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Ponzi World (Over 3 Billion NOT Served): The Corporatized Matrix Liquidated the Real Economy

Ponzi World (Over 3 Billion NOT Served): The Corporatized Matrix Liquidated the Real Economy.

We are the human batteries powering the Corporatized Matrix – born into indentured servitude. The Corporate endless growth paradigm cannibalized the real economy, leaving a hollow illusion populated by denatured human drones…

Denatured from Birth
Every aspect of our lives has been denatured and controlled by one soulless corporation or another.
From the Frankenfood-like substance at the grocery store of unknown Monsanto origin, to the Newspeak-like information that we are fed via the corporate media. They control the media, they control the message.
The machine doesn’t like people to ask too many questions, so the human batteries have been steadily dumbed down one episode of South Park/American Idolatry at a time.
When the internet became commercialized in 1995 a la the “World Wide Web”, it was immediately flooded and overwhelmed by mangled, obfuscated, contorted disinformation. A toxic waste sewer of for-profit-only garbage. Hyperlinked bullshit sent attention deficit disorder through the roof where it has grown acute amid texting and mobile handset addiction.
The Sociopathic Corporation (aka. Agency Theory)
As I’ve explained before, agency management assures that corporations remain fixated on their goal of mindless growth at all costs. Any given shareholder may be environmentally conscious or worker friendly, but via the corporate model, the incentives of the agency management are to maximize share price at all costs. Some companies say they support this “good cause” or that one as part of their overall Marketing slogan, but as soon as they miss Wall Street expectations, that other non-profit-related  bullshit goes straight out the window. As I also explained, obscene profits are not adequate, corporations must continue to grow profits at all times or the stock market will vote their shares down in real time, and as the stock price plummets those management options will be rendered worthless. The growth-at-all-costs model does not go in reverse.
Sociopathic Buffoons Running Amok
These country club CEOs and their management lackeys are hardcore sociopaths. They’ve impoverished millions without even the slightest twinge of guilt. They turned the economy into a zero sum game to their own overwhelming personal benefit and in the process turned their companies into call options. Most of them were hatched in Ivy League schools which generated the text book alchemy that gives the all-important specious stamp of approval to this entire fucking fiasco. Harvard et. al. must never be questioned, no matter how self-destructive are their ideas.

Front-Running Democracy
Like HFTs in the stock market, the corporate special interests front-run the public at the polling booth by buying both/all parties ahead of time. The game show hosts in politics with % approval ratings hovering near single digits, bear the brunt of the public frustration while the puppet masters remain out of view. The Lost Boys of the Idiocracy and various other complicit stooges rail away at “evil government” in faux outrage, while the special interest groups who direct all government actions remain fully intact and unquestioned.

Feasting on the Carcass of the Real Economy
In the context of the Fed’s generated Potemkin Village, the real economy no longer matters. The Fed expands the money supply as a proxy for real economic growth and the stock market is now programmed to only go up when the real economy goes down. So the corporate incentive to create organic growth, in aggregate is now negative. Investment in real plant and equipment has been supplanted by speculation in secondary market paper assets. A zero sum game. The one time industrial arbitrage between East and West cannibalized demand while massively inflating supply. The output gap going into this next downturn will be unprecedented in scale.
Those of us corporatized slaves, accept the Fed’s debased dollars without any form of rebellion, because as a society we’ve been bred for docility. The corporate hierarchy is the ultimate passive aggressive breeding ground. Still, some of us know that the special interest groups closest to the printing press benefit at our expense. And those who understand deflation know that this is all just a smoke screen to cover up the ongoing collapse of the real economy. Once that smoke screen lifts, the fully hollowed out devastation will be revealed for all to see.
Dopamine Addicted Zombies
The worst part about this entire fiasco is that we are surrounded by human zombies who have been denatured to the point where they can no longer be happy outside of this corporatized Disneyland. They seek comfort in the illusion being projected onto the paper walls of the Fed’s Potemkin Village. They don’t question it in the slightest.
Granted, they can’t really help it. The human batteries have been turned into dopamine addicts by the Corporatized Matrix. They can’t envision life without McMansions, SUVs, Black Thursday shopping sprees, supercarriers and other trinkets. They are bought in and sold out to the status quo no matter how fake or unsustainable it may be. Therefore, like any other type of junky they will have a hard time surviving when taken off of their consumption-oriented stimulants.
So when it all implodes spectacularly and reality is revealed in all of its natural glory, then it’s highly likely that these zombies will behave in desperate ways that are highly “unpredictable”.
You’ve been warned.

