All I knew of UBS was that it was a credit bubble bank (like so many others) so I was interested to find out that its senior economic adviser, George Magnus (Magnus? has he escaped from a role playing game, does he have dark cloak and so on?) is a Marxist.
At least in his letter in the (dear, sweet) “Financial Times” newspaper on Wednesday 31st of August he describes himself as someone who is part of the group of people who “think Marx matters” (I think Karl “matters” to - I think he was a nutcase whose crackbrained ideas inspired the murder of at least one hundred and fifty million human beings, but the Great Magnus means “matters” in another sense).
It appears (according to the Codex of Magnus) that the “analysis” of “capitalism” by Karl was wonderful and totally correct - apart from on one thing………
Yes you guessed it, Karl Marx did not see that “captialism” could be saved by the state producing even more credit money (and the handing over of this credit money to insitutions like UBS, of course).
Karl Marx understood that “capitalism” would not naturally recover from a crises “such as a credit bust” (by the way - what causes these credit money bubble “booms” in the first place….. SHUT UP - you are not supposed to ask questions, just undergo a “mental reboot” and obey the Great Magnus).
What about all the failed “monetary easing” (i.e. creating more funny money) of the last few years?
And the failed “fiscal easing” (i.e. the government spending orgy).
Did you not hear me? SHUT UP.
And what about all the credit money bubble busts which have been got out of without this government “easing” - such as 1921, where the Federal Reserve did not go on a money creating bender, and the government actually CUT its spending by some 25%?
SHUT UP, SHUT UP, SHUT UP.
Just OBEY - do not ask questions. The Great Magnus (and the great Karl Marx and the great J.M. Keynes, oh yes the little Cambridge creature gets a mention) has spoken, who are you to question elite authority? Have you not had your “mental reboot” yet, like a good little robot.
Governments should get over their “fetish” for balanced budgets (even though they have no such “fetish” and have been engaged in vast deficit spending for years) and all will be well.
Of course, if “The Great Magnus” was an isolated case one could just have a laugh and forget about it (unless one was a shareholder in UBS - in which case one would be busy putting pressure on the management to fire this idiot, unless one valued a short term subsidy over the long term survival of the very economy that UBS is a part of), but it is not an isolated case.
On the facing page we have Martin Wolfe telling the world that governments must spend even more money - including the United States government (yes he has no shame what-so-ever).
And in Monday’s “FT” there was Clive Crook (Crook by name - and certainly crook by nature) demanding yet more creation of credit money and on a “vast scale”.
And on Friday there was Sam Britton (who I first met in the early 1990s when he was on his demented crusade for Britian to join the Euro) demanding the same thing - even that “money should be thrown from helecopters” (citeing some words of Milton Friedman - without mentioning that M.F. later repudiated the whole idea of monetary expansion).
The best that can be said for Samuel is that, if he really means that money should be printed and “thrown from helecopters” then he is NOT corrupt - as at least it would not be credit money pushed into the banks and other institutions that buy large numbers of copies of the Financial Times newspaper for their staff (and pay their paywall subs).
But Martin Wolfman and Clive Criminal?
No, they are right down there with The Great Magnus.
“But Paul surely Samuel B. had an argument - he was not just saying demented things at random”.
Of course he had an “argument” - the same one as The Great Magnus, Karl Marx was right about everything accept…..
The only difference is that I think Sam B. is so senile that he actually believes this rubbish. Whereas Clive Crook, Martin Wolfe and (of course) George Magus are so nauseatingly corrupt that they will say anything if it will lead to more subsidies for the banks and other financial industry institutions. Anything to create a short term “boom” (especially on the stock market), who cares about how it messes up the capital structure with malinvesments and causes economic collapse.
For, yes, (before Ian B. jumps in) I do know that these people are not really sincere Marxists (indeed they are not sincere anything) - they are, of course, just scumbags.
However, there is a “joke” here.
In the orgy of government spending and funny money production (sorry “fiscal and monetary easing”) that the above scumbags support (for their own corrupt reasons), they open the door for REAL Marxists.
For the economic chaos inevitably produced by a yet bigger credit money and government spending orgy (producing a yet bigger bust) is just what they want - indeed crave.
Such boom-bust credit money bubbles are not produced for the benefit of Marxists (they are produced for the benefit of corrupt bankers and hangers on in associated corporations - including the company that owns the Financial Times and the Economist magazine), but that will not stop real Marxists taking advantage of the chaos.
And real Marxists do exist - for example in recent years they have quietly (but effectively) largely taken over the American union movement (for the first time since the 1930s). And regulations are being passed (by the NLRB - against the expressed will of Congress) that give them more power all the time.
The Marxists also dominate education (both at school, via teacher training, and at university level) and much of the media.
What would happen to Sam B., Clive Crook, the Wolfman, and (even) The Great Magnus, if the real Marxists took over - which they actually might (thanks to the absurd policies these members of the “intellectual elite” have been pushing for so many years).
They would all be horribly murdered of course - perhaps even by (real) Marxists who work rather close to them right now. Or perhaps by “Community Activist” thugs (after all there are “community organizers” all over the West).
It is impossible to warn these people - they are blinded by greed, establishment “group think” and, in Sam B.s case, most likely by senility as well.
But one can warn people against taking establishment (create more money and spend it) advice.
Although, alas, that is exactly what the governments of the West have been doing - for years, indeed decades.
It may well already be too late.