consententi non riguarda nessuno altro, e meno di tutti lo Stato. Per tutto questo il Sindaco Lucano andrebbe medagliato dallo Stato e dalla Regione.

Gli Sprar continuano a giocare il loro ruolo anche se diminuiti dal recente decreto; speriamo che il governo saprà vietare i grossi centri chiusi, i quali, come ben noto alla magistratura, sono spesso infiltrati dal malaffare. Rappresentano il vero « business dell’accoglienza ». Il loro sovraffollamento, come quello delle nostre prigioni, ha già portato a varie condanne europee. Esiste pure un diritto dei soggetti reclusi ha proseguire contro lo Stato in corte quando lo spazio minimo a testa non è rispettato, cioè, purtroppo, nella maggioranza dei casi nel nostro Paese. I centri chiusi sono soggetti a fughe in modo che molti profughi si ritrovano per strada senza mezzi e con possibilità ridotte di varcare le nostre frontiere. In questo modo si crea – forse ad arte visto la demagogia ambiente profusa senza nessuno stato d’anima – un clima artificiale di insicurezza, proprio il contrario del clima civilizzato che regna a Riace.

Aggiungo che ogni rimpatrio forzoso costa attorno a 4000.00 euro a testa, ma raramente si trovano dei paesi disposti ad accertarli – poi comunque i soggetti ritornano quando possono. I fondi per il rimpatrio previsti nel DEF per il 2019-21, non solo sono soldi sprecati, ma sono pochissimi. Questo rafforzerebbe la tesi secondo la quale neanche il ministero si fa illusioni sul numero reale di rimpatri possibili.

Bisognerebbe ritornare alla lettera ed allo spirito della nostra Costituzione.

Paolo De Marco.

di Pasquale Cicalese http://contropiano.org/news/news-economia/2018/10/20/difendiamo-leuropa-dai-bulli-0108662

Commento rapido: Non sono mai stato impressionato da de Cecco, per dire il meno … La liquidità internazionale di una moneta rimanda alle modalità del suo uso internazionale, non necessariamente alla strumentalizzazione del « pareggio o (del) deficit della bilancia dei pagamenti, sull’esempio statunitense.» Oggi, con i suoi surplus, l’euro conta già per attorno al 22 % delle riserve mondiali, ragione per la quale i Stati Uniti sperano apertamente nel suo fallimento.

Per stabilire il dollaro US come « suzerain currency», i Stati Uniti stabilirono per prima, alla Conferenza di Savannah, il nuovo standard Dollaro-Oro, cioè la convertibilità di 35 dollari US per una oncia di oro fino. C’era una ragione precisa: alla fine della Seconda Guerra Mondiale i Stati Uniti controllavano nelle camere blindate di Fort Knox oltre 80 % delle riserve in oro del mondo. Poi, aggiunsero il GATT (1) alle due gemelle di Washington in parallele con il Piano Marshall : cioè, delle line di credito offerte con interessi per comprare prodotti americani. Senza la ricostruzione subordinata ma accelerata dell’Europa dell’Ovest con il Piano Marshall, la riconversione riuscita dell’economia americana di guerra in economia di pace avrebbe portato ad una gravissima crisi socio-economica e politica, che comunque arrivò a metta degli Anni 50 con la sovrapproduzione di Big Steeel, una delle ragioni della guerra contro la Corea del Nord e del maccartismo.

Subito dopo fu aggiunto il pagamento di interessi da parte della FED alle Banche Centrali che accertavano dollari come moneta di riserve. Cosa che fecero tutti i Stati del cosiddetto « Mondo Libero » con l’eccezione della Francia di de Gaulle, anche perché i Stati Uniti dominavano il credito capitalista internazionale grazie alla loro dominanza del FMI e della Banca Mondiale. Alcuni paesi Non-Alienati come l’Egizio – Diga di Assuan – e l’India cercarono di trovare dei contrappesi a questa dominazione finanziaria unilaterale. Naturalmente questa politica del dollaro rafforzava i flussi commerciali già manipolati dal Piano Marshall, riorientamento questi flussi verso i Stati Uniti. Questa espansione portò all’espansione delle MNCs e delle basi americani all’estero per proteggere questi flussi. Questa espansione militare assieme alla guerra in Vietnam fu pagata stampando dollari, dunque abusando dei privilegi auto-conferiti alla dollaro come « suzerain currency ». (Vedi le belle analisi di Harry Magdoff, ad esempio in Monthly Review)

In effetti, il deficit – doppio – di Nixon-Connally aveva le sue ragioni primarie in quello che la GB – costretta a concedere l’indipendenza ai suoi Dominion all’interno dell’Impero poi trasformato nel 1936 in Commonwealth – chiamò « The Burden of Empire », i.e. le spese militari del mantenimento dell’Impero.

Poi venne il primo tentativo di strumentalizzare-controllare i petrodollari con il cambiamento della Regulation Q alla fine degli Anni 60, che modificò l’operato internazionale delle banche americane, manovra poi seguita dal riciclaggio dei petrodollari da Kissinger dopo la guerra israelo-araba nel 1973: si passò allora dal Standard Dollaro-Oro di Savannah ad un standard de facto dollaro-petrolio e materie prime. Questo spiega perché il dollaro US rappresenta ancora 66 % delle riserve mondiali, permettendoli così di condizionarne i flussi. Oggi esiste un mercato petrolio e materie prime in altre monete ad esempio il renminbi …

Una volta capito questo assieme al ruolo primordiale del credito – privato e pubblico – vedi il mio articolo qui http://rivincitasociale.altervista.org/private-or-public-central-banks-to-defeat-speculative-and-economic-attacks-september-21-2018/ – allora si può concepire come cambiare la struttura dell’ordine mondiale vigente, e non solo in Turchia, Russia e Cina. In effetti, la Zona euro sta creando un veicolo per evitare l’uso penalizzante del sistema Swift – transazioni internazionali agevolate da questa piattaforma – nel contesto delle sanzioni americane, cioè l’uso illegale dell’extraterritorialità.

Se in oltre si stabiliscono delle linee di credito bilaterali come spiegato nell’articolo menzionato prima, allora il problema sarà risolto al livello monetario dei scambi, riorientando i flussi mondiali dei beni e servizi. Basterebbe poi adottare un paniere di grandi monete convertibili tra loro per dare flessibilità a questi accordi bilaterali, almeno finché i quota nazionali nel FMI non saranno riaggiustati permettendo dunque ai SDR di giocare il loro ruolo di riserve internazionali.

Detto questo per stabilizzare i scambi internazionali, stabilizzando la struttura sotto-giacente cioè la divisione internazionale del lavoro, non si potrà fare almeno della nuova definizione dell’anti-dumping da me proposta. Come spiegata nell’« Appello » nel sito http://rivincitasociale.altervista.org, questa proteggerebbe il « reddito globale netto » dei focolari. Assieme alla riaffermazione della « clausola della nazione più favoreggiata » si aprirebbe allora un’area di prosperità mondiale senza pari, nel rispetto della sovranità e della difesa dello standard di vita di tutti i Stati-Nazioni che compongono la Comunità internazionale. Sottolineo che alla sua nascita, l’organismo principale dell’ONU non era il Consiglio di sicurezza, subito favoreggiato dalla Guerra Fredda, ma il Consiglio Economico e Sociale appoggiato dall’UNESCO.

Paolo De Marco

San Giovanni in Fiore (cs)

1 ) La GB fortemente keynesiana cercò di mantenere le vecchie preferenze imperiale tramite il rilancio del Commonwealth. Questo protezionismo britannico fu subito spazzato via con un attacco americano sulla lira sterlina nel 1949. Episodio capitale da paragonare con il ruolo l’euro che fece da scudo alle riforme realmente progressiste – RTT ecc – della « gauche plurielle » sotto guida del Primo Ministro Jospin. Ruolo da meditare oggi in Italia assieme al ruolo necessario del credito pubblico. Fanno ridere – o fanno pietà ? – gli epigoni dei un euro a ribasso detto « mediterraneo » o peggio ancora « Alba mediterranea », probabilmente sempre concepito con la struttura gestionale di Mundell. Questi toglierebbero all’Italia il suo posto in Seria A perché non vogliono, o non riescono a concepire, un reale cambiamento della ridistribuzione altamente iniqua del nostro Paese per rilanciare la produttività e la competitività reali, rilanciando l’educazione, la R&S e la nazionalizzazione del cuore industriale ed economico assieme al credito, che deve ritornare ad essere in gran parte pubblico. Non parlano per il proletariato mondiale, europeo e italiano. Il loro sembra un discorso più adatto al « poujadisme » arcaico delle PMI del fallito Modello del Nord-Est – 90 % di imprese con meno di 10 operai che oggi lavorano in sub-appalto per la Mitteleuropa perché hanno contribuito a liquidare la gran parte delle grandi imprese nazionali. Deflazione monetaria auto-distruttrice alla Dini e deflazione salariale nel Euro iper-centralizzato di Mundell non sono le uniche alternative. Rimando al mio « «uscire dall’euro non serve, serve mettere fine al regime delle banche « universali »» in Download Now nella Sezione Livres-Books de mio vecchio sito www.la-commune-paraclet.com

A recent series of quick comments.

1 ) See : « IMF Issues Dire Warning – ‘Great Depression’ Ahead? » by GoldCore , Wed, 10/17/2018 – 07:48 https://www.zerohedge.com/news/2018-10-17/imf-issues-dire-warning-great-depression-ahead (see the major Comment No 4.)

Quick comment, October 17, 2018: The real problem is internal to the US and to Europe – the lands of speculative hegemonic finance. Powell wants to purge to re-establish the FED balance sheet.

The excess liquidity went into the Stock Exchange, in part. Suppose Tesla calls for Chapter 11 what is the big deal? A few funds would go broke and hopefully Murdoch too (?), which is reason enough for Powell to accelerate thing!

But the problem is the other few big corps which make up most of the capitalization and with nowhere to go for the investors, since they are already rotating like mad at the speed of their algorithms.

Asia will adopt capital controls and shift partially away from the dollar. They remember the advice given by the IMF in this respect to stop the baht hemorrhage and they probably have looked at Turkey … Which did better in keeping the IMF off, better better in any than pro-US Asia or Hungary

Paul De Marco.

Xxx

2 ) See : « Le déficit budgétaire américain au plus haut depuis 2012 »Pour l’exercice clos le 30 septembre 2018, le déficit s’est envolé à 3,9 % du produit intérieur brut aux Etats-Unis.

LE MONDE | 16.10.2018 à 10h46 | Par Arnaud Leparmentier (New York, correspondant) https://www.lemonde.fr/economie/article/2018/10/16/le-deficit-budgetaire-americain-au-plus-haut-depuis-2012_5370025_3234.html

Noter : + 6,7 milliards – 20 % pour 41.3 M  de douanes mais 31 milliards de plus sur le déficit commercial ! Et une stratégie reaganienne d’inflows de capital contre les partenaires qui a déjà échouée …

Tout le reste va à vau-l’eau :  « Les dépenses, elles, ont crû de 3 %. Le service de la dette, qui atteint environ 20 000 milliards de dollars, a progressé de 14 % (370 milliards de dollars). S’ensuivent une hausse des dépenses militaires de 6 % (700 milliards de dollars) et de sécurité sociale et de santé publique (+ 4 %, 1 950 milliards) en raison notamment du vieillissement de la population.»

xxx

3 ) See : « The Fed is Going to Hike Until Something BREAKS. » by Phoenix Capita… https://www.zerohedge.com/news/2018-10-16/fed-going-hike-until-something-breaks

Quick comment October 16, 2018: The question is « what is the new normal » in the context of hegemonic speculative finance based on a weak fractional system – weak also because of the shadow banking.

Powell seems to answer « it depends on consumer’s spending ». In the USA, speculative finance makes up to 9 % of GDP and for 20 to 30% – I should update these % – of disposable income of the average household. In an « income stream » paradigm acted after the abrogation of the Glass Steagall Act (1999), this is another way of saying that banks’ ROE is the limit, I guess , but only for the systemic ones. The proverbial « blood on the street is a good thing » as Rothschild once said.

Paul De Marco.

xxx 

4 ) New normal? Either big depression or prolonged recession or a new era of prosperity thanks to a new anti-dumping and reduction of the work week, October 12, 2018

 

See : « Donald Trump is Right About the Fed », by rcwhalen

Thu, 10/11/2018 – 20:23 https://www.zerohedge.com/news/2018-10-11/donald-trump-right-about-fed

Quick comment: Nice article. See also the quote « The two key factors behind large bank earnings over the past decade are 1) cheap funding from the FOMC and 2) cost cutting.  As funding costs for US banks “normalize” from $30 billion per quarter at Q2’18 to over $40 billion by year end, revisions to earnings estimates for JPM and other banks may start to turn downward.  Given where interest rates are today, quarterly bank funding costs should continue to climb into the $60-70 billion range by next summer. The chart below shows funding costs and interest earnings for all US banks. https://www.theinstitutionalriskanalyst.com/single-post/2018/10/08/Q318-Bank-Earnings-Tight-Spreads-Growing-Liquidity-Risk  

Comment (preliminary take): 

A ) the balance sheet of the FED and the share added by QEs and  Twist and the bailouts – tarp etc.

B ) the impact of this on the financial and non financial system notably through the fractional banking system. This is the problem that will have to be dealt with through the lower price of banks assets. T bonds but also corporate bonds. And stock exchange valuation.

C) the question is how much can be reabsorbed without blowing up the system. You can very well have an economic purge but the financial sector is now 9 % of GDP and some players notably banks are systemic. This is the absolute limit for the FED.

D ) Meanwhile, there can be blood in the street for small and medium banks, quasi-banks and non-financial institutions given the credit crunch that will become even worse. Not much of a problem for hedging given that the FED provides credit lines to other central banks unless it wants to use this as a weapon … In effect this will lead to fusion.

E ) mortgages and auto insurance and insurances will go up. Some households and home owners can get very tight.

F ) as with Volcker-Reagan the inflow of dollars does not lead to productive investing but to speculative investing. And the effect of the stimulus and tax cut from Donald Duck is vanishing already. In effect, many indicators – including Dr Copper – are pointing to a slowdown of the real economy.

G ) the trade war is materializing as a failure – the Chinese exports to the USA are up.

H ) this will then lead to recession if interest rates get up more at a steady rate, namely in 6 to 8 month.

I ) the federal debt is up and with the permanent social security deficit while regressive taxes diminish the ability to finance it.

J ) many US partners are send in crisis such as Argentina, Brazil, a bit less in Asia. 

Conclusion: the speculative cycle initiated by Volcker-Reagan – together with free-trade with so-called asymmetric interdependence – and made worse by the abrogation of the Glass Steagall Act is coming to an end BUT with the inability of the FED – and central banks – same for ECB – to arrive at a new normal with would re-establish the economy on a sane basis.  

Thus the contradictions inherent to speculative finance will get worse.

1 ) the fiscal contradiction engendered by speculative finance – in particular the role of the primary banks in monetizing the public debt – and monetarist fiscal policy have led to the real fiscal crisis of the State.

2 ) the grotesque capitalizations on the stocks exchanges are a reflection of the fact that this pile of Kerouac paper has nowhere to go.

3 ) and this is where the new danger is: the GAFAM have become fraudulent investment tools – and on top of it they are now mature industries. 

Putting this three points together with the hit on the households – including via the 20 to 30 % debasement of their assets in financial guise – including mortgage and pension plans – and increasing poverty and low salaries with an active force at 62,7 %  – we are now looking at a big depression coming.  

Suppose that the FED backtracks. Then there will be a prolonged recession because the increased liquidities will not find productive investment – especially with the undergoing stupid trade war. Many big corrections will follow each others. Other countries will increasingly stay away from speculative capital especially American. And devise an alternative trading and financial system, even in an ad hoc fashion. 

The only way out now would be to negotiate a new anti-dumping protecting the three components of the « global net revenue » of households – see my « Appeal » in the site http://rivincitasociale.altervista.org – together with a general reduction of the working time – to absorb the impact of robots and AI – and adding to this the solemn reaffirmation of « the most favored nation». Then a new era of unprecedented prosperity will open up.

This should be the New Frontier of the USA if it wants to – peacefully – keep its place in the World. 

Paul De Marco  

Note: The new anti-dumping definition would act as an interpretation rule to all existing free-trade treaties without necessitating long and protracted negotiations leading to a real mutually beneficial fair-trade global environment.

xxx

5 ) « CDS, Market correction, China and public credit »

Quick comment October 11-2018:

See: « ‘Ground Zero’ – Will The Dollar Shortage Kick Off The Next Financial Crisis?» by Palisade Research ., ed, 10/10/2018 – 14:54, via Adem Tumerkan of Palisade-Research.com https://www.zerohedge.com/news/2018-10-10/ground-zero-will-dollar-shortage-kick-next-financial-crisis

See also the perceptive article « Has The Derivatives Volcano Already Begun To Erupt? » by Tyler Durden Wed, 10/10/2018 – 13:20 Authored by David Goldman via The Asia Times, https://www.zerohedge.com/news/2018-10-10/has-derivatives-volcano-already-begun-erupt

This second article on CDS is right on. Therefore, in my view, it is just a correction of the exposure via CDS. But it affects mainly American institutions – and big foreign banks and institutions involved in the USA, hence, in part, their own Central banks, hence the credit line swaps. Can this lead to an explosion of the CDS chain? Probably not, even though Dodd-Frank was badly watered down by Trump. This is simply because big banks can easily offset CDS with other CDS, at least within the US. It is just writing gimmicks for the biggest banks (jeux d’écriture ). In EM countries linked to the US – eg. Argentina – the crisis is already permanent. It started a few years ago with the systemic reverse trade when the FED started tapering. The EM’s people pay but the world financial system does not feel it, indeed it profits from it.

