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Friday, May 21, 2010

YES, Even Dead Fish Goes With the Flow

By Mwarang'ethe

In his latest piece, Chris has written this: “how long do you think we will be able to flout our cash around even as our fellow countrymen starve and struggle to survive”? The implied meaning in this statement is that, the yawning gap in wealth between the few rich and majority dirty poor will be reduced or eliminated by the “new constitution.” As we have stated previously, a constitution is an economic document. As such, a constitution drafted without clear understanding of economics, i.e. natural laws of wealth creation and distribution is rubbish. We shall demonstrate with real examples.

Let us first note two crucial, but, little known facts. In the “classical age” politics and economics were studied under the rubric of political economy as the science of wealth. Science in this manner meant the systematical classification and arrangement of the natural laws of social prosperity. However, so as to produce one dimensional idiot who cannot see the whole picture, this subject was divided into political science and economics. The reason given by Neo Classical economists was that, economics had now become a science like physics and astronomy. However, the main aim was to fool mankind for the benefit of few.

About a hundred years ago, a group of socialists established a society called Fabian Society. Taking their name and strategy from Quintus Fabius, the Roman general who advocated a war of attrition against Hannibal of Carthage, they sought to impose socialism on mankind by stealth. To do so, they founded the London School of Economics and Political Science in 1895 (by the way, isn’t Kibaki and many other economists not graduates of this prestigious school?). For those of us who are awake in these dangerous times, we can see their dream of socialism is close to realization all over the world. Yes, we hear the right to food, decent housing and everything else to be provided by the government. The masses completely ignorant of long historical plans are deceived by this monkey language. In this collective ignorance, we hear them say hallelujah. We say woe unto you for we are on the road to serfdom worse than any other in the human history. While at it, remember this. It is socialism for the rich and free markets for the poor. If you doubt the definition of socialism, please tell us what you make of this.

This year Citigroup just announced that its profits for just the first three months of this year totalled an incredible $4.4 billion, Goldman Sachs' haul was $3.5 billion, JPMorgan Chase grabbed $3.3 billion, and Bank of America took $3.2 billion. How did these geniuses make this fortune? It is this. The Fed has deliberately held short-term interest rates to historic lows -- less than one half of a percent. Meanwhile, the Treasury Department is paying almost 4 percent interests on longer-term loans that banks make to the government. This might sound complicated. However, it's really a very simple transfer of public wealth to the giant banks owned by a few thousand people out of 6 billion people. The Fed loans, let's say, a billion dollars (public money) to a bank at a half-percent interest. The bank then turns right around and loans that billion dollars to the Treasury Department, collecting 4 percent interest. In short, the banks take citizen’s money and loan it back to them for a sweet 3.5 percent profit. Apart from loaning the citizens back their own money at interest, they are using the same funds to short including naked short selling shares and government bonds in Greece, Europe and globally. To prevent the collapse of land values, shares and government bonds and currencies (which is a futile exercise where we are now), governments must come up with money bailout (more public debts on the shoulders of the poor) and the game goes on and on. Sheer genius!

Question for YES people
Have we entrenched such a system in your wonderful constitution? And, if yes, can we be educated how such a piratical monetary arrangement will help in bridging the wealth gap you talk about when we know as a matter of fact, that, it is a means of transferring wealth from the poor to the super rich, i.e. the rentier class?
In a recent article on this blog we stated something like this. “The productive activities that can make a nation wealthy must meet two tests. (a) Such activities should lead to production of valuable tangible/intangible stuff. (b) Such activities should be surplus generating economic activities that can be made available for future re- investment. Ignoring the distribution aspect of this surplus for the moment, we can say that, since our economic activities do not meet test (b), in other words, we specialise in unproductive economic activities (special EPZ's and coffee growing - Malthusian activities) we are going NOWHERE. “

We added this. “Furthermore, even if there is some little surplus revenue for re- investment we also have a major problem of its distribution. Under the private land ownership (absolute title to land), land absorbs almost all of the surplus revenue in form of rent. In addition to this, we have piratical monetary system that also extracts a very large portion of the surplus revenue from our economy. This extraction of wealth by the idle class is at the expense of the class that create real wealth. This class is composed of the labour and the real economy/industrial/agriculture economy. Once the industrialist/farmer who creates commodities we need and exchange with each other is starved of revenue for future investments, it follows that, there are no jobs for the labour. And even if there are jobs, so as to meet the unjust demands of land owners and the financial capitalists, the wages must be low as we see in the EPZ’s. Low wages cannot create an environment for industrialists to invest.”

