Tag: Ayn Rand

China Is Asked for Investment in Euro Rescue

Euro
Image by Images_of_Money via Flickr

A new chapter is being written in the History of Money, Bank and Credit as news of how European leaders are asking for China to rescue them from the chaos they created. I wish this guys reconsidered before continue acting some of the most important principles of Deficit Financing, Freedom, Inflation, Money, Property Rights, Savings, Welfare State, Consumption, Credit; Gold Standard, Market Value, Objective Theory of Values, Production, Purchasing Power, Sanction of the Victim, Selfishness and the Trader Principle just to mention a few before going on making more business that en debts their country’s economy while make their citizens poorer.

And as Ayn Rand cleverly mentioned in regard to Deficit Financing,

The government has no source of revenue, except the taxes paid by the producers. To free itself—for a while—from the limits set by reality, the government initiates a credit con game on a scale which the private manipulator could not dream of. It borrows money from you today, which is to be repaid with money it will borrow from you tomorrow, which is to be repaid with money it will borrow from you day after tomorrow, and so on. This is known as “deficit financing.” It is made possible by the fact that the government cuts the connection between goods and money. It issues paper money, which is used as a claim check on actually existing goods—but that money is not backed by any goods, it is not backed by gold, it is backed by nothing. It is a promissory note issued to you in exchange for your goods, to be paid by you (in the form of taxes) out of your future production.

“Egalitarianism and Inflation,”
Philosophy: Who Needs It, 133

Read more of this news:

PARIS — A day after European leaders unveiled their latest plan to save the euro, top officials opened talks with China in an effort to lure tens of billions of dollars in additional cash, giving China perhaps its biggest opportunity yet to exercise financial clout in the Western world.

China is expected to demand significant concessions, including financial guarantees and limits on what Beijing sees as discriminatory trade policies, in exchange for any investment in Europe’s emergency stability fund. The head of the rescue fund, Klaus Regling, got a cautious reply from Chinese officials Friday during a visit to Beijing, where he said he did not expect to reach an investment deal with China anytime soon.

A senior Chinese official, Vice Finance Minister Zhu Guangyao, said China — like the rest of the world — was still waiting for the Europeans to deliver crucial details on how the rescue fund, the European Financial Stability Facility, would operate and be profitable before deciding on whether to participate. via: China Is Asked for Investment in Euro Rescue by Liz Alderman and David Barboza.

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Libyan Strongman Muammar Gaddafi Falls

Free Libya - Saturday Is Always A Day Of Prote...
Image by infomatique via Flickr

“Dictatorship nations are outlaws. Any free nation had the right to invade Nazi Germany and, today, has the right to invade Soviet Russia, Cuba or any other slave pen. Whether a free nation chooses to do so or not is a matter of its own self-interest, not of respect for the non-existent “rights” of gang rulers. It is not a free nation’s duty to liberate other nations at the price of self-sacrifice, but a free nation has the right to do it, when and if it so chooses.

This right, however, is conditional. Just as the suppression of crimes does not give a policeman the right to engage in criminal activities, so the invasion and destruction of a dictratorship does not give the invader the right to establish another variant of a slave society in the conquered country.” Ayn Rand. The Virtue of Selfishness, 104

Gaddafi came into power as an assassin and terrorist. He started out murdering, continued murdering and had been going out murdering until today.  His death is no panacea but it is surely a victory for the Libyan people and their 2011 Revolution.

Starting in February 15th, 2011 a series of peaceful protests asked for change in the country and they were met with military force by the Gaddafi regime.  Thousands were hurt and killed. Gaddafi proclaimed his despotic discourse that same night and said that the only way he was going to leave Libya was going to be in a cuffing.  Indeed, that’s how he will leave the history of the country.

The fight for Libyans has not finished; loyalists around the Algerian and Nigerian borders are still present and the opposition continues.

I celebrate the capture of this dictator and our attention needs to be focused now in the continues shipping of supplies of medicine, fuel and food were for Libya’s urban centres.  As the philosopher Ayn Rand mentioned in the quote with which I begun this post; it is necessary as well, that we keep a close attention to the outcome of this Libyan revolution in order to avoid that another variant of a slave society in the conquered country with national or international control.

What is Capitalism?

Before defining what is Capitalism I have decided to provide you with five videos that explain the philosophical foundations of Capitalism as a social system. By listening to these videos, you’ll get a wonderfully elaborated explanation of What Capitalism is and of what it consists of.

Video – What Is Capitalism (1/5)

“Capitalism is the only social system based on the recognition of individual rights and, therefore, the only system that bans force from social relationships.”1

Published in 1966 this abstract from Ayn Rand‘s work on Capitalism explains in a clear and unequivocal way the true concept and definition of a system based on reason and in the recognition of the rights of free and responsible men.

Capitalism in the previous quote means a full, pure, uncontrolled, unregulated social system known as “Capitalism Laissez-faire“. It is a system that works as a set of interacting or interdependent moral, political and economical principles that are incorporated into legal systems, institutions and governments. This moral, economical and political principles are contingent to the identification that the members of the system do in order to understand the nature of man and are applied to the rational understanding of man’s psycho-epistemology (man’s mode of functioning in acquiring knowledge).