The interesting thing is that this will accelerate the decline of the World dominance of the US dollar. Slowly because neither Japan nor China will unload massively their T Bonds …, as trade and economic exchanges shift to non-dollar areas. Especially if these areas adopt a strict distinction between money and credit and public credit with new bilateral credit lines extended to reorient commerce and economic flows. See my article « Private and Public central banks » in http://rivincitasociale.altervista.org . Note the difference between my mutually beneficial credit lines swaps – that re-orient and equilibrate trade – and the FED’s version, which is aimed at keeping foreign central banks in its sphere of dominance but meanwhile getting interest dutifully paid on on the credit lines!!!

China, Russia and others should develop my version of credit lines swaps to re-orient trade and economic flows and China should quickly step in to keep the IMF out of Pakistan, a country which does not deserve to be enslaved by a declining IMF.

Paul De Marco.

XXX

6 )  See : « Bill Bonner: “America’s Economy Is On A Suicide Mission” » by Tyler Durden Sat, 09/15/2018 – 19:15 https://www.zerohedge.com/news/2018-09-15/bill-bonner-americas-economy-suicide-mission

Here is a nice quote « Financial Anarchy

Trade barriers raise prices. Higher prices mean higher inflation rates and higher interest rates. Higher interest rates mean the feds will have to pay more to finance their higher deficits, which the very same POTUS has given us.

Last month, the feds borrowed $214 billion. They spent $433 billion, of which $32 billion was on interest on the national debt.

In other words, half of what they spent was borrowed. And as interest rates rise to the Fed’s target, that $32 billion will turn into $50 billion a month. Annualized, that’s $600 billion a year – or approximately two months’ worth of tax receipts.

And when the next recession comes… watch out.

Deficits will widen from $1 trillion to $2 trillion. The government debt will soar to $30 trillion. And the interest – at 4% – will take up tax receipts from January through April.

It’s as if a kind of financial anarchy had been loosed upon the land. No one knows exactly what to make of it… or what to expect.

But as their uncertainty increases, their convictions harden…

One side believes we are headed to Heaven and buys. The other sees Hell plainly written on the ticket and sells. We will see where we end up. »

Xxx

Commenti disabilitati su Inoltriamo: « A SOSTEGNO DEL SINDACO DI RIACE, LUCANO, NASCE COMITATO A SAN GIOVANNI IN FIORE », 17 ott. 2018

Vedi (con la richiesta di diffondere ampiamente): https://m.facebook.com/story.php?story_fbid=1846227232156755$id=100003084888435

(Sul tema, rimando alla « Categoria » Migrazioni di questo medesimo sito. )

L’appuntamento del gruppo promotore del « Comitato cittadino a sostegno di Mimmo Lucano, contro il razzismo e il decreto sicurezza » è fissato per il venerdì 19 ottobre 2018 alle ore 17:30 presso l’Agriturismo Cascina di Fiore in località Olivaro.

Oggi, 17 ottobre 2018, leggiamo che il Sindaco Lucano ha ritrovato la libertà ma al costo del « divieto di dimora ». Sarà la mia ignoranza dei processi e delle sentenze italiane ma devo ammettere che è la prima volta in vita mia che leggo una cosa simile, cioè che un uomo libero non può più abitare in casa propria. L’Articolo 14 della Costituzione recita che « Il domicilio è inviolabile » mentre la Costituzione garantisce a tutti i cittadini i diritti fondamentali individuali e sociali, incluso la dignità e la sicurezza della persona. In modo ancillare, chi paga le spese causate al Sindaco con questo divieto di dimora? (1)

Se la giustizia segue il suo corso, come dovuto, ci auguriamo che i magistrati sapranno tenere conto del fatto che il Sindaco Lucano ha messo su piede un sistema di accoglienza diffusa considerato un modello al livello internazionale. Oltre a rispettare la dignità dei soggetti accolti e accoglienti, l’accoglienza diffusa messa in atto a Riace risulta altamente produttiva in termini di posti di lavoro creati ed in termini di sviluppo locale. Non una cosa da poco in una Regione periferica abbandonata dal Centro che esibisce un tasso di occupazione di poco più del 40 % … Speriamo, in oltre, che sapranno elogiare il Sindaco Lucano per avere saputo tenere le mafie fuori dell’accoglienza sul territorio a lui affidato dalle sue elettrici e dai suoi elettori. Credo che tutta la Comunità internazionale, incluso le Agenzie specializzate dell’ONU, la pensano in modo simile. Come pure la stragrande maggioranza delle Europee/i, delle Italiane e degli Italiani. La giustizia non deve solo essere giusta, deve anche esibire tutte le apparenze della giustizia.

Credo che la problematica, oggi drammaticamente sottolineata dal caso Lucano, si pone per moltissimi gruppi già impegnati, in modo pulito e cittadino, nel settore dell’immigrazione e dell’accoglienza. Se i flussi migratori possono momentaneamente diminuire – al prezzo di migliaia di morti supplementari nel Mediterraneo – non possono essere prosciugati per fiat governativo. Tutti i paesi civilizzati hanno una politica di immigrazione e di accoglienza, incluso l’Italia. Usualmente, la netta distinzione tra immigrazione e sicurezza va da se. Nel caso del nostro Paese dobbiamo anche tenere conto del fatto che nel 2017 e nel 2018 abbiamo subito una perdita demografica netta annua di oltre 100 000 persone. Questo è un vero e proprio suicidio demografico. Non è nemmeno una buona idea economica visto che, mutatis mutandis, il PIL aumenta con l’aumento della demografia. Oggi, i migrati residenti in Italia contribuiscono fortemente a pagare le pensioni degli Italiani. (2)

Con la dovuta fiducia nella giustizia, sarebbe il caso di auspicare 10, 100, 1000 Comitati cittadini a sostegno di Mimmo Lucano in Calabria e nell’Italia intera.

Il Sindaco Lucano, con il suo cuore e con le sue mani pulite e aperte a tutta l’Umanità, rappresenta il meglio della nostra Regione martoriata da tanti arcaismi mentali, istituzionali ed altri, da tanti vizi e da tante complicità. Non so altrove, ma nella nostra cultura avita, ed in particolare quella della nostra Magna Grecia, l’ospitalità è un dovere sacro. Trova conferma nella legge naturale – il « diritto delle genti » del nostro Giambattista Vico –, nella nostra Costituzione, incluso l’Articolo 10 relativo al diritto di asilo, come pure nei Trattati internazionali firmati dalla nostra Repubblica, nata dalla Resistenza.

La nostra Repubblica deve difendere i suoi interessi superiori ma non potrà farlo senza dimostrare di essere esemplare sulla questione della difesa dei diritti umani fondamentali.

Paolo De Marco, 17 ottobre 2018.

NOTE:

1 ) « Mimmo Lucano ha lasciato Riace », Domenico Lucano, al centro, dopo la decisione del Riesame. Dopo la revoca dei domiciliari e il divieto di dimora. Non si conosce la sua destinazione. De Magistris e Orlando: vieni da noi, Di ALESSIA CANDITO, 17 ottobre 2018 https://www.repubblica.it/cronaca/2018/10/17/news/riace-209160653/?ref=RHPPLF-BH-I0-C8-P3-S1.8-T1

Vedi pure: « Le mani delle coop nere sul business dei migranti »

di Andrea Palladino – Raphaël Zanotti (*) http://contropiano.org/news/politica-news/2018/10/10/le-mani-delle-coop-nere-sul-business-dei-migranti-0108363 ; e « Il decreto insicurezza, contro migranti e lavoratori » di Alessandro Avvisato http://contropiano.org/altro/2018/10/05/il-decreto-insicurezza-contro-migranti-e-attivisti-0108241

2 ) « INPS, cresce ancora il precariato. Boeri: “Immigrati cruciali per sostenibilità” » Prosegue lo scontro a distanza fra il presidente dell’Inps e il ministro dell’Interno Salvini su migranti e sostenibilità del sistema previdenziale. https://quifinanza.it/lavoro/inps-cresce-ancora-il-precariato-boeri-immigrati-cruciali-per-sostenibilita/207025/?ref=virgilio

Vedi pure: « Cala la popolazione e sale la mortalità. Ma non è un caso… » di Redazione Contropiano http://contropiano.org/news/politica-news/2018/02/08/cala-la-popolazione-sale-la-mortalita-non-un-caso-0100621

Commenti disabilitati su Commento rapido : Solidarietà all’esemplare Sindaco Lucano di Riace

( 8 ottobre 2018, vedi:

« Riace. Il discorso di Mimmo Lucano, letto in piazza », di Mimmo Lucano http://contropiano.org/news/politica-news/2018/10/08/riace-il-discorso-di-mimmo-lucano-letto-in-piazza-0108296

Aggiornamento 6 ottobre 2018 : Dal 1 gennaio al 6 ottobre 2018 ci furono 1777 morti accertati tra i migranti nel Mediterraneo, vedi http://missingmigrants.iom.int/region/mediterranean )

Re : « Riace, Lucano: “Agli arresti per reato di umanità”. Il prefetto lo sospende da sindaco », 4 ottobre 2018, in https://www.repubblica.it/cronaca/2018/10/03/news/mimmo_lucano-208023168/?ref=RHRS-BH-I0-C6-P2-S1.6-T1

(Vedi pure:

1 ) « Arresto Lucano, sabato ( 6 ottobre 2018) una grande manifestazione a Riace », in https://lacnews24.it/cronaca/arresto-lucano-sabato-grande-manifestazione-riace_64581/

2 ) Il bello libro di Tiziana Barilà « Mimì capatosta: Mimmo Lucano e il modello di Riace », 2017, Fandango Libri, s.r.l.

3 ) La Categoria « Migrazioni » in questo medesimo sito.)

Si parte dal principio che un governo che ha ottenuto la maggioranza in Parlamento ha il diritto di decidere la politica di immigrazione e di sicurezza che desidera, sempre comunque nel rispetto dei diritti fondamentali individuali e sociali garantiti dalla nostra Costituzione, dalla UE e dalla Dichiarazione Universale dei Diritti Fondamentali Individuali e Sociali, senza dimenticare il Diritto del mare. La legge, uguale per tutti, va rispettata anche se è dovere dell’Opposizione e dei cittadini, oltre alle istanze garanti, verificarne la legalità costituzionale e la legittimità. L’Opposizione ha il sacro diritto di critica all’interno e fuori del Parlamento, incluso la presentazione di leggi diverse. La disubbidienza civile, esercitata in modo pacifico, è ordinariamente giudicata legale, come dimostrano alcuni precedenti anche in Italia. Dare assistenza a persone in pericolo rimane un sacro dovere di civiltà e una nostra più belle usanza mediterranea.

Stupisce che nella Locride la priorità si diventata l’arresto domiciliare e la messa sotto accusa del Sindaco Mimmo Lucano. Questo accanimento è comunque anteriore al governo attuale.

Stando ai fatti tali che enunciati nell’articolo qui commentato sembra che le accuse ritenute siano due: « favoreggiamento dell’immigrazione clandestina e attribuzione illecita di appalti. »

Per questi presunti reati, io sarei piuttosto d’avviso che il Sindaco Lucano dovrebbe ricevere una Medaglia al Merito per il suo spirito civile e per le sue iniziative esemplari, riconosciute al livello internazionale, che onorano la Calabria e il nostro Paese.

Per quello che riguarda le due cooperative incaricate con la raccolta differenziata della spazzatura, con l’uso di due asinelli, rappresentano in realtà un esperimento di grandissimo valore tanto per la sua efficienza nelle piccole nostre strade, quanto per l’efficienza ecologica, per il contributo di sociabilità e per l’apporto turistico. In tanti comuni della nostra Regione le performance della raccolta differenziata sono fortemente diminuite dal costo proibitivo, sopratutto per i nostri borghi, degli attrezzi moderni necessari. La soluzione di Riace risulta economicamente vantaggiosa in tal modo che sembra difficile che il bando non sia lecito. Comunque per quello che riguarda i beni comuni si dovrebbe imporre per legge cooperative e enti pubblici, eliminando così il problema alla base. Si sottolinea che nella nostra Regione i bandi ai privati sono spesso causa di infiltrazione mafiosa. Non vorrei, in particolare in Calabria, che i sforzi per prevenire tali infiltrazioni siano visti come reati …

Per quello che riguarda il favoreggiamento dell’immigrazione clandestina, la legge non può essere retroattiva né fare astrazione del contesto : in effetti, il Sindaco Lucano, in un contesto di gestione spesso mafiosa dell’immigrazione e di non applicazione effettiva delle leggi vigenti da parte delle Autorità, mise su piede l’unico modello accettabile. Un modello fondato sull’umanità e sull’accoglienza diffusa, ideato per garantire la sicurezza pubblica. Dunque senza lo spettacolo desolante dei lager – vero « business dell’immigrazione » come dimostrato dai magistrati trai i quali Gratteri – e degli migranti abbandonati a loro stessi nelle stazioni, nelle strade ecc., in una UE che rimette illegalmente in causa la libertà fondamentale di circolazione all’interno delle sue frontiere.

Ovviamente, la legge va applicata. Ma non può mai essere applicata in astrazione delle altre leggi esistenti, incluso i diritti dei migranti ad essere trattati con dignità e con la garanzia di accesso ai dovuti ricorsi giuridici una volta sul suolo della Repubblica italiana, incluso le nostre navi militari o civili, sopratutto in una Italia che con Giambattista Vico teorizzò il « diritto delle genti », cioè la legge naturale moderna.

Tutto il resto non è nemmeno disobbedienza civile ma dovere del sindaco di palliare in modo costruttivo le mancanza tra l’altro illegali dello Stato – ad esempio l’arrivo in ritardo dei fondi. Ritardo che, in realtà, dovrebbe dar luogo al versamento degli interessi e forse anche al risarcimento dei danni causati.

Sarebbe il caso di proporre al Sindaco Mimmo Lucano di candidarsi come Governatore della Calabria alla testa di una lista civica alternativa (1) composta da tutte le forze che desiderano ridare dignità e sviluppo socio-economico e culturale alla nostra Regione.

Paolo De Marco.

1 ) Una lista fondata sulla Costituzione e la demo-crazia, ad esempio come proposto qui : http://listacivicasgf.altervista.org

Commenti disabilitati su PRIVATE OR PUBLIC CENTRAL BANKS : How to defeat speculative and economic attacks. September 21, 2018

In praise of public central banks managing public credit.

Content:

How to resist a speculative attack: a decentrating thought case study not far removed from actual facts. (In praise of Montesquieu’s « Les lettres persanes ».)

Introduction

How do private capitalist Central banks work?

How did the public capitalist Central Bank work?

How should a socialist Central Bank work?

The inanity of the capitalist Fiscal Consolidation Path.

Notes.

XXX

How to resist a speculative attack: a decentrating thought case study not far removed from actual facts. (In praise of Montesquieu’s « Les lettres persanes ».)

Imagine the following situation. The Ugly Empire realises that its own demise is approaching rapidly. The time of reckoning knocks at the door. But it desperately tries to deny the ineluctable outcome.  Its leaders are experts, or so they think, at provoked crisis management. Given that some 66% of international exchanges are still denominated in the Ugly Empire’s currency, they start revisiting the Volcker-Reagan’s strategy. The FED raises interest rates while the Treasury launches huge tax cuts and humongous military spending. This will ignite reverse carry trade and massive outflows of currency from the Emerging Markets to the Ugly Empire. It will also lead to the explosive rise of the Ugly Empire’s debt.

As with the original counter-reform, this strategy is bound to fail simply because the inflow of currency does not go into productive activities; indeed, this time, the speculative structure of the Ugly Empire and other markets will bring this cycle to an end even faster but without any prospect for a comprehensive Plaza Accord. Moreover, the Ugly Empire’s Establishment knows that military spending displays a very poor economic Multiplicator, especially when you buy many costly gadgets from foreign countries like Israel.  It knows this at least since the Report from the Iron Mountain, written long before the ex-chancellor Willy Brandt analysed the benefits of « peace dividends ». Originally the strategy had been thought of as a way to preventively control over-reproduction. In a nation which flashes fake full-employment with an active force fallen to 62 % of the total, this is far from rational. Furthermore, the disruption in EM will hit harder those go-between countries that bought into the so-called Washington Consensus. (On the counter-reform launched by Volcker-Reagan in 1979-1982 see my « The socio-economic consequences of MM. Volcker, Reagan and Co » in the Category « Another America is possible » in  http://rivincitasociale.altervista.org/another-america-possible-feb-1-2017/  )

Something more sanguine was needed. With the help of the Empire’s top Ugliest of Men – they cherish Nietzsche’s terminology, one of their Little Brothers’ Grand Master – they come up with a plan: they will pitilessly destroy all potential military and economic rivals. The top 4 Ugliest of Men from the Financial Center are charged with the economic war offensive. Their new designated « enemy » are the set of 66 or so Fatalist and Quietist countries. Now it is the turn of the X country to be subjected to an economic attack.

