Category Archives: Eng

What do we have to do to change the course of history?

The other day I came across the story from the Voronezh region which said that the top seller in the local villages is old bread. Villagers, in the plot the elderly people, buy old bread not only for cattle, but also for themselves. On my Vkontakte page inflamed a debate about whether the residents of these villages can do anything to be able to buy fresh bread or not. My friends Ilyas and Tatiana defended the point of view that people are masters of their own destiny, and that these residents have the opportunity to earn fresh bread; I and other opponents – that everything is not so simple. The dispute ended when Ilyas said he didn’t understand me, and Tatiana converged with her opponents on a frequent occurrence in such cases, which can be described by the phrase “you’re a fool – you’re a fool yourself”. On this occasion, I had the need to systematically present my arguments, to look at the situation more broadly and to highlight the phenomenon to which Ilyas and Tatiana showed clear disdain (that, in my opinion, was the essence of their conclusions) – lumpenization. To do this, we will try to answer the question: what could the Romans do to save the Roman civilization?
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Socialist vs corrupt ethics

Socialist (anticorruption) ethics is the behavior that emanates from the public good. Corrupt (capitalist) ethics is the behavior that emanates from personal enrichment. Initially, the base of power is the behavior emanating from a public good, i.e., socialistic, anti-corruption ethics. In the absence of effective mechanisms to control the power, initial power is subject to corruption, the elite begins to increasingly act in the interests of its own enrichment, and violence (power) becomes the ground of corruption. Such a society over time breaks down because of the fact that the growth rate of consumption of resources exceeds the rate of growth of harvests. This phenomenon is called “Compression”. An example of such a society is ancient Rome. After the collapse of such a society, because of the lack of alternatives, its degradation occurs instead of moving, as according to Marx, to a more progressive social system. After the collapse of the Roman society, in Europe began the period called in history “dark ages”.

The next stage in the development of corrupt ethics is the idea picked up by the Jews in Babylon, the idea that the source of wealth is a private initiative. By the XIX century rationally grounded corrupt ethics transformed into liberalism. Does liberal society face the problem of Compression? Before answering this question, let’s trace the development of Compression on the example of the Russian Empire and serfdom.
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ABOUT THE NEED TO AVOID CURRENCY BOARD POLICY

In order to prevent credits from going to the foreign exchange market, the Central Bank must stop the pyramid it organized there by printing rubles for the purchase of currency. Rejection of currency board policy opens the way to reduce the key rate, which the Central Bank is now raising and thus builds administrative barriers to deter the currency speculators from participation in the currency pyramid. Continue reading ABOUT THE NEED TO AVOID CURRENCY BOARD POLICY

STALINIST ECONOMIC MODEL

There is a misconception that the Stalinist model of the economy is not a market one. This misconception takes origin from Marxists who think that socialism is a special system that is not subjected to market laws. But as it has appeared, it’s impossible to circumvent the law of supply and demand. Then, in the early ’90s, we rushed to the other side, starting to build “market economy”. This misconception induced the spread of the liberal dogma about “the ineffectiveness of state economy”. Most likely, it comes from Mises, who viewed the economy as a system of exchange of information about prices. But production of anything under the plan doesn’t mean the abolition of the price (perhaps it would be correct to express it as the rate of future cost savings, future growth or minimization of future costs to current costs) of the manufactured product and the rejection of the exchange of information about prices, i.e. market in Mises’ understanding. The most important thing that Stalinist economy could make in the meaning of Mises – to see real values, to invest them into prices, to organize the exchange of information about them, to meet the main demand for guns, tanks and airplanes and to become the winner of the Great Patriotic War. To Stalinist economy we can oppose the situation in modern market, where false values dominate, wrong, distorted prices circulate, as Mises would have said, and, as a result, money is washed out of the real sector of economy to the financial one, inflating the financial bubble, the ultimate objective or which is to burst. Continue reading STALINIST ECONOMIC MODEL

GEOPOLITICAL REASONS FOR COLLAPSE OF THE USSR AND VALUE REASONS FOR ITS FUTURE RECOVERY

There is a way of dealing with rats on ships which is called “rat king”. The rats are placed in a closed space, and there they begin to struggle for existence, eating each other. At the end on rat wins, who becomes a “rat king”. Are rats to blame in these conditions for eating each other? Is the rat king to blame for his victory? No. The reason for the observed phenomena lies entirely on the organizers of the action. Then rat king can be used for struggle with rats on a small ship. If the ship is large, he has time to have offspring, and here the fight with rats in finished.

External circumstances have led to the fact that the USSR experienced similar periods in its history. It began with the Civil War – an open struggle of all against all. Stalinist period can be considered a hidden continuation of the struggle of all against all. When Khrushchev came to power, the internal struggle weakens and there begins a period of growth of corruption, which ends with its victory and the collapse of the Soviet Union. Was it possible to avoid this scenario? Yes, if at the weakening of repressions there would begin the transfer of power to people – the natural carrier of socialist ethics, not subjected to corruption, i.e. if there would be implemented the slogan “All Power to the Soviets!” Further we will take a closer look at the external circumstances which led to the disintegration of the USSR. Continue reading GEOPOLITICAL REASONS FOR COLLAPSE OF THE USSR AND VALUE REASONS FOR ITS FUTURE RECOVERY

Limit model. Rejection of false communism.

Our challenge is to solve the following contradiction of modern society. On one hand, we can’t set prices for goods and services below the equilibrium, because it results in deficiency. On the other hand, we can’t prevent the spread of knowledge and information, transforming them into services and setting any prices on them, since non-proliferation of knowledge and information leads to losses in human productivity. Continue reading Limit model. Rejection of false communism.

Altruistic Currency VS LibreMoney

There is a very interesting project LibreMoney. Its essence is that the money issue is carried out directly for the financing of an innovative project. In the scheme with an altruistic currency there is an intermediate – the bank which imposes responsibility on the sponsors of the draft in the form of the necessity to return money plus an additional percentage that reflects the risk calculated by the bank agent. Offhand, taking into consideration qualified work of the agents, such a scheme instead of inflation should cause deflation, because high-quality projects lead to the appearance of to an additional mass of commodities which is much higher than the amount of the initial investment (issue). In practice we face low-quality work of the agents, for example, like in the case with the US mortgage crisis. Agents were providing deliberately substandard loans. That led not only to inflation, but to a collapse of the financial system. The problem of modern Western system is in that it is based on the ethics of the admissibility of deception in order to increase profits. The solution to this problem lies in strict compliance with this ethics where deception is not allowed. The percentage is taken to be sure of maintaining a positive balance of bank assets. But the basis of expansion of the monetary base in altruistic currency is a steady increase in money multiplier. Therefore there is no need to take additional percentage. You may not even charge a fee for the work of the banking agent. In my opinion, it’s the basis for the nationalization of the entire financial system, as it no longer presupposes the existence of profit. In LibreMoney project theoretically there is no bank intermediate, no additional percentage the quality of the projects is monitored by the crowd community which generates the projects, and issue money isn’t returned by the authors.