A Wee Bit WEF: Taxes, Capitalism, and the Presentation of a New Star

 

by Not Sure

21 Jan 2021

 

            Alan Watt has mentioned that new political stars are presented at the annual meeting of the World Economic Forum in Davos, Switzerland, and cited Arnold Schwarzenegger’s trip to the ski resort town just before he became governor of California.  It is possible that we have been introduced to a new light in the constellation, in the form of Argentina’s new president, The Most Excellent Javier Milei, a former economics professor and television personality who has been described as a libertarian, a right-wing libertarian, a right-wing populist (keeping company with Bolsonaro, Orbán, Meloni, and Trump), a supporter of laissez-faire economics, and an anarcho-capitalist.  One thing that Milei is not, is a loose cannon.  He supports Ukraine, and closer ties with the United States and Israel.

            Attached is a link where you will see the English transcript of a speech that Milei gave at Davos last week, and embedded on the page is a video of the speech. 

 

Davos 2024: A special address by Javier Milei

https://www.weforum.org/agenda/2024/01/special-address-by-javier-milei-president-of-argentina/

 

          The speech has been described as “fiery.”  Milei chastised the audience for their bent toward socialism; the answer to every problem is more government intervention.  He championed capitalism, he said the Western world was in danger.  In a separate meeting, he took on inflation and poverty with the head of the IMF, Kristalina Georgieva.  Argentina’s inflation is currently 211.4%.  His solution?  A “tough austerity package.”  A tough poverty package.

***

            In the first section of Carroll Quigley’s Tragedy and Hope, he wrote about the long history of capitalism, and its various stages.  In a subsection entitled “Financial Capitalism, 1850-1931” he wrote:

“This third stage of capitalism is of such overwhelming significance in the history of the twentieth century, and its ramifications and influences have been so subterranean and even occult, that we may be excused if we devote considerate attention to its organization and methods.”

            He then proceeds to give that considerate attention which includes a history of the oligarchy intimately connected to money, e.g. the Rothschild dynasty, foundations and interlocking directorships, the creation of a type of a banker we now refer to as the “international banker,” money as debt, sound money, the gold standard, and so on.  Later in this section, Quigley writes:

“Another paradox of banking practice arose from the fact that bankers, who loved deflation, often acted in an inflationary fashion from their eagerness to lend money at interest.  Since they make money out of loans, they are eager to increase the amounts of bank credit on loan.  But this is inflationary.  The conflict between the deflationary ideas and inflationary practices of bankers had profound repercussions on business. The bankers made loans to business so that the volume of money increased faster than the increase in goods.  The result was inflation.  When this became clearly noticeable, the bankers would flee to notes or specie by curtailing credit and raising discount rates.  This was beneficial to bankers in the short run (since it allowed them to foreclose on collateral held for loans), but it could be disastrous to them in the long run (by forcing the value of the collateral below the amount of the loans it secured).  But such bankers’ deflation was destructive to business and industry in the short run as well as the long run.”

***

Free market and free trade are two very different concepts, though they are often intentionally conflated.  We are living in a free trade world that set its wheels in motion after World War II and has now been accomplished in the form of trading blocs.  To suggest that nations or individuals could return to the quaint idea of Gilded Age laissez-faire capitalism or a Randian idea of the unfettered individual who engages in capitalistic pursuits and the good, but unintended consequence is a social system most beneficial to the poor, is naïve in the face of the beast which is Free Trade organized by an oligarchy.

 

Tax our wealth, super-rich tell politicians at Davos

https://www.theguardian.com/business/2024/jan/17/wealth-tax-super-rich-davos-abigail-disney-brian-cox-valerie-rockefeller

 

            Meanwhile very wealthy Davos attendees, including Abigail Disney and Valerie Rockefeller, tell the politicians (those who weren’t too busy with high-priced hookers, and boozy schmoozing) “tax our wealth.”  As if…

© Not Sure