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Global Warming and the End of Capitalism

Discussions about the economic and financial ramifications of PEAK OIL

Re: Global Warming and the End of Capitalism

Unread postby yellowcanoe » Fri 03 Jan 2014, 11:25:35

$this->bbcode_second_pass_quote('Strummer', '
')
Actually, it's you who doesn't know what you are talking about. I did live in a communist country, I grew up in the 80s in the former Czechoslovakia, and I can assure you there's plenty of people who feel quite nostalgic. As an illustration, here's the election results of the Czech Communist party:


I'm not up on the circumstances under which communism ended in Czechoslovakia, but it certainly was a traumatic experience for many people living in Russia. The end of Communism which was triggered by a financial crisis left a lot of people destitute when they lost their pension or job. A rapid transition to a free market system created winners and losers where some people became quite wealthy while others were much worse off than they had been under Communism. It's no surprise to me that some would be nostalgic for the days of Communism.

Life hasn't necessarily improved for countries that separated from the Soviet Union either. My daughter-inlaw's family came to Canada from Moldavia. As part of the Soviet Union they had good markets for their wine and agriculture goods and were supplied with oil and natural gas from Russia at low cost. I believe Moldavia is now the poorest country in Europe and most people have a more difficult life than they did under Communism.
"new housing construction" is spelled h-a-b-i-t-a-t d-e-s-t-r-u-c-t-i-o-n.
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Re: Global Warming and the End of Capitalism

Unread postby dissident » Fri 03 Jan 2014, 12:40:04

The transition after 1991 of the ex-USSR was characterized by the looting of state assets by connected insiders (e.g. Khodorkovsky, Berezovsky, etc.) and the opening of borders to unregulated competition from foreign products and services which helped drive the economy into the ground. A full on transition to a 3rd world toilet economy. The drunk idiot Yeltsin let various shock therapy witchdoctors screw over Russia as he busily taxed the gross revenues of Russian companies (not their profits) forcing them to cheat to survive and allowing the mafia to flourish through blackmail. Yeltsin's regime also propped up the currency to an insane degree so that at one stage the government bonds had a 150% interest rate.

In 1998 the house of cards crumbled, the Russian currency experienced a massive devaluation which put up a natural import barrier that allowed Russian companies to actually make money selling their products. This allowed them to re-tool and make their products more competitive so that when the inflation adjusted exchange rate restored to less favourable levels foreign imports did not drive them out of business. No western country or Asian tiger practiced free trade during their development phase. Japan, South Korea, Taiwan were all protectionist when their industry was starting out. You only adopt free trade when your industry is mature and can compete. The shock therapy witchdoctors in Russia drank the koolaid of Harvard "academics" such as Jeffrey Sachs. It's funny, I recall Sachs giving an interview on the CBC where he was touting the "success" of the Bolivian shock therapy experiment when discussing what wonders it would do for Russia. Well, they succeeded in Bolivizing Russia, that's for sure. So excuse millions of Russians for being "nostalgic" for what they had before 1991. It's not nostalgia, it's recognition that they were screwed over by their government and the crooks who got rich from stealing public assets. Khodorkovsky was not some Carnegie. The "robber barons" of the gilded era USA grew industries and companies from scratch. The gangster oligarchs in Russia just stole existing infrastructure and mostly ran it into the ground. (Look up the takeover of the Apatit fertilizer company by Khodorokovsky during the 1990s, which filled a quite a few graves with contract killing victims).

The proper transition to capitalism would have been to at the very least not prop up the roubel. No free trade policy should have been pursued at all. The taxation system should have been rational and not just extortion. If the government could not make money on corporate profits, it should have been taxing imports. The taxes would have created conditions for domestic companies to actually be profitable. All the yapping about efficiency of Soviet enterprises is a load of bollox. These enterprises should have at least had a fair chance to re-tool and change their business models before being swamped with lethal levels of imports. The only reason that imports were affordable was because the roubel was being artificially maintained. If it was not propped up and properly floated there would have been a restoring feedback which would act to suppress excessive imports.
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Re: Global Warming and the End of Capitalism

Unread postby americandream » Fri 03 Jan 2014, 16:09:19

$this->bbcode_second_pass_quote('Lore', 'I')t's been mentioned here already that capitlism is an economic system, not a social system.


Incredible! And what do you think is the basis from which the economy is given effect if not social relations, in this instance, capitalism. Capitalism occupies all spaces from family to church. To look at one component of the bigger picture in isolation whilst bemoaning another component, the damage caused is missing out the complete picture.
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Re: Global Warming and the End of Capitalism

Unread postby Strummer » Fri 03 Jan 2014, 16:14:05

$this->bbcode_second_pass_quote('americandream', 'I')ncredible! And what do you think is the basis from which the economy is given effect if not social relations, in this instance, capitalism. Capitalism occupies all spaces from family to church. To look at one component of the bigger picture in isolation whilst bemoaning another component, the damage caused is missing out the complete picture.