The plan is as devilish as it is simple. Start shorting massively the currency of the designated victim. It will quickly be forced to devalue pushing a  sheepish Central Bank to raise interest rates dramatically. This will impact strongly on the victim’s capacity to finance its public and private debts, part of it denominated in the currency of the Ugly Empire. The Ugly Empire expects the victim to try to defend the value of its own currency by depleting its currency reserves in a vain attempt to sustain its exchange rate. Not even the Ugly Empire’s Central Bank could do this any longer given the current hegemonic and global speculative financial context in which private banks sit on mountains of « money » that can be moved with a simple click. Failing to sustain the exchange rate, the X country would thus be quickly obliged to call in the IMF for help. This will subject it to the known IMF conditionalities and consequently to bloody austerity measures, namely drastic reductions of public spending and wall-to-wall privatization of all there is to privatise. In short, what they just succeeded doing in present day Greece under the grotesque pitre Tsipras and his servile government.

As the massive shorting would devalue the currency, the Ugliest of Men would come back and buy massively into the depreciated currency in preparation for the big privatization round. They are of the kind who takes no prisoners. Hence, as the massive shorts unfold, they slap heavy tariff duties on imports from the victim. This is done because the currency devaluation might have been partly offset by more competitive export from the victim country.

Except that this time around the strategy failed miserably. To start with, the X country never thought that speculative finance, based on « credit without collateral » and on the Ugly Empire’s Fiat to turn it into a worldwide legal tender, was really ethical. Its financial laws and customs are different. Lately it also realised that the Ugliest of Men’ textbook is more worthless than the Kerouac Rolls on which its Imperial currency is printed. It finds the plan to buy real assets produce by real work with quasi-toilette paper even more unethical and arrogant.

As the X’s currency devalues, strict capital controls are swiftly imposed taking into account the basic import/export needs. This is very efficient because it protects its foreign currency reserves and in one simple move defeats the whole Ugliest of Men’ strategy. Knowing that the already suffered deterioration of the currency together with the effects of the capital controls render access to – speculative – capital markets more onerous, it displays its scientific understanding of the discipline by quickly shifting to public credit.

Instead of uselessly playing with the interest rates, the Central Bank can manage money and credit supply by modulating the prudential ratios according to needs. It can do so even more precisely by functionally linking public banks to their specific sectors and industries in order to respect the sectoral asymmetric proportionality needed to avoid the usual sectoral expansion/contraction induced by unregulated private investments. In such a fashion it ensures a more harmonious economic growth. Furthermore, with a moderate prudential ratio a public bank can domestically finance both the public and the para-public debts, thus protecting the government’s budgetary margin as well as the public and private investment possibilities. Keeping these debts out of the speculative international market is the only way to keep them rationally low and to finance them without ruining the State’s coffers. These measures would keep the economy going.

Having been de facto designated as an « enemy » country, it equally understood that its reliance on the Ugly Empire’s currency as its main trading currency now acts as a dangerous Trojan Horse. But other trading partners do exist that can quickly provide almost all the goods and services the Ugly Empire can provide. Yet, the wise X country never equated the Ugly Empire’s leaders with its citizens. Though it has to protect itself, it has never been the kind to throw oil on the fire.

Knowing the difference between money and credit and knowing the role of credit in international exchanges, the X country and its new economic partners clearly understand that one does not need to already own a foreign currency to trade in that currency. This illusion was mainly derived by the Ugly Empire’s ability to link its own currency to the international value denomination of oil and other raw materials. In effect, currency swaps could be used. They would not to be used to vainly defend the exchange rate but in a more innovative fashion. Currency swaps would better be destined to offer bilateral lines of credit for import/export. These lines of credit waiting to be realised in real exchange values through trade in goods and services can very well substitute to the role played by already accumulated reserves of foreign currencies.

Credit is an anticipation of effective production so the amount of currencies needed for these swaps can be simply printed out, although the spending will have to be subjected to rigorous and quarterly auditing to avoid inflationary pressures and corruption. These lines of credit will smoothly reorient trade and potentially lead to a trade and payments equilibrium, especially as the bilateral lines of credit will have been preliminary calculated to meet specific production and consumption needs. A strict bilateral equilibrium is not necessary; rigidity should be avoided. The necessary flexibility can be afforded simply through the negotiation of the convertibility of at least part of the lines of credit into a basket of currencies – for instance a ruble and renminbi basket to which could later be added the euro and the yen. Later a real chamber of compensation could be devised within a truly reformed IMF or, more likely, at the beginning, outside it.

The Ugliest of Men are also pitilessly stupid, just like the Merchant of Venice. And so, they were bewildered because the X country did not play by their textbook. Never mind the fact that Nietzsche’s had warned them not to take themselves seriously the baseless and pretentious – nobelised – narrative craps they churn out for the ordinary use of the « rubbles » – pardon, the masses of citizens. They nonetheless noticed that the apt modulation of the Central Bank prudential ratios which the X country used instead of resorting to the usual useless and stupid hikes of the guiding interest rates, has freed up some 4 to 5 billion in gold reserves. They thus quickly attempted to grab this back by twisting the arm of the governor of the still independent Central Bank. The latter complied and uselessly raised the already high interest rates even higher. But by now the X country had soundly defeated the first wave of the attack and was prepared to quickly defend its economy and its national sovereignty. The Central Bank governor was sternly reprimanded and warned while a dozen billion loan from a friendly Fatalist and Quietist country was secured to further keep the Ugly Empire’s dominated IMF at bay.

The rest will be history. The economic and military diversification process triggered by the imbecilic and typical short attack will proceed. A policy of peaceful cooperation with regional and like-minded countries will be pursued, perhaps with the aim of developing a mutually beneficial regional fair-trade and exchange area. Indeed, the region is potentially rich because of its important supplies of oil and other raw materials and because of its demography. The population is young and already highly educated. It only needs to shed its imperial subordination to « take-off »  – to paraphrase the poor mainstream W.W. Rostow -, economically, scientifically and culturally.

Above all, the X country has taught the world an invaluable lesson in international political economy and in national dignity. The Tango country had done the same when it kept speculative finance and vulture hedge funds at bay, thus quickly lowering its national public debt to around 8 % of its GDP, the first time in its history. Its debt is now exploding « once again » because the present government is merely a « willing » little brother domestic to the Ugly Empire and to its Ugliest of Men of speculative finance. The Carnival country together with other hemispheric nations and notably with the once Sacrificed Pacific Neighbor, are now « on the road » again, walking alongside the current Tango’s leaders.

It is hoped all countries will ponder over this thought case study not too far removed from actual facts.

Introduction

What is the legitimate cost of money and credit? It is not determined by the « market » in the guise of interest rates but rather the opposite. Risk does not enter into the equation: no one asks individual with a pathological « acquisitive mind »  to take risks at the expense of the general interest. Capitalist banking and finance, especially in the current hegemonic speculative form, is nothing but a dramatic ludopathy. The phrases « casino economy » and « vooddo economics » are apt descriptions. Innovation is radically different from this sort of gain-oriented gambling at the expense of the Community and existed long before the advent of capitalism as well as in post-capitalist socialist societies. R&D is no longer an individual endeavor and it supposes pure and applied research teams as well as publicly organised funding.

The sole legitimate cost of money and credit is what it takes to produce and circulate them: namely administrative cost. The rest is just a systemic capitalist monetary exploitation added upon the exploitation already suffered by all employees at any level in the productive labor process. With publically ran and managed money and credit, the administrated interest rate merely covers these administrative costs. Providing credit to the sectors, industries and enterprises is done through functionally specialised public banks, thanks to the modulation of reserve ratios by the public Central Bank according to the sectoral needs determined by a Central Planning subjected to a genuine « socialist democracy ».

The starting point of any worthy and scientific analysis is the distinction between money and credit. Money is the mass of the means of exchange that acts as a general equivalent. This mass is both necessary and sufficient to allow all the economic exchanges in a stationary or dynamic economic system. In a situation of full-employment the money mass necessary is equal to the « real salary mass ». In a situation characterised by unemployment the necessary and sufficient money mass is equal to the « social salary mass », namely the real salary mass of the active population plus the revenues afforded to the unemployed for their maintenance. (1)

What is credit? Credit is an anticipation of production by way of the creation of a extra-volume of the national means of exchange otherwise necessary and sufficient, namely money. Its modern form is the capitalist form. This is because the Capitalist Mode of Production is based on the accumulation of capital. However, assuming as a thought experiment – Koyré – a closed Enlarged Reproduction system, or dynamic equilibrium in mainstream parlance, it is clear that credit anticipation is only possible thanks to the preliminary advance made by labor to capital as demonstrated in my essay entitled Tous ensemble of 1998. (2) The general equivalent in the form of credit eventually needs to transform into real production of Means of production (MP) and Means of consumption (CN) through investments. Usually, some 60 % of any investment goes into salaries thus boosting economic growth. In an open Enlarged Reproduction system, credit equally implies imports and thus it has the potential to accelerate economic growth, provided the exchange rate corresponds to the real micro-economic productivity of the national enterprises and to the real macro-economic competitiveness of the Social Formation, thus keeping the external balances in equilibrium.

How do private capitalist Central banks work?

Their function is above all an ideological one. It is to maintain the formal equality among all capitalists, big or small, what Marx called « capitalist communism ». This also explains why, even before Fisher’s « income stream » falsification, the bourgeoisie did not distinguish between money and credit. It manages both in function of the maximum capitalist accumulation possible. To do so, while attempting to maintain some control over monetary policy, it devised monetary aggregates (3), mainly M1, M2 and M3. The salary masses, both real and social, are equal to M1 plus a small part of M2 – mainly individual bank deposits. The remaining part of M2 and M3 make up credit. (4) Interestingly with the confirmation of the hegemony of speculative finance the FED stopped calculating M3 …

The original confusion between money and credit colours everything else. For instance, the so-called quantitative theory of money which originated with Irving Fisher is nothing else than a puerile tautology: it equated the total amount of « money » with the total value of goods and services. It therefore borrows its main operating tool, that is to say « inflation » in the singular, from David Hume’s « monetary rain ». Given the original equation, if more money would rain from the sky, the prices of existing goods and services would automatically go up, causing inflation. However, Hume himself would be almost right only if you were to assume that capitalist credit plays a marginal role. Which was exactly the case in the society he lived in.

Exchange is always bilateral, a good or service being traded against « money ». But it is also a chain whose aim it is to guarantee the reproduction and the enlargement of the system by insuring households’ consumption and productive consumption. The bourgeois monetary tautology implies a further futility: the circulation of money which is evaluated in the time it takes « money » to leave the banks and return to them.

The capitalist bank’s operation is based on the fractional system embodied in its prudential ratio. Today this prudential ratio, the ratio between banks’ assets in reserve and the credit – M2 and M3 – it can lend on that basis, is very low. Not even counting the colossal shadow banking, a capitalist bank can now lend around 30-40 Euros for any euro it has in reserve. Not only huge volumes of credit are created with small amounts in reserve, but this induces a cumulative spiral assuming that most banking investments will return a profit, which in turn positively affects the bank’s reserves and increases it lending ability. We all intuitively understand that such private banks will spend much ingenuity in finding new investment possibilities. For instance, the housing market that led to the subprime crisis with the excuse of the « House Effect » which so-called « maestro » Greenspan irrationally borrowed from the fallacious « Wealth Effect » proposed by Pigou against Keynes. Both the « maestro » and poor Pigou had no clues on the importance of fair revenue distribution for real economic growth.

Before the abrogation of the Glass Steagall Act – 1933-1999 – the four pillars of banking and finance namely deposit banks, investment and commercial banks, insurance companies and credit unions, were functionally segregated. This insured some kind of connection with the real economy. To be sure the « invisible hand », operating through the actions of the investment and commercial banks, caused speculation bouts and recurrent crises. But the end of the Trade cycle usually led to an healthy purge of the system and also to further fusions in the financial sector. Such recurrent crises, not to be confused with structural crises opposing over-production and under-consumption, are the only cybernetic self-regulating mechanism operating within the Capitalist Mode of Production (CMP). It is congruent with the ideology of free competition.

As soon as this functional segregation is legally washed away, we witness the rise of the so-called « universal bank » that characterises the epoch of hegemonic speculation. The moment private banks are considered « too big to fail » the capitalist competition rule withers away and with it the only feed-back regulation mechanism known to the CMP. Banks must then ruinously be saved by State’s bailouts, including through the silent but permanent and tax-deducible bank provisioning.

The speculative slippery slope does not end there. It pollutes and cannibalises the whole economic realm. It does so by instituting itself as an autonomous economic sector. It now accounts for over 9 % of the GDP of the United-States. Given that it needs much less fixed capital, its greater but fake productivity induces greater volumes of profit. It equally determines the relative size of the other sectors and industries and dictates the exchange value logic – relative prices – of the whole economic system. This is the fundamental reason why the speculative Return Over Equity – ROE – is structurally unsustainable. This weakening of the real economy basis fatally leads to the real Fiscal Crisis of the State.

Money and credit being merrily confused as « money », the capitalist Central Bank fancies that it can rigorously manage the right amount of « money » that is presumed by its quantitative monetary theory. To do so it simply uses an « acceptable » inflationary target which, however, it is unable to scientifically define. Indeed why would 2 % be more acceptable than 1 % or 3 % ? Imagine this determination being done within a FED that stopped calculating M3! Of course, if the CPI – the consumer basket of the working population – is your main inflation criterion and if you live in a « credit without collateral » speculative world, perhaps even with a Central Bank in a Quantitative Easing mode, the enduring low inflation rate will only reflect the end of the « rising expectations » and the impoverishment of the laboring masses, while the stock market and speculative assets will reach bubbling heights. To enforce this unprecedented regression, the Trilateral Commission equally advised the strict control of the « flows of communication » in the optic of a « return » to the « deference to – self-nominated- Authorities ». In academia, especially in the « dismal discipline », this amounts to the reintroduction of the Inquisition’s Index. Later preventive wars, openly aimed at the preventive destruction of all economic and military rivals, were added to the same Samuel Huntington’s « strategic hamlets ». There remains only to add the official declaration of Apartheid which was finally and shamelessly done by Israel on July 19, 2018 (see  https://www.nytimes.com/2018/07/19/world/middleeast/israel-law-jews-arabic.html )

Of course, capitalist economics is a set of constantly revised kitchen recipes based on an initial set of falsifications. As demonstrated, these aim at maintaining some semblance of plausibility to the bourgeois « dismal science ». (5) This is the only role played by the incestuously chosen pseudo-Nobel Prizes in economics. The problems do not end with the management of inflation. This « capitalist communism » leads the bourgeois Central Bank to devise a trick to ensure formal equal access to « money » from all capitalists big or small. It does this through its main interest rates. Interest rate is just a percentage but the return vary greatly when you consider volumes. 1 % on $ 100.00 brings $ 1 but $ 10 on $ 1000.00. In the Darwinian capitalist game, it pays to be big.

This formal equality is the crucible in which recurrent Trade Cycles, hence cyclical crises, are forged. In times, it ineluctably leads to structural socio-economic crises. This is because the capitalist allocation of resources is driven by egoistic private motivations – i.e. the « acquisitive mind » – which is supposed to optimise the general good through the unexplained operation of the « invisible hand ». (6) To point out only the obvious, if this were true, many essential basic needs would not go unanswered among systemic huge and unecological capitalist waste, as is patently the case today. Check for instance the « ecological footprint » of a working poor compared with that of Al Gore or of his over-represented class brothers and sisters. (7) Simple and Enlarged Reproduction, or if you prefer stationary and dynamic equilibrium, do suppose a socio-economic structure.

By definition, you always get a capitalist economic equilibrium but always an ex post one. In times of crisis, it simply turn out to be a « cemetery equilibrium ». This means that the equilibrium is not necessarily positive, for instance during a textbook recession. Even in case of economic GDP growth it can go hand-in-hand with the impoverishment of a great chunk of the active and inactive population. This is partly demonstrated by the increasing inequalities accompanied by greater levels of relative and absolute poverty within Western nations. See for instance the annual reports from Oxfam, although, lately, even the IMF, the OECD and the EU Commission feign to notice.

This evidence is made crystal clear when you refer to the Equations of Simple and Enlarged Reproduction: when investments – credit –  do not respect the sectoral symmetric proportionality of the two main Sectors, namely Capital Goods and Consumers Goods, you fatally end up with sectoral expansion in one sector and sectoral contraction in the other. This can be mediated somewhat by the external – trade and payment – balances, but this mediation often leads to even bigger crises. (8)

How did the public capitalist Central Bank work?

The public capitalist Central Bank used the same structures and criteria mentioned above. But it did so with two huge differences because it kept part of the available credit strictly public.

First, public credit can greatly activate public and private investments at a very low cost. This is because a public bank does not need to run after short-term, quarterly profits just to keep shareholders happy. It must however ensure the amount of profit necessary to pay for its administration cost and for some provisioning. It thus relies on a much safer prudential ratio. The public Central Bank was backed by some sort of Indicative and Incitative Planning that relied on strategic State enterprises, especially in those sectors corresponding to essential public services and infrastructures. Furthermore, it relied on the functional segregation of the four main pillars of banking and finance, namely deposit banks, investment and commercial banks, insurance companies and credit unions. When conjunctural crises struck, the investment and commercial banks were likely to be more impacted. If they failed, this would help purge the system and through the concentration-centralisation of capital – or fusion process – this would eventually lead to a new cycle of growth. Provided they were not small shareholders, ordinary people and households were not ruined especially if their « global net revenue » was covered by a decent portion of institutional savings financed through their « differed salary ». (9) As Lord Beveridge had already made clear after the First World War, such social safety nets do act as  very efficient counter-cyclical mechanisms in time of crisis.

