NARRATIVES ON CULTURE, CYBERNETICS, AND COMPLEX SYSTEMS. PROSE, POETRY and MEMOIR PIECES.
Wednesday, April 01, 2009
Capitalism is boring ... that's why they're protesting
Sometime ago I wrote this, on a flight to Oxford University:
EXCERPT ON CULTURE AND TRANSFORMATION
"Culture" has become an important debate in an age wherein boundaries continue to shift and peoples began to claim their rights as citizens of the country they are in, and the meaning of democracy is beginning to be understood. Culture, to me is not merely about the house we inhabit or merely the tools we use, but a combination of both and more than this, it is about the way we enrich the sense of humanism we embody.
I am reminded by what the Spanish philosopher Ortega y Gasset said, "Man does not have nature… what he has is history." This seems to be a notion of humanity worth exploring if our belief about human evolution takes into consideration how human beings take what is available form nature and transform the resources into tools and institutions, and then turn institutions into tolls that will transform human beings into classes of people who have the power to turn less powerful others into machines or automatons who have lost their soul to the spirit of the machine.
One can also argue that the origin of domination of human beings over others comes not via the manifestation of "evil within" as theologians would argue, but also a consequence of enabling technologies that speed up the enabling of "evil within". As in the case of slavery, it is not merely through "evil" that slavery was born but through human being's control of knowledge and consciousness and the nature of how one defines each other. It is through the technology of "language" and the written and spoken word, and whoever has better control of these will determine the nature and nurturance of slavery. As Marx in his "deterministic way of analysing history" would argue, whoever controls the production of knowledge controls the means of controlling the consciousness of others.
One can also argue that all forms of slavery, whether ancient, modern, or postmodern have been made possible by the "evolution of institutions" that evolve out of "inscriptions". This means that whoever authors the ideology that creates the Great Pyramids of Gizeh, The Great Wall of China, The Great States of Greece, Rome and London, authors the means of institutionalising people through these institutions. In Malaysia, the institutionalisation of The Great Johor Super Corridor, inscribed in the name of The Iskandar Development Region, is yet another form of postmodern institutionalisation of postmodern slavery mystified in the name of globalisation, free enterprise and liberal democracy, in which the profits will be siphoned out of Johor whereas the locals will become postmodern slaves happily made to believe that they will be producing for the glory of The Kingdom of Johor specifically, and the government of Islam Hadhari in general. The concept of " hamba sahaya" is taking a semiotic term.
One can see how much the stock markets of the world whether in London, New York, Tokyo or even Kuala Lumpur – as powerhouse institutions of corporate capitalist domination – continue to allow their players to bet on the lives of others and make the powerless of the world pawns in the precarious and pandemical game of postmodern matrix of global slavery, by the click of the mouse. These are, again, the nature of the rhythm of capitalism in synchrony with the tune of the velocity of money as it races up and down Wall Street. The "bloodsuckers amongst us", as American profound revolutioner Malcolm X would say, called the capitalists, have been successful in leeching off the world's poor through the control of language and the design of the architecture of financial power.
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ATTENTION!!!! SAVE MALAYSIA!!!!!!
http://www.petitiononline.com/pmbersih/petition-sign.html
SIGN THIS PETITION TO SAVE MALAYSIA FROM NAJIB RAZAK
FWD TO SHARE:
The world's financial mess, as explained by Phua Chu Kang
(Phua Chu Kang [real name is Gurmit Singh - Chinese adopted by Sikh family] is a Singapore comedian - for 100% appreciation requires working knowledge of Hokkien - therefore glossary of terms at end of article.He makes more sense than all our analysts put together!)
Preface: Subprime Loan
In American, just like all the normal human being in the world, when they make any major purchases, they will always ask bank for loan.
However, the sorhai american company always like to retrench people and thus the people there the income not very steady one.
In Malaysia, when your income not steady you will loan money from AhLoong instead of BANK.
But in america , their FBI very power so there is no Ahloong, instead their bank will loan money to all these not steady income people and this type of loan is called Subprime Loan.
Chapter One: How it started
About 10 years ago, all the commercial banks in American were promoting their loan with advertisement in all kind of media and since most Ang Mor are very "ada gaya" and "hao-lian" type of people, the bankers came out with special packages for these pokkai fellas.
So, Ads like these were flying everywhere:
"No repayment for first 2 years"
"Want to be rich? Buy Property!"
"Money no enough? Borrow from me!"
"Zero down payment"
"Low rate guaranteed"
"Follow what Robbert Kiyosaki says in his Poor Dad & Rich Dad book"
Wah! These packages are damn fierce wan!
It basically tell people don't worry for the about repaying the loan because you may strike lottery before payment is due!
In the event you don't strike lottery, you can still sell the house that you bought at higher price and pay everything and keep the gain!
Because of packages like this, many American (especially those who think if Black and become president of USA everything is possible) started to borrow money and buy house as INVESTMENT !
So, the banks business become very good, the accounts all look damn solid and all the bankers got huge bonus!