This is not completely true. There are a few countries in Europe with successful capitalist economies mixed with a very strong socialist element, where capitalism definitely does not "occupy all spaces". Austria for example.
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Re: Global Warming and the End of Capitalism

Unread postby ralfy » Fri 03 Jan 2014, 18:04:10

$this->bbcode_second_pass_quote('americandream', '
')The definition is wrong. Capital is distinguished from other forms of wealth by the presence of labour value and the presence of the basis for accumulation, private capital. Any mode of value adding other than this involving the communalisation of value but in a nation form is a variant of revolutionary socialism, which achieves its natural form in a global context.

The presence of the market grants capital the additional component Marx's critique highlighted as it's ultimate death knell, the magnification of that labour value by increasingly greater forms of non-tangible assetising, the basis for the regular crises in capitalism as capital takes on an increasingly casino like quality. A quality that leads to the marginalisation of labour, its pauperisation and eventual conflict.

This half baked notion that an imperfect revolutionary socialism was a form of capital was precisely why the ranks of Marxists are in disarray. If they would take the time to read and contemplate the nature of capital, we would be spared the circles capitalists run around us.


The point that the "definition" is wrong is illogical because there are several definitions of the phrase.

From what I remember, Marx was not so naive as to imagine a "perfect" revolution right away or nothing at all. Rather, a revolution would involve workers taking over the means of production first.
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Re: Global Warming and the End of Capitalism

Unread postby americandream » Fri 03 Jan 2014, 18:16:10

$this->bbcode_second_pass_quote('Strummer', '')$this->bbcode_second_pass_quote('americandream', 'I')ncredible! And what do you think is the basis from which the economy is given effect if not social relations, in this instance, capitalism. Capitalism occupies all spaces from family to church. To look at one component of the bigger picture in isolation whilst bemoaning another component, the damage caused is missing out the complete picture.


This is not completely true. There are a few countries in Europe with successful capitalist economies mixed with a very strong socialist element, where capitalism definitely does not "occupy all spaces". Austria for example.


This is a subtle point. Bourgeoisie socialism is capitalism with a component of the socialised. Nazi's as well as social democracies are examples of bourgeoisie socialism. albeit very different in the quality of the capitalist initiatives.

Whilst bourgeoisie socialism appears to depart from say the libertarian model, all capitalism shares the core function, the manner in which social relations are arranged to facilitate the extraction of labour value. The fact that the existence of apparently socialised components somehow transforms the social relations in bourgeoise socialism into something less than capitalism is nonsense. During times of austerity, these socialised components are the first to face the axe when the model is exposed for what it is, a sham. True socialism is completely absent of capitalist social relations and is fully communal. Like the tribes of old, there is no sense of the private. The social convolutions that the former USSR is undergoing, a form of shock therapy, is precisely because of the imposition of the private in the communal in short space.
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Re: Global Warming and the End of Capitalism

Unread postby americandream » Fri 03 Jan 2014, 18:22:04

$this->bbcode_second_pass_quote('ralfy', 'T')he point that the "definition" is wrong is illogical because there are several definitions of the phrase.

From what I remember, Marx was not so naive as to imagine a "perfect" revolution right away or nothing at all. Rather, a revolution would involve workers taking over the means of production first.


One has to learn to distinguish between the revolution or taking control of the means of production and ownership of the means of production. Dealing with the latter, where the workers own the means of production (revolutionary socialism), the resulting social relations (not that different to property relations in tribal societies) renders the existence of capital nil. Where the bourgeoisie prevail albeit in a socialised net, this is bourgeoisie socialism.

As I have said, it pays to read Capital and understand this distinction. This understanding will spare us the stupidity of running a system that purports to be socialist today, is cutting welfare tomorrow and bailing out the bankers the day after.
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Re: Global Warming and the End of Capitalism

Unread postby ralfy » Fri 03 Jan 2014, 18:30:16

$this->bbcode_second_pass_quote('americandream', '
')
One has to learn to distinguish between the revolution or taking control of the means of production and ownership of the means of production. Dealing with the latter, where the workers own the means of production (revolutionary socialism), the resulting social relations (not that different to property relations in tribal societies) renders the existence of capital nil. Where the bourgeoisie prevail albeit in a socialised net, this is bourgeoisie socialism.

