Wednesday, January 22, 2014

Are We Living in a Brave New World as Described by Aldous Huxley in 1958?



Submitted by Mike Krieger of Liberty Blitzkrieg blog,
Under the relentless thrust of accelerating over-population and increasing over-organization, and by means of ever more effective methods of mind-manipulation, the democracies will change their nature; the quaint old formselections, parliaments, Supreme Courts and all the restwill remain. The underlying substance will be a new kind of non-violent totalitarianism. All the traditional names, all the hallowed slogans will remain exactly what they were in the good old days. Democracy and freedom will be the theme of every broadcast and editorialbut Democracy and freedom in a strictly Pickwickian sense. Meanwhile the ruling oligarchy and its highly trained elite of soldiers, policemen, thought-manufacturers and mind-manipulators will quietly run the show as they see fit. 

- Aldous Huxley, Brave New World Revisited, published 1958
It’s always felt a bit bizarre and, indeed slightly embarrassing, that of all the books I have read in my days, Aldous Huxley’s 1932 classic Brave New World was not amongst them. Not only is the book frequently mentioned to make political and social statements about contemporary times, the novel’s concept always caught my interest. I just never got around reading it. Until late last year.
I loved this book and was very pleasantly surprised. I was prepared for a more fearful and overwhelmingly dark and twisted experience. While there were obvious elements of those things, it was a much more enjoyable read than I anticipated. Indeed, it was a very human book, as ironic as that might sound. As much as the “Controllers” in Brave New World were indeed in control, the human spirit still managed to bubble to the surface. To the point that the controllers had to designate certain islands for the iconoclasts which inevitably emerged from within the “Alpha” class. All of the drugs, brainwashing and conditioning couldn’t totally break the human spirit. As such, it was a much more hopeful and nuanced novel than I expected it to be. If you haven’t read it, I suggest making it your next book. If you have read it, read it again.
However, this post isn’t about Brave New World. While that book is indeed a creative warning, it is still fiction and a work of art more than anything else. Twenty six years after its publication, Huxley wrote Brave New World Revisited, in which he takes stock of the post World War II period. His analysis is grave. He saw the world progressing toward his nightmare much faster than he anticipated. Brave New World Revisited is a brilliant work of non-fiction and filled with almost incomprehensibly prescient predictions. It also provides a great deal of advice to future generations. Advice which we must immediately heed.
Of all the solutions Huxley focuses on in Brave New World Revisited, from proper education, to a simple acknowledgment of humanity as moderately gregarious animal not prone to over-organization; the most profound, and I think useful recommendation, is for us to decentralize. This has been a theme of mine and many other writers for some time now. Fortunately, through things like 3D-Printing, Bitcoin and other decentralized crypto-currencies, open source software, crowd funding, social media, etc, the world is moving from centralization to radical decentralization. People will be more connected than ever, but power will be more decentralized. We need to continue to push rapidly in this direction and a whole new incredible world will emerge. Indeed, it is being born as I write this.
Several years ago after reading Hayek’s Road to Serfdom I wrote a lengthy post highlighting key excerpts for those who were interested, but didn’t have the time or inclination to read the whole thing. Due to that post’s popularity and effectiveness, I have attempted to do the same withBrave New World Revisited. I hope this inspires you all to read the entire thing. Enjoy.
From Chapter 2: Quantity, Quality, Morality
And now let us consider the case of the rich, industrialized and democratic society, in which, owing to the random but effective practice of dysgenics, IQ’s and physical vigor are on the decline. For how long can such a society maintain its traditions of individual liberty and democratic government? Fifty or a hundred years from now our children will learn the answer to this question.
My Thoughts: Yes, indeed we are learning the answer to this right now. Just look around you.
From Chapter 3: Over-Organization
Under a dictatorship the Big Business, made possible by advancing technology and the consequent ruin of Little Business, is controlled by the State-that is to say, by a small group of party leaders and the soldiers, policemen and civil servants who carry out their orders. In a capitalist democracy such as the United States, it is controlled by what Professor C. Wright Mills has called the Power Elite. This Power Elite directly employs several millions of the country’s working force in its factories, offices and stores, controls many millions more by lending them the money to but its products, and, through its ownership of the media of mass communications, influences the thoughts, the feelings and the actions of virtually everybody.
My Thoughts: If you talk as Huxley writes above in “polite society” you will be labeled a conspiracy theorist or kook.
From Chapter 3: Over-Organization
It is in the social sphere, in the realm of politics and economics, that the Will to Order becomes really dangerous. Here the theoretical reduction of unmanageable multiplicity to comprehensible unity becomes the practical reduction of human diversity to subhuman uniformity, of freedom to servitude. In politics the equivalent of a fully developed scientific theory or philosophical system is a totalitarian dictatorship. In economics, the equivalent of a beautifully composed work of art is the smoothly running factory in which the workers are perfectly adjusted to the machines. The Will to Order can make tyrants out of those who merely aspire to clear up a mess. The beauty of tidiness is used as a justification for despotism.