But now....got one problem...money all loan out but who can guarantee that these sorhais will be able to pay back when time comes ?
Chapter Two: Investment Banks Also Want
After collecting his huge bonus, the CEOs of the commercial banks also need to do more creative works or else they will be fired soon.
So, he went to see the bigger brother - Investment Bank!
For those of you who don't know, the Investment Bank in US is damn power wan !
Their name also damn solid like Morgan Stanley, Lehman brothers, Goldman Sachs.
The commercial bank CEOs objective is very simple, they want the Investment Bank to share share and join with them to play the game of Subprime Loan!
Even though the Investment Bank name power, their top management are also same like us eat full nothing to do one.
So, they get all those economists, professors, even Nobel prize winners and together go to starbucks drink coffee and blow water.
After many rounds of talking cock, they concluded that these subprime loan is very risky but very exciting and profitable!
Something like bank robbery!
As a greedy bunch of motherfuckers working for
greedy Investment Banks, they decided not to miss this great opportunity so, the Investment Banks are in!
Chapter Three: How The Investment Banks Play
Since Investment Banks are so power and big! They also decided to play it BIG!
So, in order for them to raise all the fund to lend it out to those pokkai house owner, they issued something call CDO (Collateralized Debt Obligation).
In line with the reputation of Investment Banks, the name CDO also power meaning no one understand!
But Lin Peh tell you la, these CDO is actually something like Investment Banks borrow money from the some sorhais but the loan is guaranteed by those pokkai house owner's loan and their fucked up "very expensive" house.
So, where to find such sorhai ?
Chapter Four: Hedge Fund is the Real Sorhai?
In order to find the sorhais who are willing to put out such big sum of money for this type loan, the Investment Bankers did a lot of road show and even engage professionals to make their powerpoint presentation look solid.
After that, they invited groups and groups of sorhais to come listen to them talk cock, drink wine and see their powerpoint.
When the powerpoint presentation said that the average return on CDO is approximately 12%, the saliva of the Hedge Fund managers started to drool, so they decided to put their money in and play the game also!
Before you jump into the conclusion that hedge fund are the sorhai, let's look at how the hedge fund got so much money....
The basic job function of hedge fund managers are killing each other at wall street without seeing any blood!
They are the one who go around the world, screw peoples currency, stock markets, commodities so the CDO is only a small case la !
The hedge fund managers went around the world and look for low interest loan.
For example, Japan interest rate has been very low since the day Karaoke machinese was invented.
So, the hedge fund went to Japan and borrow at 1.5% which means, they just have to sign a few signatures, get the money from Japanese and then give to the investment banks and they can sit home masturbate and enjoy a net return of 10% without doing anything.
With deal like that, the more they borrow, the more their return la!
Do you still call them sorhai?
Chapter Five: Now, Everyone Can Be Rich!?
So, all the deals are now in place and the cash started to flow!
Strange thing does happen when you have such a huge system running - from the year 2001 to 2006, the real estate market in US was at a super boom!
Everyone was buying houses and make a lot of money!
So, they were right about becoming a real estate tycoon without having to come out with a single cent!
So, from house owners to banks to investment banks to hedge fund all making money!
Damn solid!
However, the investment bankers were not too happy when they see the hedge fund was making so much money from the CDO without having to do any donkey work.
So, they got jealous and they themselves also invest in CDO!
It is something like Ahloong themselves go borrow from another Ah Loong!
When that happened, the hedge fund managers see that the CDO was in such hot demand, they also became greedy and they pledge the CDO to banks so they can borrow more money to invest in more CDO and everyone just become richer and richer!
Chapter Six: Let's Insured Everything!
When the Investment Bankers see that the CDOs merry-go-round becoming so big round just like the Eye On Malaysia like that, they also got panic already.
So, to play safe, they call the insurance company and tell the insurance company that they want to buy insurance for their CDOs!
Even though the insurance companies are generally greedy motherfuckers, they also not sorhai one.
They study the track record of the CDOs and they charge the Investment Banks a heavy premium for it and give this type of policy an even more power name called Credit Default Swap (CDS)!
Since the hosuing market was ok, and everyone was still enjoying huge profit, the Insurance Companies too made very good money from these CDS in the last few years because they just sit there and collect premium without paying out anything!
That's WIN WIN SITUATION - just like what your teacher taught you in school!
Chapter Seven: Not The End Of Story
As usual, eveything that can generate income, people on the the wall street will create a unit trust fund for it.
So, over the last few years, Many Unit Trust Fund that invest in CDS were created.
However, in order to generate good sales for these Trust, these unit trusts must get good rating from the rating agency.
So, the people on wall street used their creativity to 100% and came out with a brand new idea:
- Assuming the companies already made $80 Billion in the CDS over the years, they will allocate a portion of it lets say $10 Billion to secured the Unit Trust Fund. Using the $10 Billion as 10% securities, the Fund will sell to the public $100 Billion of the Unit Trust.
That means, if the Fund lost money, the first 10% ($10 Billion) of the loses will be covered by the Insurance.