As I have said, it pays to read Capital and understand this distinction. This understanding will spare us the stupidity of running a system that purports to be socialist today, is cutting welfare tomorrow and bailing out the bankers the day after.


From what I know, a revolution leads to control of the means of production by workers. The transition to something resembling tribal societies does not take place right away.
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Re: Global Warming and the End of Capitalism

Unread postby americandream » Fri 03 Jan 2014, 18:59:28

$this->bbcode_second_pass_quote('ralfy', '')$this->bbcode_second_pass_quote('americandream', '
')
One has to learn to distinguish between the revolution or taking control of the means of production and ownership of the means of production. Dealing with the latter, where the workers own the means of production (revolutionary socialism), the resulting social relations (not that different to property relations in tribal societies) renders the existence of capital nil. Where the bourgeoisie prevail albeit in a socialised net, this is bourgeoisie socialism.

As I have said, it pays to read Capital and understand this distinction. This understanding will spare us the stupidity of running a system that purports to be socialist today, is cutting welfare tomorrow and bailing out the bankers the day after.


From what I know, a revolution leads to control of the means of production by workers. The transition to something resembling tribal societies does not take place right away.



Theres been a lot of confusion surrounding this area. One has to remember that Marx saw his analysis as an objective science. In other words, Capital, the volumes, merely analyse capital. Elsewhere in his works, he offers his opinion on what people should do with this knowledge:

1 He talks about the characteristics of capital. Its fundamental characteristics, the fact that it has to constantly ripple social relations in order to refresh its market, the relentless quest for accumulation, the gradual shift to a casino economy, the tendency to cycles of crises/boom, the globalistion process that captures even the obdurate parochial (think racists, would be luddites, petty nationalists, small businessmen...all fall prey to the globalist compulsion inherent in capitalism) and of course, the resourcing quandry. He touches very briefly on the planet (just one sentence and you have to look for it and think deeply about its meaning. But in there we warns about the risk to the planet.)

2 Elesewhere he talks about the dialectical method and what it offers mankind...specifically workers who, in not having a vested interest in the system. can use the dialectic to free themselves from wage slavery. He cautions however, about bourgeoisie socialism, reformists and other opportunists. Of all the leaders, I suspect Castro understood Capital the best (as well as Lenin and Stalin...hence they are brutalised and hounded in a bid to make what they led appear a shambles. Never mind. The objective forces of material dialecticism are still the final arbiter.

More topically given what the site deals with, we are in a crisis subject to forces that tick away quietly in the background. How we respond to this crisis will determine whether we enjoy the planet for a prolonged period or not.

edit: Mao was probably the worst crook to lead a mass uprising. Unsurprisingly, he is being feted as the face of modern China by capitalists. Bastard struck a deal with Nixon and fiasco of fiascos, China props up the capitalist with slave labour. Hardly surprising given the rubbish he put the Chinese through only to make them into the drones he had planned for them all along. And you still get numbskulls who follow this cretin's teachings
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Re: Global Warming and the End of Capitalism

Unread postby ralfy » Sat 04 Jan 2014, 00:53:39

$this->bbcode_second_pass_quote('americandream', '
')
Theres been a lot of confusion surrounding this area. One has to remember that Marx saw his analysis as an objective science. In other words, Capital, the volumes, merely analyse capital. Elsewhere in his works, he offers his opinion on what people should do with this knowledge:

1 He talks about the characteristics of capital. Its fundamental characteristics, the fact that it has to constantly ripple social relations in order to refresh its market, the relentless quest for accumulation, the gradual shift to a casino economy, the tendency to cycles of crises/boom, the globalistion process that captures even the obdurate parochial (think racists, would be luddites, petty nationalists, small businessmen...all fall prey to the globalist compulsion inherent in capitalism) and of course, the resourcing quandry. He touches very briefly on the planet (just one sentence and you have to look for it and think deeply about its meaning. But in there we warns about the risk to the planet.)

2 Elesewhere he talks about the dialectical method and what it offers mankind...specifically workers who, in not having a vested interest in the system. can use the dialectic to free themselves from wage slavery. He cautions however, about bourgeoisie socialism, reformists and other opportunists. Of all the leaders, I suspect Castro understood Capital the best (as well as Lenin and Stalin...hence they are brutalised and hounded in a bid to make what they led appear a shambles. Never mind. The objective forces of material dialecticism are still the final arbiter.

