Friday, November 14, 2008


NEW YORK, Nov. 13 /Standard Newswire/ -- The following text is of remarks by President Bush on Financial Markets and the World Economy:

History has shown that the greater threat to economic prosperity is not too little government involvement in the market - but too much.


Hoover proves lack of government involvement led to the Great Depression. Here is Republican historical revisionism in it most blatant stupidity.Right wing American ideologues whether Republican, Conservative or Libertarian all try and avoid this obvious fact instead blaming the Smoot Hawley Act which was protectionist for the long Depression. In fact it was Hoovers hands off approach to the markets for three years that created the spiral downward. Smmot-Haweley and protectionist measures in Europe only agrivated that downward rush.

Bush, the Republicans, heck the liberals and the Libertarians in America live in a cloud cookoo land, one that imagines an artisan/farmer free market, free of monopolies, cartels and special business interests tied to the state. A time that is a fiction, a myth, of American Capitalism.

Ain't ever been such a creature nor is it the nature of American Capitalism and Imperialism.

Bush admits that capitalism is in a crisis; Faced with the prospect of a global financial meltdown
nations have responded with bold measures, and at Saturday's summit, we will review the effectiveness of our actions. This crisis did not develop overnight, and it will not be solved overnight.

And his solution is to keep on keeping on, capitalism is great, yep it has crisis, but heck its still the best system ever devised by humans.

This is a decisive moment for the global economy. In the wake of the financial crisis, voices from the left and right are equating the free enterprise system with greed, exploitation, and failure. It is true that this crisis included failures - by lenders and borrowers, by financial firms, by governments and independent regulators. But the crisis was not a failure of the free market system. And the answer is not to try to reinvent that system. It is to fix the problems we face, make the reforms we need, and move forward with the free market principles that have delivered prosperity and hope to people around the world.
Like any other system designed by man, capitalism is not perfect. It can be subject to excesses and abuse. But it is by far the most efficient and just way of structuring an economy. At its most basic level, capitalism offers people the freedom to choose where they work and what they do, the opportunity to buy or sell the products they want, and the dignity that comes with profiting from their talent and hard work. The free market system also provides the incentives that lead to prosperity – the incentive to work, to innovate, to save and invest wisely, and to create jobs for others. And as millions of people pursue these incentives together, whole societies benefit.

A nation that gave the world the I-Pod which is manufactured in China. Because as Reason magazine announced in 1999 that the world of the 21 Century was no longer America as the producer nation but America the consumer/service industry nation. A predicition that failed to understand that this would ultimately lead to a credit crisis, when a nation fails to produce value but rather lives on the value produced by others and lent to them.

Free market capitalism is far more than an economic theory. It is the engine of social mobility – the highway to the American Dream. It is what makes it possible for a husband and wife to start up their own business, or a new immigrant to open a restaurant, or a single mom to go back to college and begin a better career. It is what allowed entrepreneurs in Silicon Valley to change the way the world sells products and searches for information. And it is what transformed America from a rugged frontier to the greatest economic power in history - a nation that gave the world the steamboat and the airplane, the computer and the CAT scan, the Internet and the I-Pod.

Bush went on to defend capitalism, specifically post WWII American Capitalism, which itself is not a free market economy, but one of protectionism combined with state capitalism of the Military Industrial Complex. America subsidizes its aircraft manufacturerers, its agribusiness cartels, its auto industry, and has since WWII. To hear the President proclaim the glory of free markets and free peoples, is to also deny the hisorical reality which is American Capitalism. He further equates Japan's economic boom with American Capitalism, when in reality it is the result of State Capitalism. Japan used the Military Industrial Banking model for its development.

Ultimately, the best evidence for free market capitalism is its performance compared to other economic systems. Free markets allowed Japan - an island nation with few natural resources - to recover from war and grow into the world's second-largest economy. Free markets allowed South Korea to make itself one of the most technologically advanced societies in the world. Free markets turned small areas like Singapore, Hong Kong, and Taiwan into global economic players. And today, the success of the world’s largest economies comes from their embrace of free markets.

South Korea which itself is an other model of State Capitalism, with Military and Finance capital under a pro-USA military dictatorship finally evolving into a manufacturing fordist economy modeled on the success of Japan. As for Singapore and Hong Kong these two islands of free market economies are ruled by dictators, proving that capitalism can function without democracy.

