THE NEOLIB MODEL: Will it get rid of democracy before democracy rids us of the model?

neolibsorcery

mefacebookMore promises, more excuses, more ludicrous claims, more failures….on and on the financialised model of capitalism stumbles. But as criticisms of it arise, élite narratives get darker, and its reactions increasingly illiberal. Yet again, The Slog ponders what real motives are in play, and what end ‘synthesis’ the 3% have in mind: is there a conspiracy, or just a bunch of sociopaths with similar problems?

Having used Brexit as the culprit for the last few weeks, the markets are now looking towards the US Presidential election as the next reason why everything is upside down, facing backwards and slowing down at one and the same time. After that they’ll have the French Presidential contest to fire at, and months of nailbiting as to whether Le Pen will win and set off Frogxit.

But there’s a deal of Freudian slip on show from the skirts of Madamoiselle Néoliberale at the moment, and it’s this: the tone apparent in all this bleating reveals one thing in common being quietly pushed: ‘This pesky damned democracy is a pain in the ass’.

Schäuble kicked off the process in 2009 by flatly refusing to let Papandreou hold a referendum on the Greek debt he’d inherited. The Wizened Wheelchair then tried it again for the next Greek elections, but this time even Sarkozy told him to shutTF up.

The EU loathes democracy: it gets in the way. Why else would you have the President, the Executive Commission and the Eurogroupe fiscal committee completely unelected? Because the experience of the Sprouts has been that, every time they have an insane idea, the Irish, the French, the Spaniards and the Greeks vote against it. As Tony Benn wisely remarked years ago, from day one the idea was to create a corporate state bulwark between West and East: très Gaulliste, c’est sur…except that old Bigconk was a democrat who refused to give in to the Nazis.

For all his shady dealings and consciously misleading buffoon act, Boris Johnson was right to suggest that the current EU federalist drive is simply Hitler’s ambition for Europe achieved without all that messy Blitzkrief mularkey. Some self-appointed ‘experts’ have been trolling around over the weekend calling the parallel “mangled history” but it most definitely isn’t. If you look at the advertising and leaflets put out by the Nazis in the occupied territories after 1940, they are highly consistent in calling Europeans to join the “anti-bolshevik army” with their own special divisions. Many were embarrassed by this later, but the truth is that the Europäische Freiwillige (meaning “European Volunteers”) made up a staggering 38 Nazi non-German divisions by 1942, and the volunteers to be Waffen-SS exterminators came in thick and fast: the Freiwilligen made up one half of the entire Waffen-SS fighting force on the Eastern Front.

But this post doesn’t set out to be another ‘FFS look at the obvious and get out of the EU’: rather, it wants to shout the unmentionable. Which is, not only do some élites have the democratic political system as their next main target, a terrifying percentage of our electorates lack any real commitment to it.

This is not a planned conspiracy: as always, it’s a bunch of people with the same undeserved superiority complex coming to the same conclusion: “Basil Fawlty was right, this hotel would run better if the guests did as they were told and took what they were given”.

The tenor of the latest Bloomberg articles on volladiverdeeee is to position the democratic process as an anti-catalyst that delivers uncertainty to business. And of course, nothing must be allowed to get in the way of business: we must all show that we’re “open for business”…..even if that means the demolition of the Constitution, the impoverishment of the People, and the degrading of all-important elements in the socio-administrative infrastructure.

I find it bitterly ironic that fourth-rate Western politicians have rendered this a much easier argument to make to those of an ignorant and/or narrow intellect; for to be BoJo for a sentence here, the bickering clowns of Weimar had exactly the same effect. “Let’s just dump the lot of them,” suggested Dolfi – and so they did.

The irony is that the political class is useless because it only obeys the munnneeee….and the money comes from the giant banks, multinationals, and media companies. We the voters don’t get a look in: we merely get promised lots of goodies, and then get to see lots of baddies like Sir Philip Green, Rupert Murdoch or Gary Cohn evading the Law.


 

But one thing above all continues to confuse and at times mystify me: where do these allegedly clever élites think they’re going with their project to make mutual or public owership of stuff the work of the Devil? What do they see evolving out of their obviously flawed model of more credit and lower wages…of in effect, the wholesale transfer of power from labour to capital?

I recognise that regular Sloggers will see where I’m going here, because we’ve been down this road together many times before. But to be honest, I still don’t have what I would call an answer that is in any way convincing.

For example….one simple observation: robots don’t have tea and pee breaks or periods and broken bones – and they don’t want to be paid, just yet. But robots don’t consume either. So how are the humans left going to make up for non-robotic consumption? And more to the point, if the value of their wages falls 33% every twenty years, how will the humans earning less or getting less and less welfare be able to even keep consuming….let alone consume more.