Second, a public Central Bank was the only player in charge with the financing of the public and the para-public debt. By keeping this debt out of the claws of the private banks, particularly the dozen primary banks which now dominate the financial markets – and the currently privatized Central Bank – it kept public and para-public debt very low. Before the privatisation of the Banque de France in 1973 – the so-called Pompidou-Giscard-Rothschild law -, the French public debt was around 20 % of GDP. It remained at that level up until 1980 (http://france-inflation.com/dette_publique_france_1950.php ) In 2017 it was at 96.8 % and growing. The same applies to Italy, where the subordination of Bankitalia to the Italian Treasury ended in 1981-1983. In 1945 the Italian public debt was at 32 % of GDP; it barely reached 37 % in 1970, 50 % in 1973 – with the oil shock -, but quickly shot up to 74 % in 1984 thanks to the deleterious impact of the monetarist counter-reform launched by Volcker-Reagan in 1979-1982. (10) It is now at 132 % of GDP in an Italy promised by its national and European masters to a Greek-Tsipras’s kind of future. The later explosive trends are mainly due to the monetisation of this debt on the financial markets through the intermediation of the primary so-called  « universal banks ».  Instead of borrowing from the Central Bank at close to zero interest, capitalist countries now borrow at high interest rates from private and often stateless banks which are refinanced at low – and now even negative – rates by their own privatized Central Banks, such as the ECB and the FED.

The rapid post-war reconstruction of European nations was based on this public model. The descriptively termed Glorious Thirty Years – Jean Fourastié – did however correspond to a general advancement in economic, social, scientific and cultural areas. Given that we were dealing with a mixed economy with private credit, the unfolding of the Trade cycles – conjonctural crises – come to no surprise. The longer so-called Kontratiev cycles should be interpreted as the « medium duration » of economic waves prosperity associated with the massification of earlier know scientific and technological innovations. This was particularly the case with the post WWII intermediary sectors which were still labor-intensive, for instance the automobile and domestic utilities sectors.

One legitimate question that could be asked concerns what was then called during the late 60s and early 70s « stagflation », namely a high level of inflation conjugated with an economic stagnation. We should point out that the socio-economic logic of the Welfare State rested on the socio-economic coherence of the Social Formation. Basically Keynes’s General Theory was stationary and assumed domestic coherence. The same can be said of Harrod’s dynamic version of it. As we know, Keynes was defeated by H. White at the Savannah conference when the Bretton Woods system was devised. Keynes’s currencies compensation chamber needed to facilitate international trade was pushed aside in favor of the Bretton Woods Gold-Dollar Standard. More ominously the Bretton Woods system was quickly followed by the Havana Conference and by the formation of GATT under the hegemony of the USA, then obsessed by the Cordell Hull’s philosophy that condemned any « beggar-thy-neighbor »  initiatives.

The GATT completed the new World Order ran by the Twin Sisters housed in Washington in front of the Federal Reserve, namely the IMF and the BIRD. In short, the gradual dismantlement of tariff barriers through GATT increased the economic contradiction inherent to the private credit system, particularly as Western Central banks had to deal with the supremacy of the US dollar as the main world reserve currency. The end of the Bretton Woods system – in 1971/1976 – and the ushering of free-float made this task even more difficult and almost impossible to manage as soon as the Central banks started to become independent from the Treasury.

The impact of the dismantlement of the tariff barriers together with the increased independence of the Central Bank destroyed the domestic coherence of the various Social Formations. The increasing extroversion of the Economic Multiplicator destroyed the – poorly Keynesian but political – credence in the so-called « pump-priming » making it more difficult to insure a resilient economic growth rate compatible with increased social redistribution, even in the form proposed by the Vietnam-worried President Johnson with his Just Society.

Yet, these mounting economic difficulties were going hand-in-hand with the bourgeois economist puerile understanding of inflation. The collective agreement mechanism had played a great role in furthering vital internal social demand during the Glorious Thirty Years. The US industrial relations experts, even such as Dunlop and Kerr, understood the mechanism as one that could co-opt most labor leaders while stabilizing production relations during the whole duration of the collective agreement. Workers’ organisations, especially those inherited from the CIO before it merged with the AFL, rightly understood the mechanism as a redistribution mechanism. The practice was slowly establish to generalise the collective agreement won in one big corporation to the whole industry and possibly to the entire economy. The standard of living of the American workers increased dramatically especially as retraining, formation and security on the work place became main issues to be included in the collective agreements.

Both tendencies were totally misunderstood by bourgeois economics and eventually led to the hysteric reaction of an Establishment which could not make sense of stagflation. The Trilateral Commission sold to the imperial opening of the whole world gained pre-eminence with its gospels of « strategic hamlets » and « ending of the rising expectations » of the citizens, read of the workers, thus ushering the way to the worse reactionaries like von Mises and the Chicago Boys fresh from their philo-Semite Nietzschean « return » cold-bloodily implemented in post-Allende’s Chile. « The World is our oyster » as the ineffable US business leaders said while preparing to strangle Mexico after the peso crisis of 1982, check Global Reach, by Barnett and Müller (1974)

How should a socialist Central Bank work?

A socialist Central Bank knows that money and credit are general equivalents which smooth economic exchanges. It knows that the sole universal equivalent is the exchange value of the labor power. It also knows the basic structure of stationary and dynamic equilibria –see my Synopsis of Marxist Political Economy for details. Following Marx, in scientific parlance we talk of the Equations of Simple and Enlarged Reproduction. (SR-ER)

On that basis the socialist Central Bank can easily determine the salary masses which will define the amount of money necessary and sufficient, given its rotations, to allow all the exchanges implied by the given SR-ER situation. Theoretically speaking the real salary mass will suffice in time of full-employment. However, even in time of full-employment, some production processes are seasonal and others are discontinuous, so that a frictional unemployment is likely to be present. Add to these the periods of inactivity happening « through no fault of our own » as the working organisations used to call them. The Central Bank will cover the needs of the unemployed issuing the amount of money necessary for their upkeep, although a well-planned socialist country will prefer to use a fringe of over-employment, coupled with re-training, as well as continuous education. In these two later cases, a different sharing of the « social surplus value » will be implied. This will entail the implementation of a different « epoch » of redistribution. As far as the financing of unemployment stricto sensu is concerned, it will transform the real salary mass into a social salary mass. The ratio social salary mass/real salary mass gives the rate of structural inflation which in my Tous ensemble I called « civilised inflation ». (11) This slight distortion can be dealt with easily by revisiting the Fisher Chain.

A socialist country will use various forms of institutionalised savings simply because the labor force works to insure what Karl Polanyi called its « livelihood ». This includes its reproduction inside households of various sizes. Humanity is a species based on sexual reproduction. Its revenue must therefore be enough to sustain the labor force during its activity and inactivity – unemployment, maternity-paternity leaves and allowances, sickness, accidents, old age etc. The necessary saving will be institutionalised in various Social or Workers’ Funds. Furthermore, individual saving accounts will also be organised. This is because the consumption of the daily basket of goods requires less money than the buying of durable goods such as cars, domestic utilities etc., or than some leisure expenses such as trips and so on and so forth. The payments out of these funds should be treated as money. The easier way to show this is to underline the three components of the « global net revenue » of households namely « individual salary », « differed salary » and the fiscal portion on the paycheque which corresponds to the financing of universally accessible public services and infrastructures.

This provides the Scientific hence Marxist Quantitative Theory of Money and Credit. On this scientific basis, the management of money and of monetary phenomena – inflation, deflation – is plain foreword at least if you suppose a closed system. We will talk about the rate of exchange in a moment.

The socialist Central Bank knows that credit is an anticipation of production in the scientifically elucidated context provided by the SR-ER Equations, that is to say by national planning. It knows that the sheer possibility of such a monetary anticipation is only possible thanks to the advance labor power always makes to production since labor power is always paid after the completion of the production process. It is easy to understand if you assume a closed system: you cannot buy commodities that have not already been produced. At most you can order them. In concrete terms, a space for credit intermediation is opened in the form of stocks and of installed over-production capacities – on average the use of installed production capacity amounts to roughly 80 % – and also in the form of import/export. Indeed any economic system presupposes a World Economy. In turn this raises the thorny question of the proper rate of exchange of the national currency.

Furthermore, a socialist or civilised society relying of State planning will strive for an harmonious dynamic reproduction in order to secularly raise the standard of living of its citizens. It will do so according to a list of social priorities collectively determined with recourse to « socialist democracy » (12) In a socialist or civilised society all the profits, that is to say the amount over and above the individual salary, are controlled collectively thus forming the « social surplus value ». A part goes into institutionalised saving and the rest is allocated according to the priorities chosen in the optic of dynamic reproduction, that is economic growth. This allocation is mediated by the appropriate exchange means, namely credit. The Central Bank will then be flanked by specialised Public Banks closely tied through Central Planning to their specific sectors and industries.

It quickly becomes apparent that on this basis alone the endogenous reproduction rate will be steady but slow. It will mainly depend on the increase of productivity. Which is not necessarily endogenous. The main example is Stalin’s brilliant planning: having access to the European Financial System, it chose to export agricultural goods to earn the foreign currencies necessary to buy the machines, technologies, patents and know-how – including the hiring of foreign engineers – to accelerate the industrial and scientific development of the USSR. Collectivisation of the countryside was launched simultaneously to alleviate some of the pressure on the peasants. The collectivisation was accelerated thanks to State-owned Machines Cooperatives and thanks to the emphasis given to the production of Means of production for Means of production. This crucial phase of the class struggle took a specific constitutional form. (14)

Socialist import/export strategies fall into the legitimate use of credit in so far as it optimises the insertion of the Social Formation in the International Division of Labor. But the credit available always depend of the available « social surplus value » and on its allocation to satisfy planning priorities. This allocation will be done directly without any financial lever. In general a sane socialist money and credit management has no need for the banking fractional system. We will see below when exceptions are called for and for what purpose.

Because no nation can live long above its means, the rate of change of the national currency will then need to correspond to the macro-economic competitiveness, knowing that micro-economic productivity strongly depends on strictly public social services and infrastructures. For instance, the Private Health Care in the USA wastes more than 19 % of GDP for the sole benefit of Big Pharma and private insurance companies while still leaving some 40 million citizens without coverage. (see « Where does it hurt ? » in  https://www.youtube.com/watch?v=BtWy14AGDiU . Unfortunately, since then, the UK as emulated the US health model …) In the EU, at least before the current rampant privatisation, universally accessible public Health Care systems did only cost around 9 % of GDP. Because of the potency of regimes based on mutualism and abstracted from the logic of capitalist profit, the same applies to Pension Funds, car insurance etc., etc.

In a socialist system the rate of interest as it would apply to consumers’ demand – eg., saving accounts or various kind of loans – would simply be fixed by the Central Bank. Such vehicles are necessary to buy durable goods. It would follow two main criteria: a ) offsetting the rates of inflations and b ) insuring the minimum return needed to run these services. The same would apply for credit.

To understand credit as a formal anticipation in reference to Enlarged Reproduction, one must take into account the whole duration of the reproduction cycle. We know that there is a installed overcapacity of production – including overtime from the labor power – one that is strongly influenced, whenever possible, by the introduction of the greatest productivity; and we know that there are domestically available stocks. In a closed system, credit anticipation would simply accelerate and fluidify the realization of planning priorities over the whole duration of the Plan. It permits to switch resources accordingly thus in part away from the enterprises where the profit originated while keeping an accurate accounting ledger of the exchanges.

The main function of socialist credit is to smoothly and rapidly operate this switching of resource allocations. Hence the ratio credit/assets of the banks would be relatively low. The anticipations translate for 60 % – on average – in a real salary mass while the rest is made of by orders for machines, services etc. Some stocks would remain unsold and in need to be recycled. Socialism implies the rigorous implementation of Ecomarxism, namely: a) recycling taking into account the whole life cycle of the products; b) natural and artificial renewal of needed resources; c ) search for substitutes that can be massified ; d ) production of agricultural surpluses – « agricultural sovereignty » as opposed to the deleterious « agricultural security » based on global trading on speculative markets – and the production of energy surpluses since any modern economic activity – including data processing – is a transformation endeavor, hence a very energivorous one. (15)

In an open economy in which import/export would concretize the insertion of the Social Formation within the World Economy the same logic applies. A socialist economy does not need a suzerain international currency which pretends to dominate the global financial world. Such a choice fatally leads to the capitalist switching from agriculture and industry to services, notably financial speculative services; it fatally leads to ineluctable crises both cyclical and structural. But here too credit can smooth and accelerate the complexion of the Plan. But its function would better be carried out in the context of a planned international division of labor.

This means that trading partners can open for each other the necessary bilateral lines of credit knowing that these nominal amounts would be fully realised in exchanged goods and services. Such currency swaps for lines of credit would simply have to be printed out by the Central Banks and their planned realisation be followed by rigorous accounting and regular auditing. To avoid rigidity – there is no need to necessarily reach a bilateral equilibrium – a Compensation Chamber would have to be devised based on the possible convertibility of a national currency into a common vehicle or basket, for instance a democratically reformed SDR or its equivalent. Given the known origin of the various inflations and given the low and administrated rates of interest, the rigorous accounting will be done in real exchange values, thanks to the revisiting of the Fisher Chain.

The essential underlying logic of money and particularly of credit is what Marx called the realisation of exchange value.  Since productivity can be integrated coherently within the Equations of SR-ER and since these Equations lead to a Marxist quantitative theory of money and credit, socialist accounting does not need to be done in the form of a material net product, it can now be done in terms of real exchange values with the extra degree of flexibility provided by socialist credit. I have called for scientific, hence Marxist, statistics based on the SR-ER Equations, for instance in my Synopsis of Marxist Political Economy.

In such a planned system indebtedness in the capitalist sense would cease to exist: there would only be amounts of credit anticipated with the planned knowledge of their effective realisation in real exchange values. In a mix World Economy – for instance as was the case for the Eastern Bloc until 1989-1991 – things were more complex because the indebtedness occurred with capitalist-imperialist powers. The unexpected Volcker-Reagan counter-reformist financial roller-coaster with its double digits interest rates is one of the main cause of the collapse of the Eastern Bloc: it suddenly had to repay higher debts denominated in foreign currencies without full access to the World Market for its import/export needs. Now however, there exist many countries capable to provide access to most raw material and sophisticated goods. In such a multilateral context, the lines of credit strategy is useful for all countries, socialist or not, in so far as they can reorient and diversify international exchanges with an eye on the main external balances. Similarly, it can easily defeat any pretence to the extraterritoriality of the laws of any putative imperialist power.

The inanity of the capitalist Fiscal Consolidation Path.

A long economic cycle had been initiated in 1979-1982 with the Monetarist counter-reform launched be Volcker-Reagan. It was based on the emergence and consolidation of speculative capital as the hegemonic form of capital. It substituted the hegemony of internationalised productive capital embodied in the MNCs. This cycle is now coming to a dramatic end. The real fiscal crisis of the State is its hallmark, the privatisation of credit, above all the monetisation of the public and para-public debts abandoned in the hands of so-called « universal banks », is its main vehicle. Today, with the instauration of the Monetarist Minimal State and with the various QE causing a drastic « credit crunch » – and failing to cause inflation, let alone the hyperinflation expected by Bernanke to shift the burden of debt financing on creditor countries such as China and Japan (16 ) – any average citizen would quickly realise the crass inanity of the so-called « crowding out » effect of public investments and of the public financing of the State’s debt.

Today, the so-called Fiscal Consolidation Path is used as an ideological tool. It takes over where the monumental tax expenditures had left. As we know the hundreds billions grated in the form of tax expenditures to capital without the least counterpart for the labor force, except longer working hours for less pay and increased precariousness, have a nice aspect to them: once granted they disappear from the budget – and media – radars. In effect, they were used to legitimize monetarist austerity policies, mainly the linear cuts in safety nets and wall-to-wall privatization, with the fake promise that balanced budgets would reduce the weight of debt financing and return the economy on a growth trajectory.

The Fiscal Consolidation Path plays the same role but in a coordinated European setting. It comes with disciplinary tools and eventual penalties attached. This is another instance of « capitalist communism » since all States, big or small, are uniformly prescribed the same horse remedies. While the dismantlement of their Social or Welfare States is been completed and while the « palestinisation » of the Western and World proletariat is being savagely enforced by the new Crusaders and putative « masters of the Earth » – pace Suetonius -, the citizens are told that transitory austerity measures will soon restore the economic health of the system. Once again, as explained in my « Nietzsche as an awakened nightmare » (17), these philo-Semite Nietzscheans aim at forcefully returning Humanity to a new slavery and a new domesticity. Some regions of the EU, like Calabria and Sicily, are already close to that stage.  In Calabria, for instance, the active labor force is officially estimated at around 42 %  in a system characterised by the wall-to-wall corruption involving all institutions including the justice and police apparatuses; it has fallen to some 62 % in a United-States which brags of full-employment, in the sense of the ILO which counts as employed any person who has worked one hour during the last labor survey!