Organization is indispensable; for liberty arises and has meaning only within a self-regulating community of freely cooperating individuals. But, though indispensable, organization can also be fatal. Too much organization transforms men and women into automata, suffocates the creative spirit and abolishes the very possibility of freedom. As usual, the only safe course is in the middle, between the extremes of laissez-faire at the one end of the scale and of total control at the other.
My Thoughts: Huxley accurately notes that the “will to order” is a natural part of the human psyche. There are disciplines where the “will to order” is actually useful and necessary to human progress; however, he warns that in the social sphere it is deadly and usually ends with totalitarianism.
From Chapter 3: Over-Organization
City life is anonymous and, as it were, abstract. People are related to one another, not as total personalities, but as the embodiment of economic functions or, when they are not at work, as irresponsible seekers of entertainment. Subjected to this kind of life, individuals tend to feel lonely and insignificant. Their existence ceases to have any point or meaning.
My Thoughts: Huxley clearly sees the sprawling metropolis as incongruent with human nature and freedom. It is a theme he consistently returns to throughout the book.
From Chapter 3: Over-Organization
Biologically speaking, man is a moderately gregarious, not a completely social animal—a creature more like a wolf, let us say, or an elephant, than like a bee or an ant. In their original form human societies bore no resemblance to the hive or the ant heap; they were merely packs. Civilization is, among other things, the process by which primitive packs are transformed into an analogue, crude and mechanical, of the social insects’ organic communities. At the present time the pressures of over-population and technological change are accelerating this process. The termitary has come to seem a realizable and even, in some eyes, a desirable ideal. Needless to say, the ideal will never in fact be realized. A great gulf separates the social insect from the not too gregarious, big-brained mammal; and even though the mammal should do his best to imitate the insect, the gulf would remain. However hard they try, men cannot create a social organism, they can only create an organization. In the process of trying to create an organism they will merely create a totalitarian despotism.
My Thoughts: A simply brilliant and incredibly important warning.
From Chapter 3: Over-Organization
The impersonal forces of overpopulation and over-oragnization, and the social engineers who are trying to direct these forces, are pushing us in the direction of a new medieval system. This revival will be made more acceptable than the original by such Brave-New—Worldian amenities as infant conditioning, sleep-teachings and drug-induced euphoria; but, for the majority of men and women, it will still be a kind of servitude.
My Thoughts: Yep, he predicted our current neo-feudalistic state in 1958.
From Chapter 4: Propaganda in a Democratic Society
Given a fair chance, human beings can govern themselves, and govern themselves better, though perhaps with less mechanical efficiency, than they can be governed by “authorities independent of their will.” Given a fair chance, I repeat; for the fair chance is an indispensable prerequisite. No people that passes abruptly from a state of subservience under the rule of a despot to the completely unfamiliar state of political independence can be said to have a fair chance of making democratic institutions work.
My Thoughts: Would’ve been nice if we thought about that before we invaded Iraq (of course, the problem is our goal was never to bring Democracy to Iraq in the first place).
From Chapter 4: Propaganda in a Democratic Society
In regard to propaganda the early advocates of universal literacy and a free press envisaged only two possibilities: the propaganda might be true, or it might be false. They did not foresee what in fact has happened, above all in our Western capitalist democraciesthe development of a vast mass communications industry concerned in the main neither with the true nor the false, but with the unreal, the more or less totally irrelevant. In a word, they failed to take into account man’s almost infinite appetite for distractions.