In human history there hasn’t yet existed a capitalist laissez-faire social system that fulfills the previous requirements; and only glimpses of its potentiality have been achieved through history. However, since the 15th Century “economies organizing themselves on capitalist lines have experienced greater economic dynamism: increasing productivity, increasing employment, and generating more rapid advances in economic wealth, living standards, and improved health of the population.”2  It is because of many of the principles of Capitalism Laissez-faire that Globalization and all the different forms of Capitalism have managed to benefit humanity and achieved our current conditions. Unfortunately, it has been because of the philosophical contradictions and irrational actions of man that also many adverse results have come into being from these mixed forms of capitalism and economic crisis, inequalities in the distribution of wealth and environmental degradation are still existing.

The Board of the Center for the Study of Capitalism at Wake Forest University explains what are some of these forms of Capitalism that currently exist and also explain which are some of its capitalist characteristics,

In the 21st century capitalism exists in several forms. These include 1) free market or market-led capitalism such as we are accustomed to in the U.S.; 2) corporatist or state-led capitalism where the government exerts significant guidance, leadership, and influence over the deployment of private capital (e.g. France, Japan in the 1980s); and 3) managed capitalism, in which worker groups and broad social welfare issues exert significant influence on private corporate behavior (e.g. Sweden, Germany).3 Whereas some evidence suggests that market-led capitalist economies experience greater economic dynamism and higher rates of per capita income growth than economies with other forms of capitalism,4 other evidence points to less volatility and fewer inequities in other forms of capitalism than in market-led economies.5

This blog was created to study how and when Capitalism and its philosophical principles played a role in Global History.  It is my goal to demonstrate with a narration of past events how the roots of Wealth enabled for the interconnection of the World and how we could learn from the past to build more rational and objective societies.

Sources:

1 Rand, Ayn. Capitalism: The Unknown Ideal. Signet; Fitst Signet Printing, 1967 edition (July 15, 1986)

2 About Capitalism. BB&T Center for The Study of Capitalism. http://capitalism.wfu.edu/about/capitalism/

3 D. Coates, 2000, Models of Capitalism, Blackwell: Malden MA.

4 R. L. Heilbroner & W. Milberg, 2006, The Making of Economic Society, Prentice-Hall: Upper Saddle River NJ; E. Phelps, 1999, “Lessons from the Corporatist Crisis in Some Asian Nations”, Journal of Policy Modeling, 21 (3), 331-339. E. Phelps, 2007, “The Economic Performance of Nations: Prosperity Depends on Dynamism, Dynamism on Institutions”, in E. Sheshinski, et al, ed., Entrepreneurship, Innovation, and the Growth Mechanism of Free Enterprise Economies, 342-356, Princeton University Press: Princeton NJ.

5 M. Walker & R. Thurow, 2009, “U.S., Europe are an Oceans Apart on Human Toll of Joblessness”, Wall Street Journal, May 7, A1.

Making a Moral Revolution. From 1773 to 2011.

The protests of the groups named 99% seem to continue igniting fury all over the world since they occupied Wall Street at Liberty Square in Manhattan’s financial district. By now, they claim at OccupywallSt.org that the protests are being held in more than 1500 cities around the world (virtual map). In all those cities the protests have taken different shapes and discourses. They seem to cry for different things. Their leaders emphasize their own agendas and it has been hard for me to identify a common single demand.

Curiously, most of these protesters most surely do not recall that on a day like today more than 200 years ago a public meeting similar to theirs was first organized.  It was in October 16, 1773 that the First public meeting of protest against the Tea Act took place in Philadelphia.  These protesters demanded from their rulers (The British Parliament) a respect of their rights to property and individual rights.  They asked for the Parliament to respect their right to elect their own Representatives and to be taxed by those representatives only.

Three years later, after their demands were not listened by the British government the United States Declaration of Independence was signed by the representatives of thirteen American colonies then at war with Great Britain. It was the first Declaration ever written in history that considered as its core that all men had unalienable Rights and that among these rights are Life, Liberty and the pursuit of Happiness.

Since then, these rights were slowly forgotten and captured by government. Slowly, the sons and daughters of these revolutionary protesters forgot the reasons that created such a wonderful Declaration.  Now, the protests of the Occupy movements face a similar contradiction.  As The Ayn Rand Center for Individual Rights argued in their article What the Tea Party Movement Must Stand For, it is necessary for them to organize against one single claim: They should demand for a Moral Revolution in which their government returns to them their rights to Life, Liberty and the pursuit of Happiness.

It is until now Ayn Rand the only philosopher who has provided a moral defense for these revolutionaries.  As she wrote in Capitalism: the Unknown Ideal,

“The world crisis of today is a moral crisis–and nothing less than a moral revolution can resolve it: a moral revolution to sanction and complete the political achievement of the American Revolution. . . . [YOU] must fight for capitalism, not as a “practical’ issue, not as an economic issue, but, with the most righteous pride, as a moral issue. That is what capitalism deserves, and nothing less will save it.”