“Liberty, Equality, Fraternity,” allow civilization to function optimally (as they put all brains in parallel). The Greeks were rightly obsessed by them, especially Liberty, and various notions of Equality (several of which we have lost).
However, time and time again, in history, civilization collapsed into Slavery, Inequality, Hatred, Mayhem. How? Generally, through the plutocratic phenomenon. That’s when greed takes over any other inclination, to become the organizing principle of society.
90,000 pages of the tax code of the USA have been written to insure that the greedier, the less taxes one pays (99.99% of the People use only .01% of that tax code: the inverted percentages are no accident, but design).
Absent a progressive taxation that is sufficiently steep enough, the exponential growth of wealth guarantees that the plutocratic phenomenon will occur. The mathematics of interest enforces this. In simple language, the richer they are, the easier it is for the rich to get richer. (This was known throughout the Neolithic by societies which left a trace; it’s not known in the present USA, because the plutocrats have captured the collective cognition and reflection).
The plutocratic phenomenon, plutocracy, comes in two phases: first, an oligarchy confiscates most of the wealth and most of the economy. This is happening now, and is facilitated by the capture of political power. (1)
Secondly, this unjust rise of wealth for a few is accompanied by an implosion of the character of the oligarchs, down into the black hole of the Dark Side. Why? As their rule gets ever more unjust, the richer and more powerful they get, the plutocrats need ever more devious means to stay in power by force and lies. That, in turn, makes plutocrats ever more satanic. (2)
In other words, past a point, the only way plutocracy can grow, is by harnessing the Dark Side, big time. Satanism grows on itself, just as, in the early stage, wealth grew on itself.
This growth of global and overreaching Satanism is one of the (overlooked) consequences of plutocracy.
What does this mean in practice, in the situation we are?
The first thing to do is to break the enslavement of money creation to Wall Street (instead of Main Street). In normal circumstances, most of the money is created by private banks under a mandate from the government. Franklin Roosevelt knew this, and that’s why he passed the Banking Act of 1933 (3).
Secondly wealth ought to be detected: put in place a worldwide system to detect where and what all of wealth consists of. Break through all these shell companies and holdings.
Third, tax the hyper rich enough to block the confiscation of all wealth and power by just a few. Republican president Eisenhower instituted a 93% tax on the upper tax bracket. The same, worldwide, inflicted to all and any wealth above the billionaire level, would instantly re-establish civilization, and its prospects.
Notes: A good way to get out of plutocratic service is default on debt (by the states). Contrarily to what many of my contradictors on the Internet, especially the Krugman blog, claimed, the USA did default on its debt several times (about 6 times). As usual when there is a default, it’s later erased from collective memory by semantic calibration.
For example FDR’ 1933 default, or the Argentinian or Greek defaults are called by other names. Generally one calls default “restructuring the debt”.
A reason for the popularity of Wall Street style financing in the USA is the stability of the country, an island, just like Britain. Continental financial exchanges have a less good track record, due to invasions. The debt default problem is tightly related to this.
(1) The seizure of an economy by oligarchs, under order from the USA, happens. This could be observed in Russia in the 1990s under Yeltsin, when Harvard academics, in a crafty plot, advised the naïve president, that a modern economy could not exist without a plutocracy.
(2) Satanism: this is why Obama tells us that, to lower healthcare costs, one has to bring those who want to make a profit, and that’s why, when the democrats could do it, they refused to even consider enabling Medicare to negotiate the prices of drug in G.W. Bush Medicare Part D plan.
(2)’ Satanism: Just watch the NSA and the like. It’s not so much about “terrorists” that they are after, than just establishing a police state hooked on large corporations, that is, the plutocracy (which owns and control them). Don’t forget the CIA fabricated Bin Laden.
(3) The so called “Volcker Rule” is a pale reminder of FDR’s Banking Act of 1933: it just requires banks to inform customers when they steal their money.
And now for what Dominique Deux said about the necessity to find out, where, what, how and who about wealth:
Dear Patrice, as usual your comment, far from dwelling in Utopia, is full of small seedlings which only need some nurturing and watering to bloom into perfectly feasible programs/policies.
One such is “Break through all these shell companies and holdings.”
Merely stopping to consider this opens huge venues.
First of all, we’re supposed (ordered) to believe that this is a technically impossible task, and stop there. That is pure unadulterated BS. Government spying is both rife and efficient worldwide, but tracing back an oil tanker’s ultimate owner, or a holding’s ultimate paymasters, is claimed to be impossible due to that tired, low-tech trick of shell post boxes with copper plates in tax havens. Aw, come on.
Fact is, the smart intel and law enforcement community is carefully kept busy chasing red herrings, and barred from joining that specific fray. No means, no results, it’s as simple as that.
Year in, year out, hundreds of extremely proficient finance professionals are churned out by business schools and universities worldwide. French graduates, due to their high mathematical level, are among the best and at a premium, but they’re not the only ones by far.
Let Governments start large recruitment programs, with a view to be as replete with financial intel capacity as they are now with anti-terrorist and economic spying capacity. This means decently paid analysts with decent career prospects. Tracing back clandestine ownership should no longer be a judge-ordered effort, using up spare capacities on a few idiots who made the mistake of getting conspicuous, but a blanket policy, with enough hardware and personnel to spare.
The costs would be offset, by several orders of magnitude, by the obvious fiscal gains. Other advantages would unfold, some unforeseen.
Of course the bright school and U alumni are all vying to become seven figure traders, sell swords in gilt armor for the masters of the world. Yet a two pronged approach of (a) offering decent earnings, status and government careers, along with the satisfaction of working for the common good, and (b) ruthless and exemplary treatment of the “golden boys” who somehow fall foul of justice, would make quite a lot of these bright young men (and women) think twice before selling their souls.
(It’s a bit like prostitution: when attractive young women are given a real choice between gratifying work and selling their bodies, only a hardcore minority will keep to the latter. But the choice has to be real – no Walmart till pseudo-jobs.)
When I say “Governments” I do not mean all of them. A few relevant ones would be enough. Along with international agencies.
You’re fond of reminding us of the greatness of WWII warriors. So, here it is: “Where there’s a will, there’s a way”.