For conditions even remotely comparable to those now prevailing we must return to imperial Rome, where the populace was kept in good humor by frequent, gratuitous doses of many kinds of entertainmentfrom poetical dramas to gladiatorial fights, from recitations of Virgil to all-out boxing, from concepts to military reviews and public executions. But even in Rome there was nothing like the non-stop distractions now provided by newspapers and magazines, by radio television and the cinema.
My Thoughts: This brings me to a short story I’d like to share. I was on the plane as I was reading this and I put down my book for a second to look around me. I had an aisle seat, and so was at a good vantage point from which to take stock of the plane. I was actually stunned to notice that there was not a single other person reading a book anywhere around me. I actually enjoy the lack of Wifi on flights as it forces me to engage in some old school book reading. To my surprise no one else seemed to see it that way. Horrifyingly, the only people that weren’t dozing off or watching television were still on their smart phones. Even worse, at least five of them seemed to be playing the same game! It looked like some sort of Tetris game with jewels. So despite the lack of Wifi, humanity’s ability for mindless entertainment and distraction prevailed. Wifi or no wifi, these folks were going to be on their “smart”phones one way or the other.
From Chapter 5: Propaganda Under a Dictatorship
Assembled in a crowd, people lose their powers of reasoning and their capacity for moral choice. Their suggestibility is increased to the point where they cease to have any judgement or will of their own. They become very excitable, they lose all sense of individual or collective responsibility, they are subject to sudden accesses of rage, enthusiasm and panic. In a word, man in a crowd behaves as though he had swallowed a large dose of what I have called “herd-poisoning.”

Reading is a private, not a collective activity. The writer speaks only to individuals, sitting by themselves in a state of normal sobriety. The orator speaks to masses of individuals, already well primed with herd poison. They are at his mercy and, if he knows his business, he can do what he likes with them.
My Thoughts: This is something to always be aware of. Oration to crowds is the most effective form of propaganda distribution and brainwashing.
From Chapter 5: Propaganda Under a Dictatorship
In Hitler’s words, the propagandist should adopt “a systematically one-sided attitude towards every problem that has to be dealt with.” He must never admit that he might be wrong or that people with a different point of view might be even partially right. Opponents should not be argued with; they should be attacked, shouted down, or, if they become too much of a nuisance, liquidated. The morally squeamish intellectual may be shocked by this kind of thing. But the masses are always convinced that “right in on the side of the active aggressor.”
My Thoughts: This is why Obama just lies non-stop with zero shame. His strategy is to just stick to the propaganda and go with it at all costs, no matter how irrational and obviously deceptive.
From Chapter 6: The Arts of Selling
People may start out with an initial prejudice against tyrants; but when tyrants or would-be tyrants treat them to adrenalinreleasing propaganda about the wickedness of their enemies- particularly of enemies weak enough to be persecuted-they are ready to follow him with enthusiasm.

Almost all of us long for peace and freedom; but very few of us have much enthusiasm for the thoughts, feelings and actions that make for peace and freedom. Conversely almost nobody wants war or try nanny; but a great many people find an intense pleasure in the thoughts, feelings and actions that make for war and tyranny.
My Thoughts: That’s probably the scariest and most depressing thing I read.
Chapter 6: The Arts of Selling
“Both parties,” we were told in 1956 by the editor of a leading business journal, “will merchandize their candidates and issues by the same methods that business had developed to sell goods. These include scientific selection of appeals and planned repetition…The political merchandisers appeal only to the weakness of voters, never to their potential strength. They make no attempt to educate the masses into becoming fit for self-government, they are content merely to manipulate and exploit them.