Question for YES people
So, if this is the condition of our economy and the “new constitution” has not fixed it, how do you meet the economic and social rights as well as devolution demands?
More so, there is something else we seem not to understand. It is the real meaning of “free trade” under which we are operating. This is a simple analysis. The imperial nations export capital to our nations for two reasons. These are the development of low cost sources of food (coffee, tea, fruits) and raw materials required by developed nation’s factories (copper, oil etc). By exporting capital to us, these nations can keep wages for their labour a bit low because basics/food is cheap. This ensures that, their profits for future investments are not squeezed too much. If free trade for the rich is meant to preserve their profits, what do we seek to preserve on our part? We answer debt, poverty and ignorance and conflicts over shrinking cake.

Question for YES people
To what extent does this wonderful constitution come even close to appreciating this reality, and therefore, come up with innovative means of escaping these arrangements? And, since it has not done so, can we be taught how prosperity of the poor will come about when wages must be kept low such that, we lack purchasing power and the profits for future investments?

We seek to write as little as possible, but, we are attempted to say more. In Article 41 (3) of the proposed constitution, we read this: “Every employer has the right – to form and join an employer’s organisation, and to participate in the activities and programmes of an employer organisation.” May God save Kenya. In the USA, we hear that, lobbyists make it impossible to make the necessary reforms. However, here we are, seeking to entrench such rights in our “new constitution.”
Let us see what Adam Smith said about employers and let the reader judge whether the drafters of this document and the Kenyans in general know anything they are talking about. He wrote this:

“People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices... The interest of dealers ... in any particular branch of trade or manufactures, is always in some respects different from, and even opposite to, that of the public... The proposal of any new law or regulation of commerce which comes from this order, ought always to be listened to with great precaution, and ought never to be adopted till after having been long and carefully examined, not only with the most scrupulous, but with the most suspicious attention. It comes from an order of men, whose interest is never exactly the same with that of the public, who have generally an interest to deceive and even to oppress the public, and who accordingly have, upon many occasions, both deceived and oppressed it.”

In the end, it seems as if one thinker who also a journalist was right. He argued that, people, including journalists were more interested in believing the pictures in their heads (housing for all, wealth distribution etc) rather than come to judgment by critical thinking. He added that, the function of journalists and news in this sense is only to signalize an even while the function of truth is to bring to light the hidden facts and thereby, set them in relation with each other so as to make a picture of reality upon which men can act. The news is that, we have a new constitution. The truth is that, it is the same old wine in new wine skins. In this case, news and truth are not synonymous. Even worse, he noted that, even if journalists could be effective in educating the public about important issues, the masses are never interested in learning and assimilating the results of accurate investigations. Thus, like a dead fish, they go with the flow.

In conclusion, no, we are not motivated by fear, but, the truth. However, we are aware that, today, there is little regard for the truth, little access to it and even little ability to recognise it. Truth is unwelcome entity. It is very disturbing. Truth is an inconvenience for governments and the interest groups who benefit from so called governments. Even worse, those, whose goal was once discovery of the truth about just wealth creation and just distribution thereof, are now paid very well to hide it. In other words, truth has fallen to the gods of mammon.

17 comments:

Anonymous said...

Mwarang'ethe,
Nice post. Just a reminder not to kill your patients with your UTOPIAN prescriptions. YES but NO for you.

Tupendane lakini.

M. Pesa said...

Mwarangethe

You are so right, this document is not perfect and never will. It's a middle ground compromise after careful analysis by patriotic Kenyans over a long and rigorous exercise. It's a modified document which is far better than the current rubbish we have, it's far better than Bomas, Wako, Kilifi et all. It's not cast in stone and amendments can be pursued later on or by future generations. Even those who oppose it say it's 75% good. For me the best YES case so far was from Njeri Kabeberi in K24's Capital Talk yesterday which I believe is available on their website. She rightly says the likes of Ruto, Arap Moi, Njue, Jirongo and many others in NO camp have a history of being anti reform since time immemorial. None of them has ever been clobbered when Kenyans defied dictatorship and demanded a new Katiba. Most of them are overnight billionaires scared stiff of losing their loot and that's why they are cowering behind the tribe and church. If only the NO side had some fairly decent folks from the political front leading it, maybe we could sit and argue..

Anonymous said...