Gold, The Fed’s “Stockholm Syndrome”, & Keeping An Open Mind | Zero Hedge

Gold, The Fed’s “Stockholm Syndrome”, & Keeping An Open Mind | Zero Hedge.

Once the family/gang has carved out their turf, they then turn to controlling and exploiting the resoruces (either natural or human) inside of it. How different is today’s President-Congress-Governor-Mayor-Worker relationship to the mafia’s boss-soldiers-associates model?

 

Is it simply ironic that the term “bankster” has become so ingrained? As Santiago Capital’s Brent Johnson explains in this brief presentation… if you can keep your mind open, today’s business leaders and politicians are no different as they run protection, extortion, control the flow of ‘drugs’, and manage ‘crime’.

 

 

Is it possible, he asks, that we are all collectivley empathizing and sympathizing (and in many cases defending) the very system and the very people that are holding us captive?

 

Davos: peeling back the veneer

Davos: peeling back the veneer.

(c) World Economic ForumScrolling through the website of the World Economic Forum – convening this week in Davos, Switzerland – one might confuse the premier platform for global capital with a savvy and hip think tank, or perhaps a philanthropic aid and development charity. The content is carefully curated to sedate and comfort. The right buzzwords are there: “impact investing”, “embracing democracy”, “our oceans”, and “sustainability.” In the Issues section, one finds Environmental Sustainability, Health for All, and Social Development. An article by Nobel laureate economist Joseph Stiglitz (a critic of globalization) is featured front and center, as if to proclaim, ‘challenging the stodgy status quo through edgy, unorthodox economic thinking – that’s what we do here.’

There’s nothing to indicate that this is, in fact, a platform for multinational corporations, among them human rights abusers, political racketeers, property thieves and international environmental criminals. But then, that wouldn’t exactly make for a very inviting homepage.

Here, for example, is the WEF mission statement:

The World Economic Forum encourages businesses, governments and civil society to commit together to improving the state of the world. Our Strategic and Industry Partners are instrumental in helping stakeholders meet key challenges such as building sustained economic growth, mitigating global risks, promoting health for all, improving social welfare and fostering environmental sustainability.

Rather than getting bogged down in a detailed evaluation of WEF’s high-minded claims and eco-populist rhetoric, it may be more efficient to consider the behavior of those corporations and banks that comprise the Forum’s list of Industry Partners – described as “select Member companies of the World Economic Forum that are actively involved in the Forum’s mission.”

Among them are Shell, Nike, Syngenta, Nestlé, and SNC Lavalin – companies you’ll also find on Global Exchange’s list of the Top 10 Corporate Criminals of 2013, based on offenses like unlivable working conditions, corporate seizures of indigenous lands, contaminating the environment, and similar transgressions. At least seven other companies “actively involved in the Forum’s mission” are recentalumni of the Corporate Criminal list.

Or consider Corporate Accountability International’s Corporate Hall of Shame, comprised of “corporations that corrupt the political process and abuse human rights, the environment and our public health.” Seven of the ten ­– Walmart, ExxonMobil, Bank of America, Coca-Cola, DuPont, Monsanto, and Nestlé (which has the dubious distinction of making both lists) are WEF Industry Partners.

How about climate change? This is now an issue that regularly features ominously in the WEF’s “Global Risks” annual report. Curious, then, that in addition to Shell and ExxonMobil, the Forum’s Industry Partners include most of the largest oil and gas companies in the world, from BP and Chevron to Gazprom and Saudi Aramco.“Carbon Majors” a peer-reviewed study in the scientific journal Climatic Change, lists the 90 entities most responsible for extracting the fossil fuels burned over the past 150 years. The top six are WEF Industry Partners.