In one way or another, as vigorous he-man or kindly father, the candidate must be glamorous. He must also be an entertainer who never bores his audience. Inured to television and radio, that audience is accustomed to being distracted and does not like to be asked to concentrate or make a prolonged intellectual effort. All speeches by the entertainer-candidate must therefor be short and snappy. The great issues of the day must be dealt with in five minutes at the most-and preferably (since the audience will be eager to pass on to something a little livelier than inflation or the H-bomb) in sixty seconds flat. The nature of oratory is such that there has always been a tendency among politicians and clergymen to over-simplify complex issues. From a pulpit or a platform even the most conscientious of speakers finds it very difficult to tell the whole truth. The methods now being used to merchandise the political candidate as though he were a deodorant positively guarantee the electorate against ever hearing the truth about anything.
My Thoughts: It’s simply incredible how clearly he saw all of this more than fifty years ago.
From Chapter 7: Brainwashing
The effectiveness of political and religious propaganda depends upon the methods employed, not upon the doctrines taught. These doctrines may be true or false, wholesome or perniciousit makes little or no difference. If the indoctrination is given in the right way at the proper stage of nervous exhaustion, it will work. Under favorable conditions, practically everybody can be converted to practically anything.
From Chapter 8: Chemical Persuasion
That a dictator could, if he so desired, make use os these drugs for political purposes is obvious. He could ensure himself against political unrest by changing the chemistry of his subjects’ brains and so making them content with their servile condition…But how, it may be asked, will the dictator get his subjects to take the pills that will make them think, feel and behave in the ways he finds desirable? In all probability it will be enough merely to make the pill available…But the demand of the American public for something that will make life in an urban-industrial environment a little more tolerable is so great that doctors are now writing prescriptions for the various tranquilizers at the rate of forty-eight millions a year.
My Thoughts: Yep, it is definitely a huge problem that such a huge percentage of the population is drugged up pretty much 24/7.
From Chapter 8: Chemical Persuasion
Too much tension is a disease; but so is too little. There are certain occasions when we ought to be tense, when an excess of tranquillity (and especially of tranquility imposed from the outside, by a chemical) is entirely inappropriate.
My Thoughts: This is very similar to what Martin Luther King wrote in his “Letter from Birmingham Jail,” in which he states:
“Actually, we who engage in nonviolent direct action are not the creators of tension. We merely bring to the surface the hidden tension that is already alive. We bring it out in the open, where it can be seen and dealt with. Like a boil that can never be cured so long as it is covered up but must be opened with all its ugliness to the natural medicines of air and light, injustice must be exposed, with all the tension its exposure creates, to the light of human conscience and the air of national opinion before it can be cured.”
From Chapter 9: Subconscious Persuasion
In the light of what has been said about persuasion-by-assocation and the enhancement of emotions by subliminal suggestion, let us try to imagine what the political meeting of tomorrow will be like. The candidate (if there is still a question of candidates), or the appointed representative of the ruling oligarchy, will make his speech for all to hear. Meanwhile the tachistoscopes, the whispering and squeaking machines, the projectors of images so dim that only the subconscious mind can respond to them, will be reinforcing what he says by systematically associating the man and his cause with positively charged words and hallowed images, and by strobonically injecting negatively charged words and odious symbols whenever he mentions the enemies of the State or the Party…Because all of this is still safely in the future, we can afford to smile. Ten or twenty years from now, it will probably seem a good deal less amusing. For what is now merely science fiction will have become everyday political fact.
My Thoughts: We are living it and there’s certainly nothing amusing about it.
From Chapter 10: Hypnopaedia
A person in deep sleep is unsuggestible. But when the subjects in light sleep are given suggestions, they will respond to them. Mr. Barber found, the the same way that they respond to suggestions when in the hypnotic trance.

From the heightened suggestibility associated with light sleep and hypnosis let us pass to the normal suggestibility of those who are awakeor at least who think they are awake. (In fact, as the Buddhists insist, most of us are half asleep all the time and go through life as somnambulists obeying somebody else’s suggestions. Enlightenment is total awakens. The word “Buddha” can be translated as “The Wake.”)
From Chapter 11: Education for Freedom
Freedom is therefore a great good, tolerance a great virtue and regimentation a great misfortune.