More topically given what the site deals with, we are in a crisis subject to forces that tick away quietly in the background. How we respond to this crisis will determine whether we enjoy the planet for a prolonged period or not.

edit: Mao was probably the worst crook to lead a mass uprising. Unsurprisingly, he is being feted as the face of modern China by capitalists. Bastard struck a deal with Nixon and fiasco of fiascos, China props up the capitalist with slave labour. Hardly surprising given the rubbish he put the Chinese through only to make them into the drones he had planned for them all along. And you still get numbskulls who follow this cretin's teachings


I am not sure, but I think you are supporting my point. That is, what was referred to earlier as Communist countries are actually state capitalist. At least, that's what we see in terms of GDP growth for China, Cuba, and others.

FWIW, I agree with all of the points you raised above.
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Re: Global Warming and the End of Capitalism

Unread postby americandream » Sat 04 Jan 2014, 01:19:00

$this->bbcode_second_pass_quote('ralfy', 'F')WIW, I agree with all of the points you raised above.


The Soviets under Stalin were strictly communalised with education dedicated to creating a communal culture. Kids for example weren't corporally punished but isolated from the class with the emphasis being on betrayal of the collective.

As these countries are railroaded into the free market, elements of the bourgeoise creep in obviously. That is happening with Cuba at the moment.
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Re: Global Warming and the End of Capitalism

Unread postby radon1 » Sat 04 Jan 2014, 08:52:29

By the way, Pol Pot was bitterly condemned by the USSR, and was portrayed as some sort of a western mercenary. His party wasn't even the communist party of the country, he championed a nationalistic cause, Khmer Rouge, which had nothing to do with marxism.
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Re: Global Warming and the End of Capitalism

Unread postby americandream » Sat 04 Jan 2014, 10:14:20

$this->bbcode_second_pass_quote('radon1', 'B')y the way, Pol Pot was bitterly condemned by the USSR, and was portrayed as some sort of a western mercenary. His party wasn't even the communist party of the country, he championed a nationalistic cause, Khmer Rouge, which had nothing to do with marxism.


The Khmer Rouge were close allies with China. The Chinese in turn were allied with the US in places such as Afghanistan during its socialist phase. Mao was a consumate liar and basically took the Soviets for a ride. He then cobbled together a following whilst he wheeled and dealed with the West. Pol Pot was one of them.
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Re: Global Warming and the End of Capitalism

Unread postby KaiserJeep » Sat 04 Jan 2014, 11:49:23

Twaddle. Pol Pot, Mao Zedong, and Stalin are all genocidal Marxist butchers.
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Re: Global Warming and the End of Capitalism

Unread postby radon1 » Sat 04 Jan 2014, 12:26:09

$this->bbcode_second_pass_quote('KaiserJeep', 'T')waddle. Pol Pot, Mao Zedong, and Stalin are all genocidal Marxist butchers.


Yeah. As well as Dracula, Saruman and Dr.Evil.
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Re: Global Warming and the End of Capitalism

Unread postby dissident » Sat 04 Jan 2014, 14:13:08

$this->bbcode_second_pass_quote('KaiserJeep', 'T')waddle. Pol Pot, Mao Zedong, and Stalin are all genocidal Marxist butchers.


That must be why communist Vietnam invaded Cambodia and overthrew Pol Pot's regime.

Here is a logical equivalent of your statement: Hitler, Churchill, Mussolini, Roosevelt, all a bunch of capitalist stars.
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Re: Global Warming and the End of Capitalism

Unread postby americandream » Sat 04 Jan 2014, 16:41:36

$this->bbcode_second_pass_quote('KaiserJeep', 'T')waddle. Pol Pot, Mao Zedong, and Stalin are all genocidal Marxist butchers.


I am tired of this thread diversion. Basically we have more important things to do than squabble like kids. If you dont believe, as most of us do here, that the infinite way of life we are living cannot be supported by this finite planet and that its time we discussed options, what the heck are you doing here? Most reasonable minded people who don't agree with PO.com's objects are out shopping, or doing other stuff that reflects their beliefs.
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Re: Global Warming and the End of Capitalism

Unread postby KaiserJeep » Sat 04 Jan 2014, 18:10:44

I do happen to believe in the oil peak. I don't blame Capitalism. I blame basic human nature, in fact the same behavior that began about 3000 BC when humans extended the tribe structure into villages and clans. That is the earliest form of Capitalism and the earliest Capitalists were herders, farmers, blacksmiths, bakers, brewers, etc.

In other words, they were tradesmen. The earliest venture capitalist was the local banker or money lender. The basic structure of Capitalism was present in 3000 BC, the only thing that changed past that point was the scale. The technology of warfare enabled the extension of the largest geographical unit from a village to a country, and enabled the scale up of tribal conflicts to (eventually) World War.