Debunking the Path is easy. It suffices to shade away the Marginalist regime phraseology and look at the bottom line:

  1. GDP accounting has been modified in 2014 in the EU in order to add some 3 % to 3.5 % growth thanks to an evaluation of drugs, prostitution, fiscal evasion, some armaments and some aspects of the so-called immaterial economy such as copyrights. Hence, if a country announces a 1 % GDP growth it really suffers a real negative growth of 2 % to 2.5 %.
  2. This fake GDP growth lowers the weight of the public debt but, of course, does nothing in helping lowering it in reality. Note that the volume of public debt in most EU countries continues to rise. Moreover, this fake GDP growth does not contribute much to significantly raise fiscal revenues.
  3. In this deleterious context any containment of the public debt, let alone any lowering of it, rests on linear cuts in public spending – social safety nets and infrastructures – and on wall-to-wall privatisation conducted years after years. This is done without ever thinking to ask the rich and the private banks, which have been bailout out at a tremendously high cost on the public purse – 17 % of the GDP of the EU according to Trichet who understood that the indirect cost was much higher -, to contribute a little more to State Revenues. The only exception is the actual drive to get some 3 to 5 billion from the GAFAM; such razor-hedge budget management is intended to give the impression that the Fiscal Compact diktats are respected. One does not discontinue a program that works as expected, right? Indeed, the real purpose of the Path is to legitimise this philo-Semite Nietzschean regression and savage dispossession of sovereign citizens and nations.
  4. Suppose the financing of the debt amounts to 4 % of GDP and that the primary surplus – namely the fiscal surplus in abstraction of this debt financing – amounts to 1.5 %, then the real deficit will be around 2.5 %. This last ratio can be lowered somewhat through various gimmicks, always una tantum, the most hideous being the repatriation of evaded capital outflows enticed by a very low taxation rate, the whole thing amounting to a legal fiscal pardon for the rich. This is a rather strange way to fight the huge and systemic fiscal evasion problem (it is around 300 billion euros in Italy) let alone dubious fiscal optimisation using various tax havens and Head Offices than exist only on paper.
  5. Note that the privatisation of State enterprises brings una tantum sum of money to the State coffers but ineptly sacrifices the annual dividends which would accrue to the Treasury year after year as the sole or main owner. Often, before privatisation kicks in, State enterprises are intentionally pushed in the red to better legitimise the privatisation process with the excuse that private interests would be more efficient in insuring the right « market » price. No private buyer would ever buy an enterprise that is not profitable. Furthermore, the market is now prisoner of a short-term logic and counts on the State to provide the long-term capital needed to finance the necessary infrastructures which they then pretend to run according to the magical market logic. This logic transforms public services beneficiaries into clients who are worthy of respect only in proportion to their ability to pay. The same goes for geographical and urban peripheries. Furthermore, the logic of profit and dividends maximisation leads to financial and material catastrophes and hence to the need for the State to socialise the losses. Think of Enron but also of Fukushima – the plant had to be closed 5 years before the tragedy occurred; the closing did not happen because of the juicy dividends derived from an already paid-off costly equipment. The same deleterious logic leads to sacrifice routine maintenance and security costs as with the recent Morandi bridge in Genova.

This Fiscal Consolidation Path must promptly be thrown into the waste basket where it belongs. Together with the economics textbooks that inform it.

In the present context, a EU country could instead chose to pay the penalty of 0.3 % instead of subjecting to the deleterious Path logic. This would be done to entice other EU members to renegotiate the Treaties especially because the Fiscal Compact, the Two and Six Packs and the Fiscal Consolidation Path that goes with them did not get a unanimous approval yet. On that basis a real budgetary policy could be devised over a medium term. While the instruments would be different the objectives remain, namely lower the debt and restore the budgetary margin necessary to finance the strategic intervention of the State in the economy in view of supporting the welfare of all citizens. The main planks would necessarily have to be :

1 ) The creation of a public bank with an initial average financial lever – say of 40 to 1 – which will be lowered gradually. In this way, the management of money will be left to the ECB for the time being while the State will recover an important role in the creation and management of public credit. This will immediately defeat any speculative attack exercised in the EU through the manipulation of the spread by the big players in the « market ». Later the CDS on the public debt will have to be abolished because they are obviously absurd: the States, not the primary banks, ensure the legal tender of their respective currency. This public bank would help finance the public debt on the primary market at close to zero interest rate. It will also slowly buy and simply cancel the public debt already traded on the secondary market. This will free budget room. Similarly, it can provide public credit to rebuild the infrastructures and the industrial core and even provide the co-financing necessary to use the EU structural funds. EU resistance should be pushed aside and ignored especially by those countries which contribute more than they get back. Furthermore, Article 107 of the Tufe provides for many exceptions to the vague rule of « free competition ».

Remember that competition was already in the Rome Treaty and it was compatible with a strong State’s economic and social regulation. Furthermore, as originally proposed in my Tous ensemble, the reduction of the public debt could also be achieved through swaps debt-against-investment. A public consortium backed by the public bank would manage and guarantee the swaps while launching the necessary and long overdue public works – including the maintenance of roads, bridges, railways, sewers and sewers treatment plants. The swaps would in effect restructure the public debt over a 20/30-Year period at a low but secure return. Banks’ non performing loans could qualify but with a correct readjustment of their values, thus cleaning up part of the mess and consolidating the banking sectors with more tangible assets. No private banks should be rescued any longer without their nationalisation. This is because this nationalised public recapitalisation costs only a fraction of the present recurrent and ineffective bailouts. Just look at the crassly inept and costly Atlante Italian Fund devised to rescue relatively small financial speculative institutions which once were Banking Foundations with strong ties to local industry.

2 ) The legal reduction of the work week. This could be done at a low cost by reorganising useless exonerations to capital and many existing and inefficient social assistance programs. In fact, this is exactly what Prime Minister Jospin’s « gauche plurielle » did: its RTT did cost only 23 billions but quickly lowered unemployment to 8 % – from more that 10 %; it almost completely eliminated the deficit in Social Security thanks to the full social contributions levied on the paycheques while extending the Health-care coverage; it equally increased fiscal revenues thus providing more room for  socio-economic and cultural budgetary measures and it helped lower the public debt to 59 % of GDP, namely one percentage point lower than the Maastricht Criterion. It did so in only two years. We also did witness the spontaneous emergence of a sociology of leisure time. Conversely the economic and fiscal crisis became evident as soon as the rightwing government which followed the « gauche plurielle » suffered a loss of more than 250 000 jobs after having dilapidated most of the earlier gains. Note that any version of the so-called Citizen guaranteed revenue is nothing else than a cynical joke simply because it would have to be financed year-after-year out of dwindling general fiscal revenues. Instead the RTT creates full-time jobs and is thus based on the virtuous capital circuits induced by the institution of a strong « differed salary ».

3 ) A new anti-dumping definition based on the three components of the « global net revenue » of the households must be negotiated. The time is right given the unfolding of Trump’s tariff war. As a matter of fact, this trade war could be interpreted as a chaotic groping toward this new worldwide necessity. While this new anti-dumping would be negotiated it could be anticipated on the national or better European scale by a small import surtax intended to protect national and EU-based enterprises of all origins. Given the global organigramm of transnational firms it could also work as a targeted addition on the usual Value Added Tax duly excepting the components which enter into the ordinary consumers’ basket as well as publishing and arts. This would be legitimate since Social Affairs remain an exclusive competence of EU member States. The new definition of anti-dumping would simply be used as a interpretation norm of existing free-trade arrangements turning them into fair-trade deals without any arduous re-negotiations. As we know the WTO processes require unanimity!!!

Paul De Marco

Copyright © La Commune Inc, September 21, 2018

Notes:

1 ) For the full theory see my Synopsis of Marxist Political Economy in the Livres-Books section of my old site www.la-commune-paraclet.com . The term « maintenance » comes from the works induced by the Tennessee Valley Authority during the Great Depression. They noticed that after two years of unemployment, aside from the expected lack of working experience, workers accumulated serious physiological lacunae which made them unfit for the required available jobs. This realization led to the FDR’s New Deal Programs, including Public Works. It also provided the origin of modern bourgeois statistics soon elaborated upon by Kuznets.

2 ) See same section, same site.

3 ) See https://en.wikipedia.org/wiki/Money_supply

4 ) The hegemony of speculation led to what I called « credit without collateral ». With the permanent bailouts of private banks, including the continuous provisioning deducted from taxation, the capitalist Central Bank’s lending propensity has become the de facto prudential ratio of the current banking system. This trend was aggravated after the abrogation of the Glass Steagall Act – 1999 – and after Treasury Paulson’s bailout of US banks – systemic and allegedly « too big to fail » – after March 2008. See « Credit without collateral » and « The Treasury and the FED » in the International Political Economy section of www.la-commune-paraclet.com . For an update see « The FED dilemma » in the Category « Another America is possible » in http://rivincitasociale.altervista.org

5 ) These falsifications are exposed in my Methodological introduction and in my Synopsis of Marxist Political Economy freely accessible in the Livres-Books section of by old site www.la-commune-paraclet.com

6 ) A quick résumé is provided in the article entitled « The pseudo-economic science of the bourgeoise: Here is why we should quickly change economic paradigm », in http://rivincitasociale.altervista.org/the-pseudo-economic-science-of-the-bourgeoisie-here-is-why-we-should-quickly-change-economic-paradigm/

7 ) In the section « Commentaires d’actualité » in www.la-commune-paraclet.com , see the note on Al Gore, in « Le Pacte Hulot: Nouvelle écologie du charbonnier ou pacte socio-économique communiste?  (voir aussi Al Gore) ».

8 ) For a shortcut see the « Annex » of the article referenced in Note 6 above.

9 ) The « global net revenue » of households include the capitalist individual salary, the differed salary – mainly pension and UI – and the transfers to households in terms of universal access to social services and public infrastructures. This characterised the so-called Welfare State and its more virtuous capital circuits. This socio-economic organisation was mostly dismantled by the Monetarist and neoliberal Minimal State and its destructive anti-dumping definition enshrined by all free-trade deals and by the WTO. This definition excludes any reference to labor rights or to minimal environmental criteria. For a résumé see my « Foreword » and « Appeal » in http://rivincitasociale.altervista.org/test/

10 ) For the statistical series on the Italian public debt from 1861 to 2015 see  https://umbvrei.blogspot.com/2015/06/italia-pil-e-debito-pubblico-dal-1861.html . For Volcker-Reagan, see my « The socio-economic consequences of MM. Volcker, Reagan and Co » March 1985, in the Category « Another America is possible » in  http://rivincitasociale.altervista.org/another-america-possible-feb-1-2017/ . The fabricated crisis was caused to allow imperial crisis management in order to comfort the American World dominance after the official collapse of the Bretton Woods System during the Jamaica Summit in 1976. Trump’s policies follow the same crisis triggering followed by crisis management logic. However, this time around the fallacious promises of « asymmetric interdependence » – Joseph Nye and Kehoane and al – have been washed away and new economic rivals have emerged in a multilateral military and economic world. Planned systems relying on public credit can sustain trade and speculative attacks with relative ease.

11 ) In my Tous ensemble I addressed one other main type of inflation, imported inflation.

12 ) On Socialist democracy namely the crucial power exercised by citizens over the allocation of resources and over the production-reproduction process, which goes much further than the fake bourgeois pluralist representative democracy, see the chapter entitled « Pour le socialisme cubain » in my Pour Marx, contre le nihilisme – Livres-Books section of www.la-commune-paraclet.com – as well as the section « For Cuban Socialism » in the same site. For civil rights see the second part of this book, in part translated in English as far as the Marxist Theory of Psychoanalysis is concerned (idem), as well as the essay « Mariage, unions civiles et institutionalisation des moeurs » in the Pink section of the same site.

13 ) Along side with my concept of « global net revenue » of the household, I use this formulation « social surplus value » to define the specific socialist character of the extraction of surplus value in a Socialist Mode of Production. It is derived from Marx’s crucial initial analysis of Social Funds offered in the Critique of the Gotha Programme. ( see https://www.marxists.org/archive/marx/works/1875/gotha/ )

14 ) Stalin did not have a Marxist theory of productivity fully integrated within the Equations of SR-ER. I was the first to demonstrate this theory – which eliminates many falsifications notably the fake so-called Transformation problem or the puerile emphasis on the Tendency of the rate of profit to fall which confuses rate for volume and even fails to notice the following chapter in Book III of Capital which addresses the reverse tendency! Making a difference between rate and volume is the only way to make sense of what Lenin following Marx called the Laws of motion of capital, notably the centralisation and concentration tendencies. Stalin took the Schema of Simple Reproduction – it remains coherent with identical v/C and pv/v in Sector I and Sector II – as its working model. He opted pragmatically for the introduction of the highest productivity whenever possible – including buying technologies from outside – and adjusting the planning discrepancies along the way. His choice was right: my coherent insertion of productivity changes in the SR-ER Equations – sectorally different v/C and pv/v – proves that the SR Equations do not need to be thought of as a special case. This explains the tremendous success of Stalin’s planning. All was thrown out by Lieberman/Khrushchev’s revisionism. See on the subject my  « Marginalist socialism, or how to chain oneself in the capitalist cavern » in https://www.la-commune-paraclet.com/EPIFrame1Source1.htm#epi

15 ) On Ecomarxism see the Introduction and the Appendix of my book III entitled Keynesianism, Marxism, Economic Stability and Growth (2005). The concept is more elaborate than the simplistic and Marginalist idea of a circular economy.

16 ) See for instance « The FED finally admits: it does not know what inflation is », in http://rivincitasociale.altervista.org/the-fed-finally-admits-it-does-not-know-what-inflation-is-sept-21-2017/  See also « The FED DILEMMA » in the International Political Economy of www.la-commune-paraclet.com  ; see also « Another America is possible » in http://rivincitasociale.altervista.org/another-america-possible-feb-1-2017/  Note that Bernanke’s doctoral research was on inflation – in the singular.

17 ) See the Livres-Books section o www.la-commune-paraclet.com . See also « Heidegger, the intimate corruption of the soul and of human becoming. » , idem.

Posted: 27th settembre 2018 by rivincitasociale in Another America is possible, Economia
Commenti disabilitati su

In praise of public central banks managing public credit.

Content:

How to resist a speculative attack: a decentrating thought case study not far removed from actual facts. (In praise of Montesquieu’s « Les lettres persanes ».)

Introduction

How do private capitalist Central banks work?

How did the public capitalist Central Bank work?

How should a socialist Central Bank work?

The inanity of the capitalist Fiscal Consolidation Path.

Notes.

XXX

(The decision was taken to make this text available without waiting; a new reading will be done as soon as possible)

How to resist a speculative attack: a decentrating thought case study not far removed from actual facts. (In praise of Montesquieu’s « Les lettres persanes ».)

Imagine the following situation. The Ugly Empire realises that it own demise is approaching rapidly. The time of reckoning knocks at the door. But it desperately try to deny the ineluctable outcome. They are experts, or so they think, at provoked crisis management. Given that some 66% of international exchanges are still denominated by the Ugly Empire currency, they start revisiting the Volcker-Reagan’s strategy. The FED raises interest rates while the Treasury launches huge tax cuts and humongous military spending. This will ignite reverse carry trade and massive outflows of currency from the Emerging Markets to the Ugly Empire. It will also lead to the explosive raise of the Ugly Empire’s debt.

As with the original counter-reform, this strategy is bound to fail simply because the inflow of currency does not go into productive activities; indeed, this time, the speculative structure of the Ugly Empire and other markets will close this cycle even faster but without any prospect for a comprehensive Plaza Accord. Moreover, the Ugly Empire’s Establishment knows that military spending displays a very poor economic Multiplicator, especially when you buy many costly gadgets from foreign countries like Israel.  It knows this at least since the Report from the Iron Mountain, written long before the ex-chancellor Willy Brandt’s take on the benefits of « peace dividends ». Originally the strategy had been thought of as a way to preventively control over-reproduction. In a nation which flashes fake full-employment with an active force fallen to 62 % of the total, this is far from rational. Furthermore, the disruption in EM will hit harder those go-between countries that bought into the so-called Washington Consensus. (On the counter-reform launched by Volcker-Reagan in 1979-1982 see my « The socio-economic consequences of MM. Volcker, Reagan and Co » in the Category « Another America is possible » in  http://rivincitasociale.altervista.org/another-america-possible-feb-1-2017/  )

Something more sanguine was needed. With the help of the Empire’s top Ugliest of Men – they cherish Nietzsche’s terminology, one of their Little Brothers’ Grand Master – it comes up with a plan: they will pitilessly destroy all potential military and economic rivals. The top 4 Ugliest of Men from the Financial Center are charged with the economic war offensive. Their new designated « enemy » are the set of 66 or so Fatalist and Quietist countries. Now it is the turn of the X country to be subjected to an economic attack.

The plan is as devilish as it is simple. Start shorting massively the currency of the designated victim. It will quickly be forced to devalue pushing a  sheepish Central Bank to raise interest rates dramatically. This will impact strongly on the victim’s capacity to finance its public and private debts, part of it denominated in the currency of the Ugly Empire. The Ugly Empire expects the victim to try to defend the value of its own currency by depleting its currency reserves in a vain attempt to sustain its exchange rate. Not even the Ugly Empire’s Central Bank could do this any longer given the current hegemonic and global speculative financial context in which private banks sit on mountains of « money » that can be moved with a simple click. Failing to sustain the exchange rate, the X country would thus be quickly obliged to call in the IMF for help. This will subject it to the known IMF conditionalities and consequently to bloody austerity measures, namely drastic reductions of public spending and wall-to-wall privatization of all there is to privatise. In short, what they just succeeded doing in present day Greece under the grotesque pitre Tsipras and his servile government.