The genetic standardization of individuals is still impossible; but Big Government and Big Business already posses, or will very soon possess, all the techniques for mind-manipulation described in Brave New World, along with others of which I was too unimaginative to dream. Lacking the ability to impose genetic uniformity upon embryos, the rulers of tomorrow’s over-populated and over-organized world will try to impose social and cultural uniformity upon adults and their children. To achieve this end, the will (unless prevented) make use of all the mind-manipualting techniques at their disposal and will not hesitate to reinforce these methods of non-rational persuasion by economic coercion and threats of physical violence. If this kind of tyranny is to be avoided, we must begin without delay to educate ourselves and of children for freedom and self-government.
From Chapter 11: Education for Freedom
But unfortunately correct knowledge and sound principles are not enough. An unexciting truth may be eclipsed by a thrilling falsehood. A skillful appeal to passion is often too strong for the best of good resolutions. The effects of false and pernicious propaganda cannot be neutralized except by a thorough training in the art of analyzing its techniques and seeing through its sophistries.

In cases where the selecting and abstracting have been dictated by a system that is not too erroneous as a view of the nature of things, and where the verbal labels have been intelligently chosen and their symbolic nature clearly understood, our behavior is apt to be realistic and tolerably decent. But under the influence of badly chosen words, applied, without any understanding of their merely symbolic character, to experiences that have been selected and abstracted in the light of a system of erroneous ideas, we are apt to behave with a fiendishness and an organized stupidity, of which dumb animals (precisely because they are dumb and cannot speak) are blessedly incapable.
My Thoughts: Essentially, the reason humanity is able to create such gigantic instances of suffering relates to our higher intelligence combined with our ability to be easily brainwashed and manipulated by the nastiest of humans on the bell curve. 
From Chapter 12: What Can Be Done?
Under the relentless thrust of accelerating over-population and increasing over-organization, and by means of ever more effective methods of mind-manipulation, the democracies will change their nature; the quaint old formselections, parliaments, Supreme Courts and all the restwill remain. The underlying substance will be a new kind of non-violent totalitarianism. All the traditional names, all the hallowed slogans will remain exactly what they were in the good old days. Democracy and freedom will be the theme of every broadcast and editorialbut Democracy and freedom in a strictly Pickwickian sense. Meanwhile the ruling oligarchy and its highly trained elite of soldiers, policemen, thought-manufacturers and mind-manipulators will quietly run the show as they see fit.

Or take the right to vote. In principle, it is a great privilege. In practice, as recent history has repeatedly shown, the right to vote, by itself, is no guarantee of liberty. Therefore, if you wish to avoid dictatorship by referendum, break up modern society’s merely functional collectives into self-governing, voluntarily co-operating groups, capable of functioning outside the bureaucratic systems of Big Business and Big Government.

Over-population and over-organization have produced the modern metropolis, in which a fully human life of multiple personal relationships has become almost impossible. Therefore, if you wish to avoid the spiritual impoverishment of individuals and whole societies, leave the metropolis and revive the small country community, or alternatively humanize the metropolis by creating within its network of mechanical organization the urban equivalents of small country communities, in which individuals can meet and cooperate as complete persons, not as the mere embodiments of specialized functions.
My Thoughts: His ultimate conclusion, and one with which I agree, is that we need to decentralize to main free.
The older dictators fell because they could never supply their subjects with enough bread, enough circuses, enough miracles and mysteries.
If you still haven’t had enough Huxley, I strongly suggest watching the following video. I hope you found this helpful, and as always…

Tuesday, January 21, 2014

What Recovery? Middle America Has Been Decimated; Why We Must #AudittheFed

Does anyone see the pattern here? Clearly the USA is suffering from twisted economic policy, but do you know WHY? Audit the Federal Reserve and find out!











Monday, January 20, 2014

Where Does China Import Its Energy From (And What This Means For The Petroyuan)


From Zerohedge.