In other words, Marx got it wrong, he confused results with cause. The net results are pretty much the same except that if you accept the twaddle published by Marx, you believe in a safety net that does not actually exist. Which is a foolish self-deception because it requires humans to act against basic self-interest, to place the collective good above even the family structure. It will never happen. We will all either live or dies as Capitalists.

Which is as on-topic as it is possible to be, by one who does not share your foolish delusion.
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Re: Global Warming and the End of Capitalism

Unread postby americandream » Sat 04 Jan 2014, 18:17:48

$this->bbcode_second_pass_quote('KaiserJeep', 'I') do happen to believe in the oil peak. I don't blame Capitalism. I blame basic human nature,


I give up with you. I think its just a good old case of stupid, here. You don't even deal with the basic systemic issues I raise, You just keep rehashing historical data, as if that will somehow evaporate these systemic tendencies.

Like talking to my arsehole. Full of crap.

Cya.
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Re: Global Warming and the End of Capitalism

Unread postby radon1 » Sat 04 Jan 2014, 21:34:59

Kaiser, your point about capitalism's reliance on the basic human nature is a very valid one. Greed, fear, and hierarchy all have billions years of history and as such are tried and tested and very reliable. Communal forms will likely have to rely on human conscience, which is very recent and thus fragile and unreliable. But the alternative to those communal forms is sliding to archaisms such as feudalism or even barbarism (was discussed on this forum in detail a year or so ago).

$this->bbcode_second_pass_quote('KaiserJeep', 'I') do happen to believe in the oil peak. I don't blame Capitalism.
I blame basic human nature, in fact the same behavior that began about 3000 BC when humans extended the tribe structure into villages and clans. That is the earliest form of Capitalism and the earliest Capitalists were herders, farmers, blacksmiths, bakers, brewers, etc.
No one blames Capitalism - this is like blaming wind for blowing or rain for raining. Your earliest form was not capitalism as such, this was the inception of the "financial sector" - but these are technicalities. The fact that the first shoots of capitalism emerged at 3000BC or else does not mean that capitalism has no end.

As already said, a casual observation of history illustrates the point. Any time a closed capitalistic system hit its physical limits, it underwent a severe depression. These depressions were resolved mostly by violent acts - enclosure, interstate wars, colonial expansion, World wars, amalgamation of China (this one was peaceful), and the final act - Cold war resolution and embedding the USSR+ into the world's now sole US-led capitalist system.

To go from the observation to understanding requires a bit of study, but cutting the story short in simple terms - in order to have capitalism, you need to be able to charge interest. You may charge interest doing only two things - arbitraging between previously isolated markets until they come to equilibrium, or producing acts of deepening division of labour (or accumulation of labour surplus, as AD puts it). The latter has historically been mainly digging into the pool of poor peasantry, be that in the early industrial Britain, or in the industrialising Soviet Union, or in China and its surroundings as it is happening now.

The isolated markets suitable for arbitrage no longer exist on any substantial scale, and we will soon run out of the poor peasantry - if we no sooner run out of the fuel and food.

Then we will face a situation where there is nothing to charge the interest for. Money, in their financial aspect, will become irrelevant. Moreover, you as a financier will be no longer needed in a balanced static economy - in other words, imagine how useful you as a financier could be to a doomsteader. You may remain deeply capitalistic in your soul and mind, but capitalism without finances is an empty substance - it is anything but capitalism. The economy will run into the familiar depression, but this one will be never ending - there will be no one left to wage a war against for the expansion of the system. People have been sensing this situation for quite a while, calling it long emergency, grinding poverty and alike.

A way out of it could be boosting population growth to continue capitalism on the basis of reproduction of labour on an accelerating scale - but here we run into physical limitations of energy, food and environment, which are key subjects of this website. The physical energy processes and social processes are, in a sense, fractals.

So we are left with either sliding to archaisms, or preserving modernity on the basis of non-capitalistic approaches. In the latter case we would need to be able to develop and maintain complex value chains based on intellect/conscience/communal approaches rather than the old tried and tested fear and greed. This option looks, at least, more intellectually challenging and entertaining than feudalism.

$this->bbcode_second_pass_quote('', 'I')n other words, Marx got it wrong, he confused results with cause.
Heck with Marx. Imagine that you've decided to explore all these issues in-depth and produce volumes on what has happened and will happen. Make studies, talk to people who have got a clue, and so on. In 30 years time you'll produce volumes of writings only to find out that 80% of them will have already been written by Marx (and Adam Smith). Why waste 30 years of your life.

Given that your comments on the subject tend to be emotionally charged to the extent that you readily label any generally known bogeyman as a marxist, it looks like you might have some personal grievances here. So it is probably fairly meaningless to discuss Marx personally.
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