Zero Point of Systemic Collapse

[Aetius Romulous]

Re: Zero Point of Systemic Collapse

An interesting essay and the author gets a lot of points right. Where he veers off into the ditch is best illustrated by the above quote-- the underlying assumption he makes is that "heavy government control" is some kind of solution to our problems. Which of course is exactly THE PROBLEM, not the solution-- our financial system is centrally controlled and managed by the federal reserve which is ostensibly an agent of the government. The problem of course is not whether we have government control or not, the problem is, who stands behind that government control. Governments are agents of the people and, like any agent, can be co-opted.

Ultimately the author fails to understand that our current situation is a crisis of moral hazard, and government cannot regulate morality. The only real solution is to structure a system that precludes moral hazard in the first place.

How to do that? the solution is fairly obvious. The biggest source of moral hazard is the corporate form of governance. We live in a world where, in 150 years, the corporate form has transformed itself from a heavily managed and strictly limited legal structure, to one which is almost completely unmanaged and with powers superior to that of natural human beings.

This is not a new problem. Wikipedia "Mortmain" and read it carefully. Take note of the solution devised in the middle ages (!).

I just could not agree more. This is exactly the meat of the issue.

Lorax Economics
Banks: Corporate Bundles of Dismal Joy - and Mislaid Rage


The corporate format allows humans no latitude for decision: Law and fiduciary duty demands the human earn the highest return on investment he can muster - externalizing risk in whatever way he can, regardless of ethics or morality.

[BuckarooBanzai]

Re: Zero Point of Systemic Collapse

Right. What you are saying is: a government captured by corporate interests, like what we have in the U.S., is an ineffectual regulatory force. Worse, it is complicit in advancing the corporate agenda.

But clearly, the only hope there is to regulate corporate interests is government. The key is to devise a government that is not controlled by corporate interests.

The only way to do that is to cripple the corporate form. We have been through this before; in the 18th century, the English people were horrified at the abuses perpetrated by the British East India Company, and other corporate entities that ran amok. Subsequently, the corporate legal form was stripped of power; corporations could only be formed for specific purposes, and with time limitations on their charters (i.e. 10 or 20 years). This viewpoint persisted in the colonies and became part of the legal heritage of the United States. But, inevitably, like zombies, they rose up again, and corporations began to shake off these restrictions in the mid 19th century, until today we find ourselves slaves, and the corporations, our masters.

[cindykimlisa]

Re: Zero Point of Systemic Collapse

Did not a similar thing happen across Eastern Europe during the U.S.S.R. days?

Christmas, Hannukka, ect.. was still held behind blanketed windows, home made antennae picked up european TV, local cultures and language was retained through an entire generation under communism.

This rise of christano-fascists in America or islamo-fascists and jewish-facsists in the middle east is still on the rise. Just look at Sarah Palin's and the Teabaggers.

The problm is that fascism is much more destructive than even communism, if you had to make the choice of Stalin or Hitler - you would correctly choose Stalin - as the allies did.

Why is that? Fascism is a human virus / mental iillness and propagates through similar memes as relgion does - fear and ignorance.

FYI Mula

You are too dualistic - everything for everyone is not black and white!

In fact I would chose neither - how bout that for another choice!

Cindy