We have an economic model which is by definition deflationary, and a banking model  that requires sovereign money printing….and so is by definition inflationary. Where’s that going – do they want me to believe that the one will cancel the other out?

Let’s say bank bailins become more common….as they must. So over a year, say, 450,000 people lose their deposits. How much consuming will they do afterwards?

Over in the UK, some 3.2 million older women are in the process of having their pensions put back by from 2-6 years. Work out what that will take out of the economy, and/or cost in other benefits.

Take my example: I worked out two weeks ago that 7 years of Zirp have cost me a staggering £28,400 in lost interest – and QE slashed my pension by a third as I’d gone into ‘bear notes’, expecting markets to decline….as of course they should have done. There are some 4.2 million baby-boomers in a similar position to mine. Do the multiplication: these are big numbers, and they all spell one thing – lost demand.

Extrapolating forward, none of it makes an iota of sense. More people on welfare, more currency printing to pay their benefits, higher and higher sovereign debts, falling global demand, higher and higher trade deficits, more privatisation of healthcare, fewer in the labour force that can afford such care, more days off work, more robots, less investment in education, fewer workforce skills developed, long term unemployment, more welfare, more money-printing, shrinking economies, more welfare cuts, banks unable to make a turn on Zirp or Nirp, more bank failures, more bailins, more lost demand, more welfare, greater and greater inequities of wealth, the decline of mass consumption, and thus the inability to kickstart a mass consumption economy based on credit nobody can afford (or they’re maxed out), more bank failures after collapsing credit sales, plummeting market valuations of banks and manufacturers, more QE, unrepayable sovereign debt alongside property asset bubbles, more affordable housing covering the remaining land given over to producing food…..

So with me – as this is so blindingly obvious – it always comes down to two possibilities:

  1. Are those in charge stupid?
  2. Are those in charge mad?

And there are those everywhere on the internet that say “It’s a conspiracy….there’s a plan”.


 

Stupid people don’t have the vision or skills to work out the details of a conspiracy, or ‘caper’ if you like. And mad people have plans that can only end in tears, because their belief system never fits reality. Furthermore, they’re useless at sharing in a conspiracy, because their world revolves around themselves: they squabble with others, and so either the entire mission collapses, or they purge the naysayers and become dictators.

I simply do not believe that the Bilderbergers, Elders of Zion, central bankers, military or media moguls are conspiring either as sectors or severally. If they were, we wouldn’t have such a variety of views, policies, models and goals. Summers goes to Davos, as does Blankfein; you couldn’t find two people further apart on policy. The BoJ is experimenting with Nirp, the BoE says it would never go near it, period. Murdoch is steadfast in his belief that paywalls can work, Dacre says no way.

I have long believed that the gold price is manipulated in the same way that Libor was: but those are cases where two relatively homogenous communities need to save their necks – respectively by stopping a gold rush away from stocks, and by ensuring profits during a period of acute cash flow and credit shortages.

Thus, to keep gold cheap – and then stop trading in it while revaluing it in bank accountancy – is again one consistent community cheating to restore their control. To abolish cash – and then rejig all the sovereign debt equations – is by contrast are far more complicated task assuming the same consistency of goals: and for the time being, not only does that not apply, it would move the ClubMed economies off the flatlining table and into the mortuary.

So are they all stupid, and convinced that can-kicking can just go on and on until “something turns up”; or are they mad, and stand ready to put some diabolical actions into operation?

At various times on various sites, I have seen the following theories:

  • The useless poor will be variously gassed/allowed to starve/eaten in order to get rid of ‘the problem’.
  • They will form a vast domestic and convenience class of slaves doing everything the 3% are too busy making money to do: gardening, delivering, servicing, painting, cleaning and so on. That means 32 servants for every megarich person: quite a retinue.
  • Everyone with an IQ below 115 will be covertly sterilised via welfare food supplies.
  • The 3% will retreat behind gated communities guarded by former navy seals, SAS commandos and crack Russian combat soldiers.
  • All manufacturing will be robotised to cater for very high-value items aimed at the 3%, and former skilled industrial labour will work tending the livestock, tilling the crops and weaving baskets.

I doubt if anyone beyond a few nutters who stroke cats and live under the seabed entertain ideas like those. But the startling thing is, project the current trends forward and that’s where one or more of those ‘solutions’ ends up….if the élites retain control of the situation.

And that’s where I differ from most soothsayers: I think the overwhelming majority of the shovers and makers are just greedy opportunists in denial, and capable of saying each and every morning that things can all work out. I don’t think they have a plan beyond ensuring that wealth, security guards and helicopter pads can keep them safe. Their goggly-saucer eyes see only advantage. Their ever-open mouths consume only full glasses of superb wine and cing-toque cuisine. Their plausible manners seek the total conviction of those they wish to persuade. And their compassion is absent….except when used on a sleeve as part of the persuasion process.