As the massive shorting would devalue the currency, the Ugliest of Men would come back and buy massively into the depreciated currency in preparation of the big privatization round. They are of the kind who takes no prisoners. Hence, as the massive shorts unfold, they slap heavy tariff duties on imports from the victim. This is done because the currency devaluation might have been partly offset by more competitive export from the victim country.

Except that this time around the strategy failed miserably. To start with, the X country never thought that speculative finance, based on « credit without collateral » and on the Ugly Empire’s Fiat to turn it into a worldwide legal tender, was really ethical. Its financial laws and customs are different. Lately it also realised that the Ugliest of Men’ textbook is more worthless than the Kerouac Rolls on which its Imperial currency is printed. It finds the plan to buy real assets produce by real work with quasi-toilette paper even more unethical and arrogant.

As the X’s currency devalues, strict capital controls are swiftly imposed taking into account the basic import/export needs. This is very efficient because it protects its foreign currency reserves and in a simple move defeats the whole Ugliest of Men’ strategy. Knowing that the already suffered deterioration of the currency together with the effects of the capital controls render access to – speculative – capital markets more onerous, it displays its scientific understanding of the discipline by quickly shifting to public credit.

Instead of uselessly playing with the interest rates, the Central Bank can manage money and credit supply by modulating the prudential ratios according to needs. It can do so even more precisely by functionally linking public banks to their specific sectors and industries in order to respect the sectoral asymmetric proportionality needed to avoid the usual sectoral expansion/contraction induced by unregulated private investments. In such a fashion it ensures a more harmonious economic growth. Furthermore, with a moderate prudential ratio a public bank can domestically finance both the public and the para-public debts, thus protecting the government’s budgetary margin as well as the public and private investment possibilities. Keeping these debts out of the speculative international market is the only way to keep them rationally low and to finance them without ruining the State’s coffers. These measures would keep the economy going.

Having been de facto designated as an « enemy » country, it equally understood that its reliance on the Ugly Empire’s currency as its main trading currency now acts as a dangerous Trojan Horse. But other trading partners do exist that can quickly provide almost all the goods and services the Ugly Empire can provide. Yet, the wise X country never equated the Ugly Empire’s leaders with its citizens. Though it has to protect itself, it has never been the kind to throw oil on the fire.

Knowing the difference between money and credit and knowing the role of credit in international exchanges, the X country and its new economic partners clearly understand that one does not need to already own a foreign currency to trade in that currency. This illusion was mainly derived by the Ugly Empire’s ability to link its own currency to the international value denomination of oil and other raw materials. In effect, currency swaps could be used. They would not to be used to vainly defend the exchange rate but in a more innovative fashion. Currency swaps would better be destined to offer bilateral lines of credit for import/export. These lines of credit waiting to be realised in real exchange values through trade in goods and services can very well substitute to the role played by already accumulated reserves of foreign currencies.

Credit is an anticipation of effective production so the amount of currencies needed for these swaps can be simply printed out, although the spending will have to be subjected to rigorous and quarterly auditing to avoid inflationary pressures and corruption. These lines of credit will smoothly reorient trade and potentially lead to a trade and payments equilibrium, especially as the bilateral lines of credit will have been preliminary calculated to meet specific production and consumption needs. A strict bilateral equilibrium is not necessary; rigidity should be pushed aside. The necessary flexibility can be afforded simply through the negotiation of the convertibility of at least part of the lines of credit into a basket of currencies – for instance a ruble and renminbi basket to which could later be added the euro and the yen. Later a real chamber of compensation could be devised within a truly reformed IMF or, more likely at the beginning, outside it.

The Ugliest of Men are also pitilessly stupid, just like the Merchant of Venice. And so, they were bewildered because the X country did not play by their textbook. Never mind the fact that Nietzsche’s had warned them not to take themselves seriously the baseless and pretentious – nobelised – narrative craps they churn out for the ordinary use of the « rubbles » – pardon, the masses of citizens. They nonetheless noticed that the apt modulation of the Central bank prudential ratios which the X country which was used instead of resorting to the usual useless and stupid hikes of the guiding interest rates, has freed up some 4 to 5 billion in gold reserves. They thus quickly attempted to grab this back by twisting the arm of the governor of the still independent Central Bank. The latter complied and uselessly raised the already high interest rates even higher. But by now the X country had soundly defeated the first wave of the attack and was prepared to quickly defend its economy and its national sovereignty. The Central Bank governor was sternly reprimanded and warned while a dozen billion loan from a friendly Fatalist and Quietist country was secured to further keep the Ugly Empire’s dominated IMF at bay.

The rest will be history. The economic and military diversification process triggered by the imbecilic and typical short attack will proceed. A policy of peaceful cooperation with regional and like-minded countries will be pursued, perhaps with the aim of developing a mutually beneficial regional fair-trade and exchange area. Indeed, the region is potentially rich because of its important supplies of oil and other raw materials and because of its demography. The population is young and already highly educated. It only needs to shed its imperial subordination to « take-off »  – to paraphrase the poor mainstream W.W. Rostow -, economically, scientifically and culturally.

Above all, the X country has taught the world an invaluable lesson in international political economy and in national dignity. The Tango country had done the same when it kept speculative finance and vulture hedge funds at bay, thus quickly lowering its national public debt to around 8 % of its GDP, the first time in its history. Its debt is now exploding « once again » because the present government is merely a « willing » little brother domestic to the Ugly Empire and to its Ugliest of Men of speculative finance. The Carnival country together with other hemispheric nations and notably with the once Sacrificed Pacific neighbor, are now « on the road » again, walking alongside the current Tango’s leaders.

It is hoped all countries will ponder over this thought case study not too far removed from actual facts.

Introduction

What is the legitimate cost of money and credit? It is not determined by the « market » in the guise of interest rates but rather the opposite. Risk does not enter into the equation: no one asks individual with a pathological « acquisitive mind »  to take risks at the expense of the general interest. Capitalist banking and finance especially in the current hegemonic speculative form is nothing but a dramatic ludopathy. The phrases « casino economy » and « vooddo economics » are apt descriptions. Innovation is radically different from this sort of gain-oriented gambling at the expense of the Community and existed long before the advent of capitalism as well as in post-capitalist socialist societies. R&D is no longer an individual endeavor and it supposes pure and applied research teams and well as publicly organised funding.

The sole legitimate cost of money and credit is what it takes to produce and circulate them: namely administrative cost. The rest is just a systemic capitalist monetary exploitation added upon the exploitation suffered by all employees at any level in the productive labor process. With publically ran and managed money and credit, the administrated interest rate merely covers these administrative costs. Providing credit to the sectors, industries and enterprises is done through functionally specialised public banks, thanks to the modulation of reserve ratios by the public Central Bank according to the sectoral needs determined by a Central Planning subjected to a genuine « socialist democracy ».

The starting point of any worthy and scientific analysis is the distinction between money and credit. Money is the mass of the means of exchange that acts as a general equivalent. This mass is both necessary and sufficient to allow all the economic exchanges in a stationary or dynamic economic system. In a situation of full-employment the money mass necessary is equal to the « real salary mass ». In a situation characterised by unemployment the necessary and sufficient money mass is equal to the « social salary mass », namely the real salary mass of the active population plus the revenues afforded to the unemployed for their maintenance. (1)

What is credit? Credit is an anticipation of production by way of the creation of a extra-volume of the national means of exchange otherwise necessary and sufficient, namely money. Its modern form is the capitalist form. This is because the Capitalist Mode of Production is based on the accumulation of capital. However, assuming as a thought experiment – Koyré – a closed Enlarged Reproduction system, or dynamic equilibrium in mainstream parlance, it is clear that credit anticipation is only possible thanks to the preliminary advance made by labor to capital as demonstrated in my essay entitled Tous ensemble of 1998. (2) The general equivalent in the form of credit eventually needs to transform into real production of Means of production (MP) and Means of consumption (CN) through investments. Usually, some 60 % of any investment goes into salaries thus boosting economic growth. In an open Enlarged Reproduction system, credit equally implies imports and thus it has the potential to accelerate economic growth provided the exchange rate corresponds to the real micro-economic productivity of the national enterprises and to the real macro-economic competitiveness of the Social Formation, thus keeping the external balances in equilibrium.

How do private capitalist Central banks work?

Their function is above all an ideological one. It is to maintain the formal equality among all capitalists, big or small, what Marx called « capitalist communism ». This also explains why, even before Fisher’s « income stream » falsification, the bourgeoisie did not distinguish between money and credit. It manages both in function of the maximum capitalist accumulation possible. To do so, while attempting to maintain some control over monetary policy, it devised monetary aggregates (3), mainly M1, M2 and M3. The salary masses, both real and social, are equal to M1 plus a small part of M2 – mainly individual bank deposits. The remaining part of M2 and M3 make up credit. (4) Interestingly with the confirmation of the hegemony of speculative finance the FED stopped calculating M3 …

The original confusion between money and credit colours everything else. For instance, the so-called quantitative theory of money which originated with Irving Fisher is nothing else than a puerile tautology: it equated the total amount of « money » with the total value of goods and services. It therefore borrows its main operating tool, that is to say « inflation » in the singular, from David Hume’s « monetary rain ». Given the original equation, if more money would rain from the sky, the prices of existing goods and services would automatically go up, causing inflation. However, Hume himself would be almost right only if you were to assume that capitalist credit plays a marginal role. Which was exactly the case in the society he lived in.

Exchange is always bilateral, a good or service being traded against « money ». But it is also a chain whose aim it is to guarantee the reproduction and the enlargement of the system by insuring households’ consumption and productive consumption. The bourgeois monetary tautology implies a further futility: the circulation of money which is evaluated in the time it takes « money » to leave the banks and return to them. The capitalist bank’s operation is based on the fractional system embodied in its prudential ratio. Today this prudential ratio, the ratio between banks assets in reserve and the credit – M2 and M3 – it can lend on that basis, is very low. Not even counting the colossal shadow banking, a capitalist bank can now lend around 30-40 Euros for any euro it has in reserve. Not only huge volumes of credit are created with small amounts in reserve, but this induces a cumulative spiral assuming that most banking investments will return a profit, which in turn positively affects the bank’s reserves and increases it lending ability. We all intuitively understand that such private banks will spend much ingenuity in finding new investment possibilities. For instance, the housing market that led to the subprime crisis with the excuse of the « House Effect » which so-called « maestro » Greenspan irrationally borrowed from the fallacious « Wealth Effect » proposed by Pigou against Keynes. Both the « maestro » and poor Pigou had no clues on the importance of fair revenue distribution for real economic growth.

Before the abrogation of the Glass Steagall Act – 1933-1999 – the four pillars of banking and finance namely deposit banks, investment and commercial banks, insurance companies and credit unions, were functionally segregated. This insures some kind of connection with the real economy. To be sure the « invisible hand » by means of the investment and commercial banks caused speculation bouts and recurrent crises. But the end of the Trade cycle usually led to an healthy purge of the system and also to further fusions in the financial sector. Such recurrent crises, not to be confused with structural crises opposing over-production and under-consumption, are the only cybernetic self-regulating mechanism operating within the Capitalist Mode of Production (CMP). It is congruent with the ideology of free competition.

As soon as this functional segregation is legally washed away, we witness the rise of the so-called « universal bank » that characterises the epoch of hegemonic speculation. The moment private banks are considered « too big to fail » the capitalist competition rule withers away and with it the only feed-back regulation mechanism known to the CMP. Banks must then ruinously be saved by State’s bailouts, including through the silent but permanent and tax-deducible bank provisioning.

The speculative slippery slope does not end there. It pollutes and cannibalises the whole economic realm. It does so by instituting itself as an autonomous economic sector. It now accounts for over 9 % of the United-States GDP. Given that it needs much less fixed capital, its greater but fake productivity induces greater volumes of profit. It equally determines the relative size of the other sectors and industries and dictates the exchange value – relative prices – logic of the whole economic system. This is the fundamental reason why the speculative Return Over Equity – ROE – is structurally unsustainable. This weakening of the real economy basis fatally leads to the real Fiscal Crisis of the State.

Money and credit being merrily confused as « money », the capitalist Central Bank fancies that it can rigorously manage the right amount of « money » that is presumed by its quantitative monetary theory. To do so it simply uses an « acceptable » inflationary target which, however, it is unable to scientifically define. Indeed why would 2 % be more acceptable than 1 % or 3 % ? Imagine this determination being done within a FED that stopped calculating M3! Of course, if the CPI – the consumer basket of the working population – is your main inflation criterion and if you live in a « credit without collateral » speculative world, perhaps even with a Central Bank in a Quantitative Easing mode, the enduring low inflation rate will only reflect the end of the « rising expectations » and impoverishment of the laboring masses while the stock market and speculative assets will reach bubbling heights. To enforce this unprecedented regression, the Trilateral Commission equally advised the strict control of the « flows of communication » in the optic of a « return » to the « deference to – self-nominated- Authorities ». In academia, especially in the « dismal discipline », this amounts to the reintroduction of the Inquisition’s Index. Later preventive wars, openly aimed at the preventive destruction of all economic and military rivals, were added to the same Samuel Huntington’s « strategic hamlets ». There remains only to add the official declaration of Apartheid which was finally done by Israel on July 19, 2018 (see  https://www.nytimes.com/2018/07/19/world/middleeast/israel-law-jews-arabic.html )

Of course, capitalist economics is a set of constantly revised kitchen recipes based on an initial set of falsifications. As demonstrated, these aim at maintaining some semblance of plausibility to the bourgeois « dismal science ». (5) This is the only role played by the incestuously chosen pseudo-Nobel Prizes in economics. The problems do not end with the management of inflation. This « capitalist communism » leads the bourgeois Central Bank to devise a trick to ensure formal equal access to « money » from all capitalists big or small. It does this through its main interest rates. Interest rate is just a percentage but the return vary greatly when you consider volumes. 1 % on $ 100.00 brings $ 1 but $ 10 on $ 1000.00. In the Darwinian capitalist game, it pays to be big.

This formal equality is the crucible in which recurrent Trade Cycles, hence cyclical crises, are forged. In times, it ineluctably leads to structural socio-economic crises. This is because the capitalist allocation of resources is driven by egoistic private motivations – i.e. the « acquisitive mind » – which is supposed to optimise the general good through the unexplained operation of the « invisible hand ». (6) To point out only the obvious, if this were true, many essential basic needs would not be left unanswered among systemic huge and unecological capitalist waste as is patently the case today. Check for instance the « ecological footprint » of a working poor compared with that of Al Gore or of his over-represented class brothers and sisters. (7) Simple and Enlarged Reproduction, or if you prefer stationary and dynamic equilibrium, do suppose a socio-economic structure.

By definition, you always get a capitalist equilibrium but always an ex post one. In time of crisis, it simply turn out to be a « cemetery equilibrium ». This means that the equilibrium is not necessarily positive, for instance during a textbook recession. Even in case of economic GDP growth it can go hand in hand with the impoverishment of a great chunk of the active and inactive population. This is partly demonstrated by the increasing inequalities accompanied by greater levels of relative and absolute poverty within Western nations. See for instance the annual reports from Oxfam, although lately even the IMF, the OECD and the EU Commission feign to notice.

This evidence is made crystal clear when you refer to the Equations of Simple and Enlarged Reproduction: when investments – credit –  do not respect the sectoral symmetric proportionality of the two main Sectors, namely Capital Goods and Consumers Goods, you fatally end up with sectoral expansion in one sector and sectoral contraction in the other. This can be mediated somewhat by the external – trade and payment – balances, but this mediation often leads to even bigger crises. (8)

How did the public capitalist Central Bank work?

The public capitalist Central Bank used the same structures and criteria mentioned above. But it did so with two huge differences because it kept part of the available credit strictly public.

First, public credit can greatly activate public and private investments at a very low cost. This is because a public bank does not need to run after short-term, quarterly profits just to keep shareholders happy. It must however ensure the amount of profit necessary to pay for its administration cost and for some provisioning. It relies on a safer prudential ratio. The public Central Bank was backed by some sort of Indicative and Incitative Planning that relied on strategy State enterprises, especially in those sectors corresponding to essential public services and infrastructures. Furthermore, it relied on the functional segregation of the four main pillars of banking and finance, namely deposit banks, investment and commercial banks, insurance companies and credit unions. When conjunctural crises struck the investment and commercial banks were likely to be more impacted. If they failed, this would help purge the system and through the concentration-centralisation of capital – or fusion process – this would eventually lead to a new cycle of growth. Provided they were not small shareholders, ordinary people and households were not ruined especially if there « global net revenue » was covered by a decent portion of institutional savings financed through their « differed salary ». (9) As Lord Beveridge had already made clear after the First World War, such social safety nets do act as  very efficient counter-cyclical mechanisms in time of crisis.