Meanwhile, nations that have pursued other models have experienced devastating results. Soviet communism starved millions, bankrupted an empire, and collapsed as decisively as the Berlin Wall. Cuba, once known for its vast fields of cane, is now forced to ration sugar. And while Iran sits atop giant oil reserves, its people cannot put enough gasoline in their cars.

Oh sure free markets really work well, except Cuba is rationing sugar because they cannot compete with American subsidized sugar and the American led economic boycott of their country. No free market here.

As for the Soviet Union it collapsed because it lost the military race under Reagans expansion of military spending, the USA Military Industrial Complex defeated the Soviet Unions Military Industrial Complex. Capitalism did not defeat Communism, rather the American model of State Capitalism proved to be more flexible than the autarchic command economy model used in the Soviet Union. Unfortunately China proves that this autarchic command model can be flexible, and now American Capitalism is beholden to China for its national debt.

But Bush was not the only one to proclaim that Capitalism may be melting down but its still not the problem. In listening to their Republican masters voice, our own Finance Minister and PM echoed Bush's doctrine that capitalism has not failed.

In a piece in the Financial Times, meanwhile, Mr. Flaherty too had rare kind words for the invisible hand, downplayed grand global financial architectural plans and suggested that reform -- like charity -- should begin at home. "The open market system did not fail in this crisis," he said.

Prime Minister Stephen Harper is expected to join U.S. President George W. Bush in a defence of free-market capitalism and resistance to international calls for dramatic re-regulation of financial markets.

The ruling class recongizes that capitalism has once again failed, the bubble burst, the market crashed, what goes up must come down, the business cycle has not been superceded by globalization. The elephant in the room is socialism. The Republican Libertarian argument is to let the market decide, except contrary to their Libertarian dogma that market has come cap in hand to its State to bail it out. Opps. Guess real capitalism does not like the discipline of the marketplace. In attempting to not bail out the working class who is really suffering from this crisis with record home foreclosures, record unemployment and the very real threat of the meltdown of America's core manufacturing centre; Michagan, Bush and Harper need to couch the argument as a question of state intervention. The strawman they set up is to equate state capitalism, state intervention as socialism. Which it is not.

Capitalism cannot continue as it is. Temporary fixes like increased regulation, government bailouts etc. are not a solution to the crisis nature of capitalism. Socialization of capital is what is required. The fact that workers create captial, not business which only produces 'jobs', without workers capitalism collapses. This was clearly seen in Alberta last year during the height of the boom, when neither for love nor money could businesses find enough workers.
The result was many small businesses, you remember them they are the core of the economy according to Bush and Harper. closed.

Workers create captial, they circulate that capital by home purchases and by consuming the products they produce. They fund capital through their pension and benefit plans, pensions are called institutional investors in Wall Street, one of the largest sources of capital available currently.

The Canada Pension Plan fund said Wednesday it ended its latest quarter with a loss of more than $10 billion in the value of its assets, primarily because of the stock market turmoil that has battered share prices around the world.
But president and CEO David Denison said Canadians shouldn't worry that the loss will affect their current or future retirement benefits.
"This fund is designed to be able to withstand this short-term market volatility that we are living through, quite frankly better than any other fund in this country," Denison said in an interview with The Canadian Press.

Here is the true source of capital the working class blue, white and green collar, that produce and consume. And it is the means to change capitalism, the use of workers productive value matched by their pension funds and the corporate pension liabilities which are owed them, with capital from public pension funds, workers can then fund the corporations and run them themselves.

In Quebec there are labour funds as well as the Cassie Popular, the credit unions which have enormous reserves of workers capital to be able to use for promoting workers control of industry. In the rest of Canada workers whose credit unions are mimicing banks, need to take control of them and use this vast reserve of capital to invest in worker controled industries.

With the socialization of capital under workers control, the question of bail outs and regulation of the market become moot.

This is the socialism that Bush and Harper fear. This is why they distort the definintion of socialism equating it with state capitalism and command economies. Which socialism never was about. It is about the need to socialize captial to benefit those who create it; the working class.

It is the working class who are the real investors in capitalism, not those investors on Wall Street who play the market. The working class exists because of capitalism and capitalism exists because of the working class. As this crisis deepens and government intervention fails to stop the melt down, the only solution that will become clear is the need for socialization of capital under workers control.

October Surprise Was The Market Crash
No Austrians In Foxholes
The Return Of Hawley—Smoot
Canadian Banks and The Great Depression
U.S. Economy Entering Twilight Zone
What Goes Up...
Wall Street Mantra
Bank Run

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