I think this 90% of the 3% will be wrong-footed by a random event or events. There will be a spark, followed by a social impasse, followed in turn by a panic. Following which – as the barons of the DDR found – no amount of satellites, surveillance, armed robocops or informants will be able to get a grip on seven things happening at once on four continents.

Nobody – but nobody – knows what will happen afterwards. The biggest danger is the filling of the vacuum (left after élite super-optimism collides with reality) by person or persons very likely to be unfit for the purpose of regaining some kind of balance between the material and the fulfilling.

Where’s Jeremy Bentham when you need him, that’s what I say.

From the Weekend Slog: The tricky task of waking up Middle England

35 thoughts on “THE NEOLIB MODEL: Will it get rid of democracy before democracy rids us of the model?

  1. Take it from an Irishman.
    Because we have a Constitution in our country changes to the European SuperState must be put by the incumbent Irish government to the people for ratification through referendum.

    In June 2008, the government put the Lisbon Treaty to the Irish electorate and the Irish electorate voted to reject the referendum.
    The European SuperState summoned the Irish government and instructed them to put a second referendum to the Irish electorate – and the Irish electorate voted to ratify the second referendum.

    It seems that the will of the people in the first referendum was not good enough for the Irish government or the European SuperState.

    I’d urge all British citizens eligible to vote to vote in favour of Brexit because any semblance of democracy in the European SuperState is a lie.

    Liked by 4 people

  2. Paul.

    Why, oh, why did the Irish change their minds? If the EU had asked me to ‘vote again’, even if I had voted ‘yes’ on the first ballot, I would have voted ‘no’ on the second. Just so as they heard right the first time.

    Liked by 4 people

  3. You’re getting there, JW.

    The plan is called Agenda 21, the UN plan for the 21st century. Behind the cloak of environmentalism it aims for a Totalitarian World Govt & a 93% population reduction: according to Georgia Guidestones.

    site: http://www.surviveunagenda21depopulation.com
    Gordon Muir has put a lot of good work in here.

    Plot goes back to May 1st 1776,at least, when ex-jesuit Adam Weishaupt completed a plan for Rothschild’s aim of world domination.
    The banksters fostered both Fascism & Communism to provoke WW II & the cold war. Constant war = constant debt = constant profits for the banksters & their military/industrial corporate cronies. The 25 point strategy included control of media, ruin youth with sex & drugs, & espouse liberal policies.
    Book: Pawns in the Game, william Guy Carr, 1955.

    John Doran.

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  4. John Doran….even if that’s true, where do They go from there? Stuck on the 3rd rock from the Sun in Their enclaves, doing what exactly? Incest, eat each other out of boredom? Sooner or later They are going to run out of road and fall off a cliff. I don’t care how much money anyone has as no-one owns anything, let alone controls anything as that’s all ego. 1) you can’t take it with you 2) it doesn’t stop you from dying 3)….well there isn’t a 3 ‘cos what else is left?

    It’s all a good game of Charades!

    Liked by 1 person

  5. Whilst i agree to certain extent that it isn’t planned,some planning has gone into it getting this far,the corrupting of police,politicians,judiciary media etc etc has been planned and systematic! the reason cover up of care home abuse is that it has been used,just like homosexuality was in the past! to have a hold on a smallish but big enough sample of the institutions of state to be compromise them!
    Flat earth economics can only lead to oppression and depravity, for how long who knows,but humanity and nature will take its course,Ayn Rand,Nash,Friedman Hayek and their disciples will be found out!
    Because humans didn’t take over the plains to cultivate by acting as individuals,Cities where not built because humans acted has individuals the NHS may well be the highest level of human compassion and working together that the human race may ever achieve because it won’t be rebuilt by individualism,nothing achieved by humans has ever been achieved by a single human on his or her own.
    And nothing that as suppressed this collective drive as ever survived to hold humanity hostage for too long!

    Like

  6. Well said Paul, the Irish don’t do bollocks. In the case you mention, it was another case of “vote early and often”.
    The Sprouts keep on referending til they get the answer they want.
    I’ll sing a camallye to you tonight

    Like

  7. Alan you’re obviously bloody-minded like me. It terrifies other people, but upside down hedge-hopping at 450 mph is the only way to fly.

    Like

  8. Rather than mad or stupid – and some of those who like to think they are in charge may be a bit of either, or both – they are united by vanity.

    vain (adjective)
    1.
    having or showing an excessively high opinion of one’s appearance, abilities, or worth.
    synonyms: conceited, narcissistic, etc.
    2.
    producing no result; useless.
    synonyms: futile, pointless, worthless, nugatory, to no purpose, in vain, etc.