Before the "shale revolution" many considered that the biggest gating factor for US economic growth is access to cheap, abundant energy abroad - indeed, US foreign policy around the world and especially in oil rich regions was largely dictated by the simple prerogative of acquiring and securing oil exposure from "friendly" regimes. And while domestic US crude production has soared in recent years, making US reliance on foreign sources a secondary issue (yes, the US is still a major net importer of crude) at least as long as the existing stores of oil at domestic shale sites are not depleted, marginal energy watchers have shifted their attention elsewhere, namely China.
Recall that as we reported in October, a historic event took place late in the year, when China (with 6.3MMbpd) officially surpassed the US (at 6.24MMbpd) as the world's largest importer of oil. China's reliance on imports is likely only to grow: "In 2011, China imported approximately 58 percent of its oil; conservative estimates project that China will import almost two-thirds of its oil by 2015 and three-quarters by 2030."
Which means that the question that most were focused on before, i.e., where the US gets its oil, and what is the US energy strategy, refocuses to China.
We have some answers.
The graphic below summarizes all the known Chinese energy import transit routes.
Some additional color from the 2013 Annual Report to Congress on all key developments relating to China:
China's Energy Strategy

China’s engagement, investment, and foreign construction related to energy continue to grow. China has constructed or invested in energy projects in more than 50 countries, spanning nearly every continent. This ambitious investment in energy assets is driven primarily by two factors. First, China is increasingly dependent upon imported energy to sustain its economy. A net oil exporter until 1993, China remains suspicious of international energy markets. Second, energy projects present a viable option for investing China’s vast foreign currency holdings.

In addition to ensuring reliable energy sources, Beijing hopes to diversify producers and transport options. Although energy independence is no longer realistic for China, given population growth and increasing per capita energy consumption, Beijing still seeks to maintain a supply chain that is less susceptible to external disruption.

In 2011, China imported approximately 58 percent of its oil; conservative estimates project that China will import almost two-thirds of its oil by 2015 and three-quarters by 2030. Beijing looks primarily to the Persian Gulf, Africa, and Russia/Central Asia to satisfy its growing demand, with imported oil accounting for approximately 11 percent of China’s total energy consumption.

A second goal of Beijing’s foreign energy strategy is to alleviate China’s heavy dependence on SLOCs, particularly the South China Sea and the Strait of Malacca. In 2011, approximately 85 percent of China’s oil imports transited the South China Sea and the Strait of Malacca. Separate crude oil pipelines from Russia and Kazakhstan to China illustrate efforts to increase overland supply. A pipeline that would bypass the Strait of Malacca by transporting crude oil from Kyuakpya, Burma to Kunming, China is currently under construction with an estimated completion time of late 2013 or early 2014. The crude oil for this pipeline will be supplied by Saudi Arabia and other Middle Eastern and African countries.

Given China’s growing energy demand, new pipelines will only slightly alleviate China’s maritime dependency on either the Strait of Malacca or the Strait of Hormuz. Despite China’s efforts, the sheer volume of oil and liquefied natural gas that is imported to China from the Middle East and Africa will make strategic SLOCs increasingly important to Beijing.