Despite the carefully crafted words of concern for the poor and hungry, the WEF’s many food corporations – from Unilever and Pepsico to Cargill and General Mills – have actually parleyed the misery of the food crisis into further control over the food system, as well as spectacular profits. During the 2008 food crisis, the organization GRAIN released a report revealing that “nearly every corporate player in the global food chain is making a killing from the food crisis …. Such record profits … are a reflection of the extreme power that these middlemen have accrued through the globalisation of the food system. Intimately involved with the shaping of the trade rules that govern today’s food system and tightly in control of markets and the ever more complex financial systems through which global trade operates, these companies are in perfect position to turn food scarcity into immense profits.” (1)

Global banks also played a pivotal role in precipitating – and making a killing off – this food crisis. According to an investigative report by Frederick Kaufman, Goldman Sachs instigated a “global speculative frenzy” on food which “sparked riots in more than thirty countries and drove the number of the world’s “food insecure” to more than a billion …. The ranks of the hungry had increased by 250 million in a single year, the most abysmal increase in all of human history.” (2) Needless to say, scroll down to “G” in the Industry Partners list, and Goldman Sachs is there.

The fact is, digging into any of the crises we face will reveal the complicity of the very corporations that the World Economic Forum represents. A study conducted for the UN, for example, estimated the combined environmental externalities of the world’s 3,000 biggest companies to be $2.2 trillion in 2008, “a figure bigger than the national economies of all but seven countries in the world that year.” (3)

Impression of the World Economic ForumThese are just a few of innumerable possible examples. The corporations represented by the World Economic Forum are the agents principally responsible for destroying the planet, ravaging livelihoods, and literally starving people, all while aggrandizing unprecedented profits into the hands of an ever-tinier super elite. Seen in this light, all the burnished social and environmental concern-speak of the WEF is so much vacuous corporate swagger, the crudest sort of greenwash. Even though these companies actually spend huge amounts of capital and energy fighting environmental regulation and the citizen’s groups who are suffering their abuses, they simultaneously pursue a strategic embrace of environmental discourse and narratives; they accept the existence of the problems while promoting privatized, technocratic strategies for addressing them. These strategies pivot between those that assign responsibility for causing and fixing the problems to individual consumers, and those that position the corporations themselves as crucial players in the common cause of “improving”/”cleaning” the environment – the same one, incidentally, that they destroyed.

The absurdity of this schizophrenia reaches extreme limits: the WEF is solemnly concerned about global warming because – get ready for it – it represents one of the biggest threats ever to global trade and corporate capitalism! The primary perpetrator of global warming is now portraying itself as a victim. In WEF-land, global warming is like a mysterious, autonomous, alien force invading from afar, without cause or explanation. It “affects us all”, so we must all roll up our sleeves and unite – fossil fuel corporations included – in the battle against a common external foe.

There is, however, one part of the WEF’s mission that is being genuinely fulfilled: “building sustained economic growth”, code for increasing the power and wealth of its corporate partners. That this is the first of the “challenges” described in the WEF mission statement is no accident. Economic growth might seem an odd mismatch to the other issues, like social welfare and environmental sustainability, but the WEF has clearly embraced the notion that endless growth is not only compatible with environmental sustainability, it is actually necessary for it. That this myth has been thoroughly debunked seems to have conveniently escaped the WEF’s notice. (4)

This farce would be laughable but for the immense power and enormous control commanded by the corporations and banks the World Economic Forum represents. When the WEF promises to address agriculture, food security, environmental sustainability, and the like, we should be very worried for exactly those things. Peel away the eco-charity veneer and the WEF’s actual mission stands naked: advance the power, growth, and wealth of the corporate rulers of the world.

