Some really sobering financial news

[Alan Stubbs]

Who were 'Karl's mob'? Marxism has never been applied in practice.

 

 

You're right. It's been Communism (Russia / Cuba), Marxism-Leninism (China under Mao Tse Tung) or Marxist Revisionism (China after Mao)..

 

I can't think of the name of the American economist back before the Wall Street Crash (I don't know why, but Douglas North comes to mind), but he was famous for a series of essays which propounded the idea that Communism on its own could never work. It promoted a combination of jealousy / insecurity which meant that arms were required in an exponentially

increasing amount with an economy which would ultimately fail to generate the wherewithall to produce them. He also maintained that Capitalism would be the only economic model capable of out-doing Communism

and maintained that all the USA needed to do was maintain their spending on arms and technology in order to bring down the Russian economy.

 

OK, it took time, but up until last year, I'd have said he had a point. You're seeing the results of global capitalism in the current financial situation. Ironically, both the Russians and Chinese have eonomies and resources the rest of the world envy.

Edited January 24, 2009 by Alan Stubbs

[corydoras]

OK, it took time, but up until last year, I'd have said he had a point. You're seeing the results of global capitalism in the current financial situation. Ironically, both the Russians and Chinese have eonomies and resources the rest of the world envy.

Perhaps, but would you like to live in them Alan?

[Alan Stubbs]

Perhaps, but would you like to live in them Alan?

 

Cory, I didn't say I did!

 

Zimbabwe is a really good example of why I don't want to. For some reason, Communism invariably means dictatorship, and we always seem shocked at the levels of corruption from communist leaders (which must be some kind of oxymoron - all animals are created equal, but some oare more equal than others?)

 

However, Capitalism has had more than its fair share of corruption amongst politicians, so why do we express surprise?

[corydoras]

Cory, I didn't say I did!

 

Zimbabwe is a really good example of why I don't want to. For some reason, Communism invariably means dictatorship, and we always seem shocked at the levels of corruption from communist leaders (which must be some kind of oxymoron - all animals are created equal, but some oare more equal than others?)

 

However, Capitalism has had more than its fair share of corruption amongst politicians, so why do we express surprise?

Sorry alan that last one should have had a on the end, it was meant to be toungue-in-cheek. Chucking straw men around is not my style.

[Newt]

China has masssive resources but unfortunately, not the exact mix they need right now.

 

Their economy is actually not so healthy these days.

 

Businessweek.com Article from May, 2008

 

Los Angeles Times business article from November, 2008

 

Or just do a google search for China Factory Closing

[Alan Stubbs]

China has masssive resources but unfortunately, not the exact mix they need right now.

 

Their economy is actually not so healthy these days.

 

Businessweek.com Article from May, 2008

 

Los Angeles Times business article from November, 2008

 

Or just do a google search for China Factory Closing

 

 

Nice point, but although not exactly performing at present, it has the resources it can sell.

Rather like Russia selling energy to Europe, so the Chinese can, in theory, export. It would be the Chinese themselves which hinder this. One of their assets is a workforce which has indusrty costs a lot lower than in the West.

 

For a while, the Chinese could afford to run a deficit like the USA in order to adapt heir economy to a position where it will perform. Unlike us here in the UK who used the revenues from North Sea oil to repay Government debt only for recent governments to increase spending at a rate never before seen

[Newt]

Odd as it may seem to us, some Chinese companies are outsourcing parts of the manufacturing or assembly process to places where labor is even cheaper.

[captain cojones]

ive been reading a really sobering artice this afternoon regarding the state of the uk economy., and the choices faced,by those in charge.

the dependance on the financial sevices sector, and the isolation of having sterling,seen by these commentators,as being not backed up by sufficient gold reserves,or even "traditional industry"is leading to massive amounts of foriegn investors,getting rid of their sterling products.

in october and november last year,they got rid of 100,000 million pounds worth alone.

the authors,had three possible course of action.

1/ print money...giving rise to inflation,and making the middle classes poorer.

2/ go for a loan from the IMF, the usa,or the E.U................political suicide.

3/ apply to enter the euro............difficult,given the constant negative reporting of the same,by uk media.

 

some of the commentators,compared the uk banking system to iceland.saying "if there is a solvent uk bank............i dont know of it".worrying stuff, and im glad its not me having to make the decisions.

[raycab]

everyone should watch the money masters on google video it will explain why we are in this mess and how the bank of england and federal reserve was created.

[captain cojones]

everyone should watch the money masters on google video it will explain why we are in this mess and how the bank of england and federal reserve was created.

 

Dont think theres a need at the moment to go over and over, the causes of the problems.Thats pretty clear. Whats done is done.

More important,is to work on the solution.