    “The tyrant is a child of Pride
    Who drinks from his sickening cup
    Recklessness and vanity,
    Until from his high crest headlong
    He plummets to the dust of hope.”
    Sophocles, Oedipus Rex

    Liked by 2 people

  9. He left us with further useful instruction here (from Antigone):

    Nothing so evil as money ever grew to be current among men. This lays cities low, this drives men from their homes, this trains and warps honest souls till they set themselves to works of shame; this still teaches folk to practise villainies, and to know every godless deed. But all the men who wrought this thing for hire have made it sure that, soon or late, they shall pay the price.

    Aye, the old ones are the best..

    Liked by 1 person

  10. Neolib, elitist dictatorship or democracy and self determination the latter by the way the EU does not offer .. period.

    Now think of a pendulum and it swing from left to right then back again because it is cyclic and the same for the neocons and their neolib model. Eventually though it gets smashed ther other way and they have done so well to keep it going for so long as WW1 and WW2 did not remove them from power. Hitler like Saddam does serve a purpose, to wipe out those who contest their position = the elites.

    Their fear of losing this power though ends up with the EU style type dictatorships that continually reinforce the concept for many time for the b$stards to f’off but they like Cameron will never go peacefully. So in the end they get ejected the most brutal way imaginable, has to be, the called it by their ignorance of the treatment of how bullies need treating.

    Reckon the concepts are so transparent and are only ever illegal because those trying to be dictators define the law and it is not based on what is good for the majority.

    Like

  11. You mean we need a class of enlightened and public-spirited statesmen?
    For the lack of a nail the kingdom is lost.

    I think what has happened is the selfish opportunists, and the easily-bidden, have sensed that they better be on the right side of the war. The war between rich and poor. Neither side (although one of them doesn’t realise they are in a battle to the death) thinks they need a middle class, maybe the computers do that work too.
    The rich think they can erase whatever democracy we think we have, and replace it with ‘the greater good, by their good grace. They have figured out this is easier done if there are no nations, no cash, and no alternative means of hiding wealth.
    They are doing quite well so far, but as greedy men always do, they are too impatient.
    Whilst the poor are happy with promises for now, the day will come when they won’t work, and won’t allow their taxes to be paid. Its going to happen later than we all thought, but itsa happenin’

    Re. The Plan:
    If Meyer Rothschild thought it would take a couple of hundred years to get where he wanted his family to be, and reckoned they could control their family breeding so they all stayed on-message, and then thought once it was all in place, he still wouldn’t need an army, then I’m Gunga Din.

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  12. Good Lord did you see it? Did you see it on the TV? Cable, Osborne and the delightful Balls, all stood in a row in a massive secure room in front of a hand picked audience.

    Two fired ex MP’s and a compulsive liar. Roll on Brexit, my mind is made.

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  13. “Cable, Osborne and the delightful Balls” and Cameron and Blair and Madelson and Brown – Remainiacs all. Having seen them “at work” I fail to understand how anyone (including their partners) could possibly vote for their position on the EU……..

    Liked by 1 person

  14. Im BACK :

    “I too have fears about overcrowding and multicultural denialism in 21st century Britain.”

    But living in rural France and having a strong personal “Me too” following takes the edge off them.

    Living in a Speed-Jigsaw may well appeal to those with the nous and travel-papers to navigate around the scattered pieces, homing in on the most promising areas.

    Like

  15. Reimer

    You are a duble shit and duble banned with extension for life.
    I wish I was a juge and can hand down sentences to bad peoples.
    Today I will write more articles on the bad bad world from my farmette in France.

    Liked by 1 person

  16. It would be best to learn more about what neoliberalism is and for that I suggest searching out Philip Mirowski on Youtube and reading his books especially Never Let a Serious Crisis Go To Waste. He is a professor of history at Notre Dame (US) but a particular kind of history, economic history.

    Some links

    The book mentioned above is a vital read. Get it. Read it, twice.

    Liked by 1 person

  17. Reimer

    In case you hadn’t noticed, that John Ward is a troll and not me, the nice mild-mannered, perfect pactifist of pastoral climes.
    This is Mr Trollexic’s farewell debut performance.

    Liked by 1 person

  18. HK
    I do notice that every time I spell out the effects of neoliberalism, I’m told that what I described isn’t really neoliberalism at all.
    Put any ideology in the hands of Homo sapiens, and he will eff it up. That’s why I don’t do ideologies…I prefer philosophy based on social anthropology.

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  19. Yes, we only publish comments that agree with our never ending tales of the bad world where everyone is mostly doing ok except us.

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  20. I hypothesise that the small percentile who hold the largest share of global wealth have strong pathological tendencies. When the rate of wealth accumulation slows what’s the betting that the start to fall on one another?

    Like

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