In 2011, China imported 14.3 billion cubic meters (bcm) of natural gas, or 46 percent of all of its natural gas imports, from Turkmenistan to China by pipeline via Kazakhstan and Uzbekistan. This pipeline is designed to carry 40 bcm per year with plans to expand it to 60 bcm. Another natural gas pipeline designed to deliver 12 bcm per year of Burmese-produced gas is under construction and estimated for completion in late 2013 or early 2014. This pipeline parallels the crude oil pipeline across Burma. Beijing is negotiating with Moscow for two pipelines that could supply China with up to 69 bcm of gas per year; discussions have stalled over pricing differences.
As for China's Top Crude suppliers as of 2011:
Finally, from a previous Zero Hedge post on this topic, here is why China's increasing reliance on Crude imports means that the ascent of the Petroyuan is assured, and why by implication the days of the Petrodollar may be numbered: an outcome which the US will hardly be pleased with.
So what does this shift in oil imports mean?
More than anything else, it is a sign that China will increasingly depend on global markets to satisfy its ever-growing oil demand. This necessitates further engagement with the international system to protect its interests, encouraging a fuller integration with the current liberal order. This will have effects on both China’s approach to its currency and its diplomatic demeanour.  
Derek Scissors wrote last week that this shift might usher in a world where oil is priced in RMB as opposed to solely in USD. This transition could only occur, however, if the RMB was made fully convertible and Beijing steps back from its current policy of exchange rate manipulation. Earlier this year, HSBC predicted that the RMB would be fully convertible by 2017, a reality that is surely hastened by its position as the single largest purchaser of foreign oil. A fully convertible RMB would be a “key step in pushing it as a reserve currency and enhancing its use in global trade, said Sacha Tihanyi, a strategist at Scotia Capital.
On the diplomatic side, while the United States is unlikely to withdraw from its role as defender of global oil production or guarantor of shipping routes, an increasing reliance on foreign oil will push Beijing toward a more engaged role within the international community. It is likely that we will see a change in Beijing’s approach to international intervention and future participation in multilateral counterterrorism initiatives—anything to ensure global stability. In the future, anything that destabilizes the oil market will increasingly harm China more than the United States. While Beijing views this increased import reliance as a strategic weakness, it a boon for those hoping to see Beijing grow into its role as a global leader.
Bottom line: as Chinese oil imports grow, Beijing will become increasingly reliant on the current market-oriented global system—this is nothing but good news for those that enjoy the status quo.

Forget the 1%, 85 People Own Pretty Much Everything


Articel from Zerohedge.

There is something morbidly gruesome and ironic in having the world's wealthiest people, among them the presidents and central bank heads of the world's most "advanced" nations, as well as the CEOs of the biggest corporations, sitting down in Davos - a place where the press passes alone cost thousands of dollars - and discussing global inequality: the same inequality that their policies and principles are responsible for. It is even more morbid when one considers that according to a recent Oxfam report, one that will be used in Davos itself, the disparity in wealth between the haves and the have nots has reached absolutely record proportions, surpassing any previous inequality gaps seen before and during the Great Depression.
Which brings us to the topic of wealth.
By now everyone is familiar with the popular wealth pyramid, which shows that "29 million, or 0.6% of those with any actual assets under their name, own $87.4 trillion, or 39.3% of all global assets."
One can extend that rule of thumb to say that almost half of the world’s wealth is now owned by just one percent of the population, and seven out of ten people live in countries where economic inequality has increased in the last 30 years.
However, for the best visual of the disparity between the haves and the have nots we go to Oxfam once more, which just penned the soundbite of the day, and possibly, of the week for suddenly very bleeding-heart Davos:
That's right: "the 85 richest people own the same wealth as the 3.5 billion poorest people" ... aka half the world's population.
Naturally this should come as no surprise: after all the past 5 years of this website have been, more than anything, a testament to the systematic theft, plunder and pillage of the global middle class by a small cabal of global financial oligarchs - those who have implicit control of the printing presses, who have the legal and legislative support of a few, actually make that all, corrupt and purchased politicians, who have merely made this wealth transfer from the poor, not so poor and modestly wealthy to the wealthiest, possible.
And not only possible, but the most rapid it has ever been in history.
The chart below from OxFam summarizes the unprecedented speed of wealth transfer going to the richest 1% courtesy of Bernanke et al's theft-enabling, and Congress-approved policies.
Some of the findings by Oxfam:
Given the scale of rising wealth concentrations, opportunity capture and unequal political representation are a serious and worrying trend. For instance:
  • The bottom half of the world’s population owns the same as the richest 85 people in the world.
  • Almost half of the world’s wealth is now owned by just one percent of the population.
  • The wealth of the one percent richest people in the world amounts to $110 trillion. That’s 65 times the total wealth of the bottom half of the world’s population.
  • Seven out of ten people live in countries where economic inequality has increased in the last 30 years.
  • The richest one percent increased their share of income in 24 out of 26 countries for which we have data between 1980 and 2012.
  • In the US, the wealthiest one percent captured 95 percent of post-financial crisis growth since 2009, while the bottom 90 percent became poorer.
Oxfam's conclusions should be perfectly known in advance by anyone who has been following said systematic wealth plunder over the years:
Some economic inequality is essential to drive growth and progress, rewarding those with talent, hard earned skills, and the ambition to innovate and take entrepreneurial risks. However, the extreme levels of wealth concentration occurring today threaten to exclude hundreds of millions of people from realizing the benefits of their talents and hard work.