Prof UTOPIA (Mwarang'ethe),
So what do you suggest we do in your infinite wisdom? Do we vote NO and start all over again hoping that we will HAVE A YES VOTE in November?

You argue and very brilliantly so, but what do we do NOW?

Odhiambo said...

As i have said here this katiba is going to make us poorer. but alas maybe people will wake up and smell the coffee. We need to be thrown into the fire or the lions mouth to understand where the real problem lies.

@ Mwarangethe. This is what is called a democratic process. It takes time for the masses to realize it.
The question should be what will happen 5 years from now when/if the masses will understand that they have gone from bad to worse. Thats the million dollar question.
At least there are some who tried to Warn about this( Mwarangethe) and hopefully history will be on your side. If not the whole world ceases to exists due to disaster the will not spare anyone or any country. Folks you can´t stop the inevitable.
Have a nice Friday.

Anonymous said...

I am voting YES for the katiba because my uncle can keep his land in Rongai without being called a "foreigner." As you know the katiba dismembered RV into counties and Rongai is now part of the NAKURU County where the so called "foreigners" make the majority. I am hunting for land in the Turi (Molo) area where I will create a rural retreate I can call home.

It appears that in the new katiba dispensation, there is a chance of a golden revival in RV by those who were the targets of PEV. So, peace, brothers & sisters, peace, and let us vote YES!

Anonymous said...

I heard some DOMO DOMO say how some money will be flowing from the Central Govt to their counties. Poor fellows, not a single time did they talk about the new responsibilities that will come along with that money. I hope they will not use it to marry second wives.

Anonymous said...

Wewe wacha porojo. the last time I checked Kibaki nor the late Gatiba were DOMO DOMO despite having 2 wives. Leta ingine.

Anonymous said...

Profesa Mwarang'ethe,

Those are worthwhile questions that will have to be pondered by the "YES" Fish that is flowing within a steady stream from the Proposed Constitution river.

Give them some credit due to the fact that the "YES" Fish are at least flowing in fresh waters. Call it "living waters" if you will.

While you still at it, where are similar objective questions for the "NO" Fish that is still floating with an ardent desire to remain in the murky waters of the old days doing business as usual, guarding the status quo and burying their heads in the sand beneath the sea of change for the next two decades?

Mwarang'ethe said...

While you still at it, where are similar objective questions for the "NO" Fish that is still floating with an ardent desire to remain in the murky waters of the old days doing business as usual, guarding the status quo and burying their heads in the sand beneath the sea of change for the next two decades?

xxxxx

Please let us stop focussing on useless people like Jirongo and Ruto. Let us focus on the REAL ISSUES we have consistently raised here. As you can see, none of the YES guys dare answer any of them. Personalisation of universal issues/problems is what blinds us to the issues that should have been at the heart of constitution making project.

Jirongo is not an American. Yet, we now know that, 32 states are bankrupt. We learn from Economic Policy Journal that, 32 states have run out funds to make unemployment benefit payments and that the federal governmant has been supplying these states with funds so that they can make their payments to the unemployed.

In other words, Americans are printing money like Zimbambwe. Why is this happening? Simple. America like many nations has become socialistic/monopoly capitalism and we know where that journey will end. Read the story here:

http://www.economicpolicyjournal.com/2010/05/32-states-have-borrowed-from-treasury.html

U may also read another interesting story here:

"$3 million in debt, Central Falls in receivership."

http://www.projo.com/news/content/CENTRAL_FALLS_FINANCES_05-20-10_GQII8I0_v46.8c3a73f.html

Now, if you analyse the latest figures in Kenya, u will see very disturbing signs.

In 2009/10 yr. the GOK expenditure will be about Ksh 772.4 billion, or, 30.3% of GDP. After the enactment of this constitution with all the mps (remember ati Affirmative Actions) and other offices, what % of the GDP will the govt. be?

In 2010, our deficit will be Ksh 168.2 b. This will require us to borrow externally Ksh 50.2, domestically Ksh 109.5b while getting Ksh 6b from "privatisation" (selling the goose) and some Ksh 2.5b by refinancing Telkom.

In the first 8 month of 2009/10, public debt increased by 79.9b. It now stands at Ks 1133.3 billion, or 45.4 of GDP in Feb. 2010.

Where will the wealth come to repay all these debts we are incurring? We answer. From the pockets of the poor. So, how will their lives improve when they are forced to relinguish much of their wealth so as to transfer wealth to the rentier class?