Second, a public Central Bank was the only player in charge with the financing of the public and the para-public debt. By keeping this debt out of the claws of the private banks, particularly the dozen primary banks which now dominate the financial markets – and the currently privatized Central Bank – it kept public and para-public debt very low. Before the privatisation of the Banque de France in 1973, the French public debt was at 23 % of GDP. In 2017 it was at 96.8 % and growing. The same applies for Italy, where the subordination of Bankitalia to the Italian Treasury ended in 1981-1983. In 1945 the Italian public debt was at 32 % of GDP; it barely reached 37 % in 1970, 50 % in 1973 – with the oil shock -, but quickly went to 74 % in 1984 thanks to the deleterious impact of the monetarist counter-reform launched by Volcker-Reagan in 1979-1982. (10) It is now at 132 % of GDP in an Italy promised by its national and European masters to a Greek-Tsipras’s kind of future. The later explosive trends are mainly due to the monetisation of this debt on the financial markets through the intermediation of the primary so-called  « universal banks ».  Instead of borrowing from the Central Bank at close to zero interest, capitalist countries now borrow at high interest rates from private and often stateless banks which are refinanced at low – and now even negative rates – by their own privatized Central Banks, such as the ECB and the FED.

The rapid post-war reconstruction of European nations was based on this public model. The badly-termed Glorious Thirty Years – Jean Fourastié – did however correspond to a general advancement in economic, social, scientific and cultural areas. Given that we were dealing with a mixed economy with private credit, the unfolding of the Trade cycles – conjonctural crises – come to no surprise. The longer so-called Kontratiev cycles should be interpreted as the « medium duration » of economic prosperity associated with the massification of earlier know scientific and technological innovations. This was particularly the case with the post WWII intermediary sectors which were still labor-intensive, for instance the automobile and domestic utilities sectors.

One legitimate question that could be asked concerns what was then called during the late 60s and early 70s « stagflation », namely a high level of inflation conjugated with an economic stagnation. We should point out that the socio-economic logic of the Welfare State rested on the socio-economic coherence of the Social Formation. Basically Keynes’s General Theory was stationary and assumed domestic coherence. The same can be said of Harrod’s dynamic version of it. As we know, Keynes was defeated by H. White at the Savannah conference when the Bretton Woods system was devised. Keynes’s currencies compensation chamber needed to facilitate international trade was pushed aside in favor of the Bretton Woods Gold-Dollar Standard. More ominously the Bretton Woods system was quickly followed by the Havana Conference and by the formation of GATT under the hegemony of the USA then obsessed by the Cordell Hull’s philosophy that condemned any « beggar-thy-neighbor »  initiatives.

The GATT completed the new World Order ran by the Twin Sisters housed in Washington in front of the Federal Reserve, namely the IMF and the BIRD. In short, the gradual dismantlement of tariff barriers through GATT increased the economic contradiction inherent to the private credit system, particularly as Western Central banks had to deal with the supremacy of the US dollar as the main world reserve currency. The end of the Bretton Woods system – 1971-1976 – and the ushering of free-float made this task even more difficult and almost impossible to manage as soon as the Central banks started to become independent from the Treasury.

The impact of the dismantlement of the tariff barriers together with the increased independence of the Central Bank destroyed the domestic coherence of the various Social Formations. The increasing extroversion of the Economic Multiplicator destroyed the – poorly Keynesian but political – credence in the so-called « pump-priming » making it more difficult to insure a resilient economic growth rate compatible with increased social redistribution, even in the form proposed by the Vietnam-worried President Johnson with his Just Society.

Yet, these mounting economic difficulties were going hand-in-hand with the bourgeois economist puerile understanding of inflation. The collective agreement mechanism had played a great role in furthering vital internal social demand during the Glorious Thirty Years. The US industrial relations experts, even such as Dunlop and Kerr, understood the mechanism as one that could co-opt most labor leaders while stabilizing production relations during the whole duration of the collective agreement. Workers’ organisations, especially those inherited from the CIO before it merged with the AFL, rightly understood the mechanism as a redistribution mechanism. The practice was slowly establish to generalise the collective agreement won in one big corporation to the whole industry and possibly to the entire economy. The standard of living of the American workers increased dramatically especially as retraining, formation and security on the work place became main issues to be included in the collective agreements.

Both tendencies were totally misunderstood by bourgeois economics and eventually led to the hysteric reaction of an Establishment which could not make sense of stagflation. The Trilateral Commission sold to the imperial opening of the whole world gained pre-eminence with its gospels of « strategic hamlets » and « ending of the rising expectations » of the citizens, read of the workers, thus ushering the way to the worse reactionaries like von Mises and the Chicago Boys fresh from their philo-Semite Nietzschean « return » cold-bloodily implemented in post-Allende’s Chile. « The World is our oyster » as the ineffable Mellon said while preparing to strangle Mexico after the peso crisis of 1982, check Barnett and Müller.

How should a socialist Central Bank work?

A socialist Central Bank knows that money and credit are general equivalents which smooth economic exchanges. It knows that the sole universal equivalent is the exchange value of the labor power. It also knows the basic structure of stationary and dynamic equilibria –see my Synopsis of Marxist Political Economy for details. Following Marx, in scientific parlance we talk of the Equations of Simple and Enlarged Reproduction. (SR-ER)

On that basis the socialist Central Bank can easily determine the salary masses which will define the amount of money necessary and sufficient, given its rotations, to allow all the exchanges implied by the given SR-ER situation. Theoretically speaking the real salary mass will suffice in time of full-employment. However, even in time of full-employment, some production processes are seasonal and others are discontinuous, so that a frictional unemployment is likely to be present. Add to these the periods of inactivity happening « through no fault of our own » as the working organisations used to call them. The Central Bank will cover the needs of the unemployed issuing the amount of money necessary for their upkeep, although a well-planned socialist country will prefer to use a fringe of over-employment coupled with re-training as well as continuous education. In these two later cases, a different sharing of the « social surplus value » will be implied. This will entail the implementation of a different « epoch » of redistribution. As far as the financing of unemployment stricto sensu is concerned, it will transform the real salary mass into a social salary mass. The ratio social salary mass/real salary mass gives the rate of structural inflation which in my Tous ensemble I called « civilised inflation ». (11) This slight distortion can be dealt with easily by revisiting the Fisher Chain.

A socialist country will use various forms of institutionalised savings simply because the labor force works to insure what Karl Polanyi called its « livelihood ». This includes its reproduction inside households of various sizes. Humanity is a species based on sexual reproduction. Its revenue must therefore be enough to sustain the labor force during its activity and inactivity – unemployment, maternity-paternity leaves and allowances, sickness, old age etc. The necessary saving will be institutionalised in various Social or Workers’ Funds. Furthermore, individual saving accounts will also be organised. This is because the consumption of the daily basket of goods requires less money than the buying of durable goods such as cars, domestic utilities etc., or than some leisure expenses such as trips and so on and so forth. The payments out of these funds should be treated as money. The easier way to show this is to underline the three components of the « global net revenue » of households namely « individual salary », « differed salary » and the fiscal portion on the paycheque which corresponds to the financing of universally accessible public services and infrastructures.

This provides the Scientific hence Marxist Quantitative Theory of Money and Credit. On this scientific basis, the management of money and of monetary phenomena – inflation, deflation – is plain foreword at least if you suppose a closed system. We will talk about the rate of exchange in a moment.

The socialist Central Bank knows that credit is an anticipation of production in the scientifically elucidated context provided by the SR-ER Equations, that is to say by national planning. It knows that the sheer possibility of such a monetary anticipation is only possible thanks to the advance labor power always makes to production since labor power is always paid after the completion of the production process. It is easy to understand if you assume a closed system: you cannot buy commodities that have not already been produced. In concrete terms, a space for credit intermediation is opened in the form of stocks and of installed over-production capacities – on average the use of installed production capacity amounts to roughly 80 % – and also in the form of import/export. Indeed any economic system presupposes a World Economy. In turn this raises the thorny question of the rate of exchange of the national currency.

Furthermore, a socialist or civilised society relying of State planning will strive for an harmonious dynamic reproduction in order to secularly raise the standard of living of its citizens. It will do so according to a list of social priorities collectively determined with recourse to « socialist democracy » (12) In a socialist or civilised society all the profits, that is to say the amount over and above the individual salary, are controlled collectively thus forming the « social surplus value ». A part goes into institutionalised saving and the rest is allocated according to the priorities chosen in the optic of dynamic reproduction, that is economic growth. This allocation is mediated by the appropriate exchange means, namely credit. The Central Bank will then be flanked by specialised Public Banks closely tied through Central Planning to their specific sectors and industries.

It quickly becomes apparent that on this basis alone the endogenous reproduction rate will be steady but slow. It will mainly depend on the increase of productivity. Which is not necessarily endogenous. The main example is Stalin’s brilliant planning: having access to the European Financial System, it chose to export agricultural goods to earn the foreign currencies necessary to buy the machines, technologies, patents and know-how – including foreign engineers – to accelerate the industrial and scientific development of the USSR. Collectivisation of the countryside was launched simultaneously to alleviate some of the pressure on the peasants. The collectivisation was accelerated thanks to State-owned Machines cooperatives and thanks to the emphasis given to the production of Means of production for Means of production. This crucial phase of the class struggle took a specific constitutional form. (14)

Socialist import/export strategies follow into the legitimate use of credit in so far as it optimises the insertion of the Social Formation in the International Division of Labor. But the credit available always depend of the available « social surplus value » and on its allocation to satisfy planning priorities. This allocation will be done directly without any financial lever. In general a sane socialist money and credit management has no need for the banking fractional system. We will see below when exceptions are called for and for what purpose.

Because no nation can live long above its means, the rate of change of the national currency will then need to correspond to the macro-economic competitiveness, knowing that micro-economic productivity strongly depends on strictly public social services and infrastructures. For instance, Private Health Care in the USA wastes more than 19 % of GDP still leaving some 40 million citizens without coverage while in the EU, at least before the current rampant privatisation, universally accessible public Health Care systems did only cost around 9 % of GDP. Because of the potency of regimes based on mutualism and abstracted from the logic of capitalist profit, the same applies to Pension Funds, car insurance etc., etc.

In a socialist system the rate of interest as it would apply to consumers’ demand – eg., saving accounts or various kind of loans – would simply be fixed by the Central Bank. Such vehicles are necessary to buy durable goods. It would follow two main criteria: a ) offsetting the rates of inflations and b ) insuring the minimum return needed to run these services. The same would apply for credit.

To understand credit as an formal anticipation in reference to Enlarged Reproduction, one must take into account the whole duration of the reproduction cycle. We know that there is a installed overcapacity of production – including overtime from the labor power – one that is strongly influenced whenever possible by the introduction of the greatest productivity; and we know that there are domestically available stocks. In a closed system, credit anticipation would simply accelerate and fluidify the realization of planning priorities over the whole duration of the Plan. It permits to switch resources accordingly thus in part away from the enterprises where the profit originated while keeping an accurate accounting ledger of the exchanges.

The main function of socialist credit is to smoothly and rapidly operate this switching of resource allocations. Hence the ratio credit/assets of the banks would be relatively low. The anticipations translate for 60 % – on average – in a real salary mass while the rest are made of orders for machines, services etc. Some stocks would remain unsold and in need to be recycled. Socialism implies the rigorous implementation of Ecomarxism, namely: a) recycling taking into account the whole life cycle of the products; b) natural and artificial renewal of needed resources; c ) search for substitutes that can be massified ; d ) production of agricultural – « agricultural sovereignty » as opposed to the deleterious « agricultural security » based on global trading on speculative markets – and production of energy surpluses since the any modern economic activity – including data processing – is a transformation endeavor, hence a very energivorous one. (15)

In an open economy in which import/export would concretize the insertion of the Social Formation within the World Economy the same logic applies. A socialist economy does not need a suzerain international currency which pretends to dominate the financial world. Such a choice fatally leads to the capitalist switching from agriculture and industry to services, notably financial speculative services; it fatally leads to ineluctable crises both cyclical and structural. But here too credit can smooth and accelerate the complexion of the Plan. But its function would better be carried out in the context of a planned international division of labor. This means that trading partners can open for each other the necessary bilateral lines of credit knowing that these nominal amounts would be fully realised in exchanged goods and services. Such currency swaps for lines of credit would simply have to be printed out by the Central Banks and their planned realisation be followed by rigorous accounting and regular auditing. To avoid rigidity – there is no need to necessarily reach a bilateral equilibrium – a Compensation Chamber would have to be devised based on the possible convertibility of a national currency into a common vehicle or basket, for instance a democratically reformed SDR or its equivalent. Given the known origin of the various inflations and given the low and administrated rates of interest, the rigorous accounting will be done in real exchange values, thanks to the revisiting of the Fisher Chain.

The essential underlying logic of money and particularly of credit is what Marx called the realisation of exchange value.  Since productivity can be integrated coherently within the Equations of SR-ER and since these Equations lead to a Marxist quantitative theory of money and credit, socialist accounting does not need to be done in the form of a material net product, it can now be done in terms of real exchange values with the extra degree of flexibility provided by socialist credit. I have called for scientific hence Marxist statistics based on the SR-ER Equations for instance in my Synopsis of Marxist Political Economy.

In such a planned system indebtedness in the capitalist sense would cease to exist: there would only be amounts of credit anticipated with the planned knowledge of their effective realisation in real exchange values. In a mix World Economy – for instance as was the case for the Eastern Bloc until 1989-1991 – things were more complex because the indebtedness occurred with capitalist-imperialist powers. The unexpected Volcker-Reagan counter-reformist financial roller-coaster with its double digits interest rates is one of the main cause of the collapse of the Eastern Bloc: it suddenly had to repay higher debts denominated in foreign currencies without full access to the World Market. Now however, there exist many countries capable to provide access to most raw material and sophisticated goods. In such a multilateral context, the lines of credit strategy is useful for all countries, socialist or not, in so far as they can reorient and diversify international exchanges with an eye on the main external balances. Similarly, it can easily defeat any pretence to the extraterritoriality of the laws of any putative imperialist power.

The inanity of the capitalist Fiscal Consolidation Path.

A long economic cycle had been initiated in 1979-1982 with the monetarist counter-reform launched be Volcker-Reagan. It was based on the emergence and consolidation of speculative capital as the hegemonic form of capital. It substituted the hegemony of internationalised productive capital embodied in the MNCs. This cycle is now coming to a dramatic end. The real fiscal crisis of the State is its hallmark, the privatisation of credit, above all the monetisation of the public and para-public debts abandoned in the hands of so-called « universal banks », is its main vehicle. Today, with the instauration of the Monetarist Minimal State and with the various QE causing a drastic « credit crunch » – and failing to cause inflation, let alone the hyperinflation expected by Bernanke to shift the burden of debt financing on creditor countries such as China and Japan (16 ) – any average citizen would quickly realise the crass inanity of the so-called « crowding out » effect of public investments and of the public financing of the State debt.

Today, the so-called Fiscal Consolidation Path is used as an ideological tool. It takes over where the monumental tax expenditures had left. As we know the hundreds billions grated in the form of tax expenditures to capital without the least counterpart for the labor force, except longer working hours for less pay and increased precariousness, have a nice aspect to them: once granted they disappear from the budget – and media – radars. In effect, they were used to legitimize monetarist austerity policies, mainly the linear cuts in safety nets and wall-to-wall privatization, with the fake promise that balanced budgets would reduce the weight of debt financing and return the economy on a growth trajectory.

The Fiscal Consolidation Path plays the same role but in a coordinated European setting. It comes with disciplinary tools and eventual penalties attached. This is another instance of « capitalist communism » since all States, big or small, are uniformly prescribed the same horse remedies. While the dismantlement of their Social or Welfare States is been completed and while the « palestinisation » of the Western and World proletariat is being savagely enforced by the new Crusaders and putative « masters of the Earth » – pace Suetonius -, the citizens are told that transitory austerity measures will soon restore the economic health of the system. Once again, as explained in my « Nietzsche as an awakened nightmare » (17), these philo-Semite Nietzscheans aim at forcefully returning Humanity to a new slavery and a new domesticity. Some regions of the EU, like Calabria and Sicily, are already close to that stage.  In Calabria, for instance, the active labor force is officially estimated at around 42 %  in a system characterised by the wall-to-wall corruption involving all institutions including the justice and police apparatuses; it has fallen to some 62 % in a United-States which brags of full-employment, in the sense of the ILO which counts as employed any person who has worked one hour during the last labor survey!