Extreme economic inequality is damaging and worrying for many reasons: it is morally questionable; it can have negative impacts on economic growth and poverty reduction; and it can multiply social problems. It compounds other inequalities, such as those between women and men. In many countries, extreme economic inequality is worrying because of the pernicious impact that wealth concentrations can have on equal political representation. When wealth captures government policymaking, the rules bend to favor the rich, often to the detriment of everyone elseThe consequences include the erosion of democratic governance, the pulling apart of social cohesion, and the vanishing of equal opportunities for all. Unless bold political solutions are instituted to curb the influence of wealth on politics, governments will work for the interests of the rich, while economic and political inequalities continue to rise. As US Supreme Court Justice Louis Brandeis famously said, ‘We may have democracy, or we may have wealth concentrated in the hands of the few, but we cannot have both.’

Oxfam is concerned that, left unchecked, the effects are potentially immutable, and will lead to ‘opportunity capture’ – in which the lowest tax rates, the best education, and the best healthcare are claimed by the children of the rich. This creates dynamic and mutually reinforcing cycles of advantage that are transmitted across generations.
It is this threat of a global revolution that suddenly has the panties of all the Davos participants in a bunch: because regardless of the amounts of cholesterol consumed over the past 5 years of epic wealth transfer, we are confident all of these individuals recall well what happened in France in 1789.
This also means that these unbelievably wealthy men and women will suddenly sit down and fight to undo all the legalized theft they have engaged in since the Lehman collapse, and instead fight for the common man.... The same common man, who would be shot on sight if seen walking through one of Davos' marble halls without credentials, by the specially trained army of guards protecting the world's if not best, then certainly wealthiest.
And just who are these kind-hearted Robin Hoods, who will gladly take from themselves and give to the poor? Here, courtesy of RanSquawk, is a very partial list of the people the world's poor should pray to tonight (and every other night):
President and Prime Ministers from the G20 countries who will address the Meeting include:
  • Tony Abbot, PM of Australia and 2014 Chair of the G20
  • Shinzo Abe, PM of Japan
  • David Cameron, PM of the UK
  • Enrico Letta, PM of Italy
Some of the leading public figures who will be participating in the 2014 Annual Meeting are:
  • Mark J. Carney, Governor of the Bank of England
  • Mario Draghi, President, European Central Bank
  • Haruhiko Kuroda, Bank of Japan
  • Thomas J.  Jordan, Swiss National Bank
  • Angel Gurría, Secretary-General, Organisation for Economic Co-operation and Development (OECD)
  • Jim Yong Kim, President, The World Bank, Washington DC
  • Christine Lagarde, Managing Director, International Monetary Fund (IMF)
  • Ban Ki-moon, Secretary-General, United Nations, New York
  • Jacob J. Lew, US Secretary of the Treasury
  • Olli Rehn, Vice-President, Economic and Monetary Affairs, European Commission
  • Hassan Rouhani, President of the Islamic Republic of Iran
  • Shimon Peres, President of Israel
Some of the leading business figures who will be participating in the 2014 Annual Meeting are:
  • Lloyd Blankfein  - Goldman Sachs
  • Douglas Flint – HSBC Holdings
  • Antony Jenkins – Barclays
  • Laurence Fink – BlackRock
  • Christophe de Margerie – Total
  • Bob Dudley – BP
  • Klaus Kleinfeld – Alcoa
  • Doug McMillon – Wal - Mart
  • Marissa Mayer - Yahoo
  • Joe Kaeser - Siemens
  • Lakshmi Mittal – ArcelorMittal
  • Sir Martin Sorrel – WPP
  • Paul Bulxke - Nestle
Our advice to the disenfranchised and the poor around the globe hoping that any of the people listed above will do much if anything to help their plight: it will get worse... before it gets much worse.

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