In no way should The World Economic Forum be allowed to insert itself as a legitimate voice on the resolution of the very issues that its agenda – the perpetual growth of its partners – precipitates. On the contrary, it should be fiercely resisted – precisely what the alternative World Social Forum, Occupy WEF, and other anti-globalization groups were created to do. (5)

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Alex Jensen is Project Coordinator at the International Society for Ecology and Culture (ISEC). Alex has worked in the US and India, where he coordinated ISEC’s Ladakh Project from 2004 to 2009. He has collaborated on the content of ISEC’s Roots of Change curriculum and the Economics of Happiness discussion guide. He holds an MA in Globalization and International Development from University of East Anglia. He has worked with cultural affirmation and agro-biodiversity projects in campesino communities in a number of countries and is active in environmental health/anti-toxics work.

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(1) GRAIN (2008) ‘Making a Killing from Hunger’, 28 April,http://www.grain.org/article/entries/178-making-a-killing-from-hunger, and

http://www.grain.org/article/entries/716-corporations-are-still-making-a-killing-from-hunger

(2) Kaufman, F. (2010) ‘The Food Bubble: How Wall Street Starved Millions and Got Away With It’, Harper’s Magazine, July,http://frederickkaufman.typepad.com/files/the-food-bubble-pdf.pdf

(3) Jowit, J. (2010) “World”s top firms cause $2.2tn of environmental damage, report estimates”, The Guardian, 18 February, 2010.

(4) see, e.g.: Jorgenson, A. and Clark, B. (2012) ‘Are the Economy and the Environment Decoupling?: A Comparative International Study, 1960–2005,’ American Journal of Sociology 118(1),1–44; Jorgenson, A. and Clark, B. (2011) ‘Societies Consuming Nature: A Panel Study of the Ecological Footprints of Nations, 1960-2003’, Social Science Research 40:226-244; Stern, D. (2004) ‘The Rise and Fall of the Environmental Kuznets Curve’, World Development, 32(8):1419–1439; Hornborg, A. (2003) ‘Cornucopia or Zero-Sum Game? The Epistemology of Sustainability’, Journal of World-Systems Research IX(2): 205-216.

(5) see http://www.fsm2013.org/en andhttp://www.reuters.com/article/2012/01/23/us-davos-idUSTRE80M13X20120123

Corporations Have Record Cash: They Also Have Record-er Debt, As Net Leverage Soars 15% Above Its 2008 Peak | Zero Hedge

Corporations Have Record Cash: They Also Have Record-er Debt, As Net Leverage Soars 15% Above Its 2008 Peak | Zero Hedge.

There is a reason why activism was the best performing hedge fund “strategy” of 2013: as we wrote and predicted back in November 2012 in “Where The Levered Corporate “Cash On The Sidelines” Is Truly Going“, US corporations – susceptible to soothing and not so soothing (ahem Icahn) suggestions by major shareholders – would lever to the hilt with cheap debt and use it all not for CapEx and growth, but for short-term shareholder gratification such as buybacks and dividends. A year later we found just how accurate this prediction would be when as we reported ten days ago US corporations invested a whopping half a trillion in buying back their stock, incidentally at all time high prices.

Putting aside the stupidity of this action for corporate IRRs, if not for activist hedge fund P&Ls, another finding has emerged, one that was also predicted back in 2012. Because in addition to still soaring mountains of cash, corporations have quietly amassed even greater mountains… of debt. In fact, as SocGen reveals, net debt, or total debt less cash, has risen to a new all time high, and is now 15% higher than it was at its prior peak just before the financial crisis!

From SocGen:

US corporates do indeed hold lots of cash, which is currently at record levels, but they also hold record levels of debt. Net debt (so discounting those massive cash piles) is 15% above the levels seen in 2008/09. The idea that corporates are paying down debt is simply not seen in the numbers. What is true is that deleveraging has occurred through the usual mechanism of higher asset prices (no doubt an aim of central bank policy). This is the painless form of deleveraging. It is also the most temporary, for a simple pull-back in equities and rise in volatility will put the problem back on centre stage.

 

And while it would be excusable if this debt had gone to prefund future growth, it is a travesty that the only thing companies have to show for it is that it has simply made a few already rich hedge fund managers even richer.

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