Debunking the Path is easy. It suffices to shade away the Marginalist regime phraseology and look at the bottom line:

  1. GDP accounting has been modified in 2014 in the EU in order to add some 3 % to 3.5 % growth thanks to an evaluation of drugs, prostitution, fiscal evasion, some armaments and some aspects of the so-called immaterial economy such as copyrights. Hence, if a country announces a 1 % GDP growth it really suffers a real negative growth of 2 % to 2.5 %.
  2. This fake GDP growth lowers the weight of the public debt but of course does nothing in helping lowering it in reality. Note that the volume of public debt in most EU countries continues to rise. Moreover, this fake GDP growth does not contribute much to significantly raise fiscal revenues.
  3. In this deleterious context any containment of the public debt, let alone any lowering of it, rests on linear cuts in public spending – social safety nets and infrastructures – and on wall-to-wall privatisation conducted years after years. This is done without ever thinking to ask the rich and the private banks, which have been bailout out at a tremendously high cost on the public purse – 17 % of the GDP of the EU according to Trichet who understood that the indirect cost was even higher -, to contribute a little more to State Revenues. The only exception is the actual drive to get some 3 to 5 billion from the GAFAM; such razor-hedge budget management is intended to give the impression that the Fiscal Compact diktats are respected. One does not discontinue a program that works as expected, right? Indeed, the real purpose of the Path is to legitimise this philo-Semite Nietzschean regression and savage dispossession of sovereign citizens and nations.
  4. Suppose the financing of the debt amounts to 4 % of GDP and that the primary surplus – namely the fiscal surplus in abstraction of this debt financing – amounts to 1.5 %, then the real deficit will be around 2.5 %. This last ratio can be lowered somewhat through various gimmicks, always una tantum, the most hideous being the repatriation of capital outflows enticed by a very low taxation rate, the whole thing amounting to a legal fiscal pardon for the rich.
  5. Note that the privatisation of State enterprises bring una tantum sum of money to the State coffers but ineptly sacrifices the annual dividends which would accrue to the Treasury year after year as the sole or main owner. Often, before privatisation kicks in, State enterprises are intentionally pushed in the red to better legitimise the privatisation process with the excuse that private interests would be more efficient in pursuing a market logic. No private buyer would ever buy an enterprise that is not profitable. Furthermore, the market is now prisoner of a short-term logic and counts on the State to provide the long-term capital needed to finance the necessary infrastructures which they then pretend to run according to the magical market logic. This logic transforms public services beneficiaries into clients who are worthy of respect only in proportion to their ability to pay. The same goes for geographical and urban peripheries. Furthermore, the logic of profit and dividends maximisation leads to financial and material catastrophes and hence to the need for the State to socialise the losses. Think of Enron but also of Fukushima – the plant had to be closed 5 years before the tragedy occurred; the closing did not happen because of the juicy dividends derived from an already paid-off equipment. The same deleterious logic leads to sacrifice routine maintenance and security costs as with the recent Morandi bridge in Genova.

This Fiscal Consolidation Path must promptly be thrown into the waste basket where it belongs. Together with the economics textbooks that inform it.

In the present context, a EU country could instead chose to pay the penalty of 0.3 % instead of subjecting to the deleterious Path logic. This would be done to entice other EU members to renegotiate the Treaties especially because the Fiscal Compact, the Two and Six Packs and the Fiscal Consolidation Path that goes with them did not get a unanimous approval yet. On that basis a real budgetary policy could be devised over a medium term. While the instruments would be different the objectives remain, namely lower the debt and restore the budgetary margin necessary to finance the strategic intervention of the State in the economy in view of supporting the welfare of all citizens. The main planks would necessarily have to be :

1 ) The creation of a public bank with an initial average financial lever – say of 40 to 1 – which will be lowered gradually. In this way, the management of money will be left to the ECB for the time being while the State will recover an important role in the creation and management of public credit. This will immediately defeat any speculative attack exercised in the EU through the manipulation of the spread by the big players in the « market ». Later the CDS on the public debt will have to be abolished because they are obviously absurd: the States not the primary banks ensure the legal tender of the their respective currency. This public bank would help finance the public debt on the primary market at close to zero interest rate. It will also slowly buy and simply cancel the public debt already traded on the secondary market. This will free budget room. Similarly, it can provide public credit to rebuild the infrastructures and the industrial core and even provide the co-financing necessary to use the EU structural funds. EU resistance should be pushed aside and ignored especially by those countries which contribute more than they get back. Furthermore, Article 107 of the Tufe provides for many exceptions to the vague rule of « free competition ». Remember that competition was already in the Rome Treaty and it was compatible with a strong State’s economic and social regulation. Furthermore, as originally proposed in my Tous ensemble, the reduction of the public debt could also be done through swaps debt-against-investment. A public consortium backed by the public bank would manage and guarantee the swaps while launching the necessary and long overdue public works – including the maintenance of roads, bridges, railways, sewers and sewers treatment plants. The swaps would in effect restructure the public debt over a 20-Year period at a low but secure return. Banks’ non performing loans could qualify but with a correct readjustment of their values, thus cleaning up part of the mess and consolidating the banking sectors with more tangible assets. No private banks should be rescued any longer without their nationalisation. This is because this nationalised public recapitalisation costs only a fraction of the present recurrent and ineffective bailouts. Just look at the crassly inept and costly Atlante Italian Fund devised to rescue relatively small financial speculative institutions which once were Banking Foundations with strong ties to local industry.

2 ) The legal reduction of the work week. This could be done at a low cost by reorganising useless exonerations to capital and many existing and inefficient social assistance programs. In fact, this is exactly what Prime Minister Jospin’s « gauche plurielle » did: its RTT did cost only 23 billions but quickly lowered unemployment to 8 % – from more that 10 %; it almost completely eliminated the deficit in Social Security thanks to the full social contributions levied on the paycheques while extending the Health-care coverage; it equally increased fiscal revenues thus providing more room for  socio-economic and cultural budgetary measures and helped lower the public debt to 59 % of GDP, namely one percentage point lower than the Maastricht Criterion. It did so in only two years. We also did witness the spontaneous emergence of a sociology of leisure time. Conversely the economic and fiscal crisis became evident as soon as the rightwing government which followed the « gauche plurielle » suffered a loss of more than 250 000 jobs after having dilapidated most of the earlier gains. Note that any version of the so-called Citizen guaranteed revenue is nothing else than a cynical joke simply because it would have to be financed year-after-year out of dwindling general fiscal revenues. Instead the RTT is based on the virtuous capital circuits induced by the institution of a strong « differed salary ».

3 ) A new anti-dumping definition based on the three components of the « global net revenue » of the households must be negotiated. The time is right given the unfolding of Trump’s tariff war. As a matter of fact, this trade war could be interpreted as a chaotic groping toward this new worldwide necessity. While this new anti-dumping would be negotiated it could be anticipated on the national or better European scale by a Social Value Added Tax intended to protect national and EU-based enterprises of all origins. It could also work as a small import surtax or better still as a targeted addition on the usual Value Added Tax duly excepting the components which enter into the ordinary consumers’ basket as well as publishing and arts. This would be legitimate since Social Affairs remain an exclusive competence of EU member States. The new definition of anti-dumping would simply be used as a interpretation norm of existing free-trade arrangements turning them into fair-trade deals without any arduous re-negotiations. As we know the WTO processes require unanimity!!!

Paul De Marco

Copyright © La Commune Inc, September 21, 2018

Notes:

1 ) For the full theory see my Synopsis of Marxist Political Economy in the Livres-Books section of my old site www.la-commune-paraclet.com . The term « maintenance » comes from the works induced by the Tennessee Valley Authority during the Great Depression. They noticed that after two years of unemployment, aside from the expected lack of working experience, workers accumulated serious physiological lacunae which made them unfit for the required available jobs. This realization led to the FDR’s New Deal Programs, including Public Works. It also provided the origin of modern bourgeois statistics soon elaborated upon by Kuznets.

2 ) See same section, same site.

3 ) See https://en.wikipedia.org/wiki/Money_supply

4 ) The hegemony of speculation led to what I called « credit without collateral ». With the permanent bailouts of private banks, including the continuous provisioning deducted from taxation, the capitalist Central Bank’s lending propensity has become the de facto prudential ratio of the current banking system. This trend was aggravated after the abrogation of the Glass Steagall Act – 1999 – and after Treasury Paulson’s bailout of US banks – systemic and allegedly « too big to fail » – after March 2008. See « Credit without collateral » and « The Treasury and the FED » in the International Political Economy section of www.la-commune-paraclet.com . For an update see « The FED dilemma » in the Category « Another America is possible » in http://rivincitasociale.altervista.org

5 ) These falsifications are exposed in my Methodological introduction and in my Synopsis of Marxist Political Economy freely accessible in the Livres-Books section of by old site www.la-commune-paraclet.com

6 ) A quick résumé is provided in the article entitled « The pseudo-economic science of the bourgeoise: Here is why we should quickly change economic paradigm », in http://rivincitasociale.altervista.org/the-pseudo-economic-science-of-the-bourgeoisie-here-is-why-we-should-quickly-change-economic-paradigm/

7 ) In the section « Commentaires d’actualité » in www.la-commune-paraclet.com , see the note on Al Gore, in « Le Pacte Hulot: Nouvelle écologie du charbonnier ou pacte socio-économique communiste?  (voir aussi Al Gore) ».

8 ) For a shortcut see the « Annex » of the article referenced in Note 6 above.

9 ) The « global net revenue » of households include the capitalist individual salary, the differed salary – mainly pension and UI – and the transfers to households in terms of universal access to social services and public infrastructures. This characterised the so-called Welfare State and its more virtuous capital circuits. This socio-economic organisation was mostly dismantled by the monetarist and neoliberal Minimal State and its destructive anti-dumping definition enshrined by all free-trade deals and by the WTO. This definition excludes any reference to labor rights or to minimal environmental criteria. For a résumé see my « Foreword » and « Appeal » in http://rivincitasociale.altervista.org/test/

10 ) For the statistical series on the Italian public debt from 1861 to 2015 see  https://umbvrei.blogspot.com/2015/06/italia-pil-e-debito-pubblico-dal-1861.html . For Volcker-Reagan, see my « The socio-economic consequences of MM. Volcker, Reagan and Co » March 1985, in the Category « Another America is possible » in  http://rivincitasociale.altervista.org/another-america-possible-feb-1-2017/ . The fabricated crisis was caused to allow imperial crisis management in order to comfort the American World dominance after the official collapse of the Bretton Woods System during the Jamaica Summit in 1976. Trump’s policies follows the same crisis triggering followed by crisis management logic. However, this time around the fallacious promises of « asymmetric interdependence » – Joseph Nye and Kehoane and al – have been washed away and new economic rivals have emerged in a multilateral military and economic world. Planned systems relying on public credit can sustain trade and speculative attacks with relative ease.

11 ) In my Tous ensemble I addressed one other main type of inflation, imported inflation.

12 ) On Socialist democracy namely the crucial power exercised by citizens over the allocation of resources and over the production-reproduction process. which go much further than the fake bourgeois pluralist representative democracy, see the chapter entitled « For Cuban Socialism » in my Pour Marx, contre le nihilisme – Livres-Books section of www.la-commune-paraclet.com – as well as the section « For Cuban Socialism » in the same site. For civil rights see the second part of this book, in part translated in English as far as the Marxist Theory of Psychoanalysis is concerned (idem), as well as the essay « Mariage, unions civiles et institutionalisation des moeurs » in the Pink section of the same site.

13 ) Along side with my concept of « global net revenue » of the household, I use this formulation « social surplus value » to define the specific socialist character of the extraction of surplus value in a Socialist Mode of Production. It is derived from Marx’s crucial initial analysis of Social Funds offered in the Critique of the Gotha Programme. ( see https://www.marxists.org/archive/marx/works/1875/gotha/ )

14 ) Stalin did not have a Marxist theory of productivity fully integrated within the Equations of SR-ER. I was the first to demonstrate this theory – which eliminates many falsifications notably the fake so-called Transformation problem or the puerile emphasis on the Tendency of the rate of profit to fall which confuses rate for volume and even fails to notice the following chapter in Book III of Capital which addresses the reverse tendency! Making a difference between rate and volume is the only way to make sense of what Lenin following Marx called the Laws of motion of capital, notably the centralisation and concentration tendencies. Stalin took the Schema of Simple Reproduction – identical v/C and pv/v in Sector I and Sector II- as its working model. He opted pragmatically for the introduction of the highest productivity whenever possible – including buying technologies from outside – and adjusting the planning discrepancies along the way. His choice was right: my coherent insertion of productivity changes in the SR-ER Equations – sectorally different v/C and pv/v – proves that the SR Equations do not need to be thought of as a special case. This explains the tremendous success of Stalin’s planning. All was thrown out by Lieberman/Khrushchev’s revisionism. See on the subject my  « Marginalist socialism, or how to chain oneself in the capitalist cavern » in https://www.la-commune-paraclet.com/EPIFrame1Source1.htm#epi

15 ) On Ecomarxism see the Introduction and the Appendix of my book III entitled Keynesianism, Marxism, Economic Stability and Growth (2005). The concept is more elaborate than the simplistic and Marginalist idea of a circular economy.

16 ) See for instance « The FED finally admits: it does not know what inflation is », in http://rivincitasociale.altervista.org/the-fed-finally-admits-it-does-not-know-what-inflation-is-sept-21-2017/  See also « The FED DILEMMA » in the International Political Economy of www.la-commune-paraclet.com  ; see also « Another America is possible » in http://rivincitasociale.altervista.org/another-america-possible-feb-1-2017/  Note that Bernanke doctoral research was on inflation – in the singular.

17 ) See the Livres-Books section o www.la-commune-paraclet.com . See also « Heidegger, the intimate corruption of the soul and of human becoming. » , idem.

Uscire o non uscire dall’euro? 22 sett. 2018

Posted: 22nd settembre 2018 by rivincitasociale in Commenti rapidi, Politica
Commenti disabilitati su Uscire o non uscire dall’euro? 22 sett. 2018

Vedi: “Uscire dall’euro per rompere con la divisione del lavoro imperialista europea”

di Joaquín Arriola* in http://contropiano.org/news/news-economia/2018/09/22/uscire-dalleuro-per-rompere-con-la-divisione-del-lavoro-imperialista-europea-0107767#comment-139929

Vedi: « Uscire dall’euro non serve, serve mettere fine alla banca detta universale » in Download Now nella Sezione Livres-Books del mio vecchio sito www.la-commune-paraclet.com

Qual’è la percentuale delle esportazioni cinesi nei Stati-Uniti prodotte da aziende americane istallate in Cina? Qual’è la percentuale di R&S nei paesi con una forte base industriale tipo Germania (3%) rispetto ad altri, tipo Italia (un misero 0.9 %)? In un contesto di capitale speculativo e di corto termine come viene finanziata la base industriale che richiede investimenti a medio e lungo termine ? (La Germania non ha sacrificato le sue banche regionali all’Unione Bancaria Europea ristretta preventivamente al centinaio di banche dette sistematiche. In Italia, le vecchie fondazioni legate alle imprese industriali hanno cambiato mestiere diventando pericolosamente speculative come pure molte casse di risparmio regionali …) Che relazione esiste tra la base industriale nazionale – o regionale tipo UE – e lo sviluppo dei servizi di alta gamma? (shipping, assicurazioni, ricerca, partecipazione alla formulazione delle norme, ecc …)

L’organigramma globale delle firme multinazionali e transnazionali rappresenta una scelta che va di pari passo con la priorità data ai servizi contro l’industria sul piano domestico. Ad un livello più cinico, un Larry Summers consigliava di de-localizzare le imprese più inquinanti nel Terzo Mondo dato il costo comparativamente inferiore dei compensi alle vittime di Bhopal rispetto a quelle di Three Miles Island.

Per i Stati-Uniti questa scelta imperiale fu accelerata dall’emergenza del dollaro americano come principale valuta di riserva internazionale. Si favoriva la bilancia dei pagamenti sulla bilancia del commercio, cercando così di sfruttare la « catena mondiale del valore aggiunto ». (1) Come da me previsto il gioco imperiale del globalismo fondato sull’« interdipendenza asimmetrica » dimostrò la superiorità dei paesi che conservarono una coerenza economica nazionale tale la Germania o la Cina. La quale coerenza implica per lo meno una pianificazione strategia e un certo controllo pubblico del credito.

Se la regressione socio-economica, culturale e costituzionale di un paese come l’Italia mette in difficoltà la sua inserzione della zona economia europea e nell’Economia Mondiale Capitalista, la soluzione non sarà certo di scegliere una ipotetica zona economica più debole nella quale competete!!! Lo spazio mediterraneo comporterà un gran vantaggio per l’Italia solo se riesce a ristabilire il suo ruolo in quanto uno dei tre grandi pilastri dell’integrazione europea. Ad esempio, se il Corridoio I Palermo-Amburgo non è completato, il Meridione sarà automaticamente tagliato fuori dello sviluppo europeo e mediterraneo. La stessa cosa vale per Gioia Tauro e la sua zona industriale. (2)

Lascio da parte il fatto che la distruzione dell’eurozona (3) come pure della coesione della UE entra nella strategia imperiale filo-semitica nietzschiana di distruzione preventiva di tutti i rivali economici e militari dell’Impero. Questo progetto demenziale, comunque già fallito, include la dominazione del Medio-Oriente e dell’Africa, trasformando in questo ultimo caso il nostro Paese in un centro raccolta di « intelligence » – Sigonella ecc – e in varie base di lascio degli attacchi.

Paolo De Marco

San Giovanni in Fiore, 22 settembre 2018

1 ) Per questo concetto vedi il mio Livre-Book III intitolato « Keynesianism, Marxism, Economic Stability and Growth » (2005). Usare il termine « échelle » con la funzione Ricercare. Senza citare la fonte il Rapporto annuale RAMSES 2007 riprese e illustrò il concetto pp 69-79

2 ) Vedi il mio articolo « Calabria : sognare quello che potrebbe essere » in http://cotroneinforma.org/wp-content/uploads/2017/10/132.pdf , pp 8-9

3 ) L’euro rappresenta già oltre 20 % delle riserve mondiali, il dollaro US in rapido declino essendo già sceso attorno a 66%. Intanto, il meccanismo kissingeriano – post-1973 – fondato sulla vendita del petrolio e delle materie prime in dollaro americano viene fortemente rimesso in causa, ad esempio con l’emergenza del trading del petrolio in renminbi a Shanghai. Oppure con una UE oggi forzata ad immaginare dei metodi di pagamenti mondiali indipendenti dal sistema SWIFT controllato dai Stati- Uniti per aggirare gli effetti dell’extraterritorialità americana. Vedi: http://rivincitasociale.altervista.org/extraterritorialita-legalita-necessarie-misure-maggio-giugno-2018/