Simply, as long as we retain the current monetary system, there shall be no change. It is impossible. Anyone who understands this system, cannot dispute this assertion. Very unfortunate, extremely few people understand this vampire for it is clothed in mystery. And, if you doubt, we shall meet here in 2013-15.

Anonymous said...

Raila is heading to Cairo to apologize for Kenya signing the New Nile Treaty. The bugger has no balls to tell off the Egyptians!!!!

Anonymous said...

this is a case of one transferring adam smith's theories in trying to lie about the constitution's provisions. how do you talk about being anti socialism wen you clearly have issues with employers being in unions?? and dont yolu think the rights of employees to be in unions needs equal rights for employers??? dont give us theories, quote the draft in context. you such a socialist since i dont know wen free markets became a safe guard for the public. YES YEEEESSS!! YES.

Mwarang'ethe said...

Anonymous said...
this is a case of one transferring adam smith's theories in trying to lie about the constitution's provisions. how do you talk about being anti socialism wen you clearly have issues with employers being in unions??

xxxxxxxxxxxx

You seem extremely confused fellow. But, it is not surprising cos Fabian Society has done a very good job.

In the 20th Century growth of democracy was helped by two things:

(a) The extension of popular franchise (right to vote),

(b) growth of the union movement.

These two developments presented the corporations with potential threats to their power because, they were removing power from the minority. Why so?

Corporations have been a successful means since they were charted by England's Kings, to MINORITY RULE/TYRANNY because they are a stunningly efficient means of accumulating and concentrating wealth and property, which can then be translated into political power.

As long as the ownership of property determined eligibility to vote, minority rule remained intact, but as more people got the right to vote the threat of real democracy hung over minority rule like the Sword of Damocles. It had to neutralised.

Under a constitution drafted by people who are well versed with human history, corporations have no constitutional rights.

They should only have privileges granted to them by the people via their accountable governments. This is so because, there are only two parties to the constitution:

(a) The people, who are sovereign and have therefore, constitutional rights, and

(b) the government which must be accountable to the people and must serve the people.

Essentially, you are talking of unions of corporations like Shell, BP, Vodafone, Nike, Equity, Blackwater (private armies for commercial corporations) etc.

If you remember correctly, we defined socialism is for the rich and free markets for the poor. By entitling such corporations such constitutional rights, they stop being creations of the government which MUST SERVE THE PEOPLE and in effect, they become people entitled to the rights of the sovereign under the constitution.

This is a charter for wealthy shareholders to continue minority rule which democracy was supposed to remove. Unknown to thee, we have it from J.D. Rockefeller that, "competition is a sin."

More so, these ideas you are parroting here, are coming from a legally meaningless "obiter dictum" of Chief Justice Remick in the Santa Clara County v. Southern Pacific Railroad (1886). Your professor of law who only knows precedent, will never put legal persons in such historical issues.

So, bro/sis, keep on marching towards your serfdom.

Anonymous said...

Mwarang'ethe,
Ever head of LIVING IN YOUR HEAD? Or better still INTUITION DIMENSIONS for REALITY? You are on such a grand ego expansion mission you will drop dead pleasing yourself. Stop your UTOPIAN self prerscription.

Anonymous said...

Mwarangethe, go on with your good cause opening the eyes of the masses.
Ignore the dimwits and morons who can only fight you but lack intellectual capacity to debate issues thats why they stick to personalities.

I can see even your article has been posted in that Raila worshiping blog Jukwaa. Hopefully, more Kenyans will grasp the strong message that you have consistently been sending here.
Now i agree being a genius is a lonely affair cause clearly Mwarangethe is a true genius of our times.

Nimesema

Anonymous said...

Anno 6:41

Jukwaa is not and has never been a Raila worshiping blog.It is very independent and authoritative.

Anonymous said...

Nimesema,
No better idiot than an intellectual pretender. You always mouth that intelectual paradigm praising Mwarang'ethe without showing us what you have in between your ears. I would excuse a tout for ass licking but it is difficult for you to gain anything by being an e-AIRHEAD.

The said...

Indeed business/economics is war. How many of you realize this? A 48-page document is not going to change our economic situation unless it was written specifically to do that. Has the proposed constitution been fashioned in such a manner?

Why would anyone who read this post and commented on it think that anything other than economic independence matters above all?

How can we claim to have political independence with economic independence? How can we aspire to prosperity without economic independence?

Or maybe that's not what we really want?

If that's the case what do we really want?

Somebody please enlighten me.

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