But when it makes money, everything belongs to you!
Good Deal or not?
Therefore, the rating agency also give the fund AAA (highest) rating!
Since the deal is so good and with AAA rating somemore, everyone oso bought!
Old man bought!
Young man bought!
Pension fund bought!
Education fund Bought!
It was such good business, the Unit Trust decided to issue more Units to be sold!
However, the problem is they never increase the $100 Billion securities! which also means the "reserve" for the losses has decrease from its original 10% to god knows what.
Chapter Eight: No Light At The End Of Tunnel
Just like Old chinese proverb said "Everything You Ate You Have To Vomit Out".
The good time came to a stop by end of the year 2006 when the housing prices started to come down, people who bought houses found out there are no more buyers for the houses so they just defaulted on the loan and said F@*K IT!
The Bank try to lelong out those houses but could not find buyer. Citibank, Bank of America all reported huge loses..
So, the bank all said F@&K IT!
Since Investment Banks has even bigger stake than the commercial banks in these loans, Morgan Stanley, Lehman Brothers all reported even bigger losses.
So, the Investment Banks also said F#$K IT !
When the Hedge Fund saw all the other fellas all f@#k*d, they also cannot escape and Hedge Fund Stake is even bigger!
So, Hedge Fund said F@%K IT !
And of course, all the AAA rating Unit Trusts F#@K&D !
Now, Pension Fund F@#K%D!
Education Fund F@#K%D!
The share market F@#K%D!
USA F@#K%D!
Europe F@#K%D!
Japan F@#K%D!
Australia F@#K%D!
The Whole World F@#K%D!
Bush F@#K%D!
McCain F@#K%D!
Obama F@#K%D!
GLOSSARY:
sorhai - stupid female genitalia
AhLoong - Loan shark
Ang Mor - Red hair - Singapore equivalent of Mat Salleh
ada gaya - Malay for wanting style
hao-lian - Hokkien for show-off
pokkai - flat out of money
blow water - boasting
talking corks - talking nonsense
Lin Peh - I, me, in authoritative tone
---
"Somebody wins, somebody loses.
Money itself isn't lost or made,it's simply transferred...
...from one perception to another, like magic.
This painting here.I bought it ten years ago for $60,000.
I could sell it today for six hundred.The illusion has become real.
And the more real it becomes,the more desperate they want it.
Capitalism at its finest."
-Gordon Gekko
HOW THEY CHEAT & GET AWAY
–The Making of “The Awakening of the Poor Sods”:
Morgan Stanley and Goldman Sachs recommended the purchase of Credit-Default Swaps (CDS) -- thereby betting against debts of eleven near bankrupt states, including California, New Jersey, Florida, Wisconsin, Florida, and Ohio among others.
Many of these were Municipal Bonds that they had originally underwritten -- thereby, through an act of blatant opportunism they were adding to the destabilization of the financial markets already at the edge.
CDS are in effect insurance policies.
But CDS, rather than being called "insurance," became, in the parlance of the Street, "derivatives," -- making them much more elegant to deal with and for the rest of us much more difficult to understand.
CDS were, in this case, simply insurance bets on the bankruptcy or inability of municipalities throughout the country to meet their debt obligations.
To buy "insurance" one would naturally go to an insurance company to cover the risk.
And the insurance company would sell you an insurance policy and would set an amount on their balance sheet that would represent a reserve against the potential loss/payout.
An insurance company likely to write a policy covering this would be AIG.
After all, AIG had become the king of CDS. In all likelihood this was the case for the likes of Goldman and Morgan-Stanley.
In the mumbo-jumbo of the term "credit-default swaps," the word "insurance" is not mentioned. And according to the good souls at AIG, if you don't use the word insurance, you don't have to set aside any reserves in case of loss.
And if you don't set aside any reserves, you can issue all the CDS the market can bear (understood to be in the range of $400 billion at AIG), cash in the policy premiums as a humongous supplement to your usual insurance business, allowing for zillions in paychecks and bonuses.
And of course, if it all comes crashing down you can put up the "systemic risk" flag and your Wall Street friends in Washington will charge to the rescue with taxpayer dollars.
One knows the folks at Goldman are no fools.
Were they going to put good money down for CDS that their counterparty (AIG) might not be able to honor because it made no reserve provisions?
Or was the temptation of another big pay day just too tempting not to risk Other People's Money to play the game?
To date US public have poured $160 billion into AIG -- this while others see the value of their homes cut in half, the better part of their 401(k)s wiped out, their government services significantly reduced, and other lending institutions diligently try to work out past due credits, taking significant mark-downs and extending due dates to keep industries and corporations alive.
This, as Goldman Sachs and Morgan Stanley are being covered 100 cents on the dollar on their speculative positions of intrinsically flawed CDS derivatives on which they gorged themselves to the bursting point.
It is past time that a distinction be made between that part of AIG's business that was a "large and stable insurance company," and that part that was a "hedge fund," or better put, a casino.
So the big question becomes, why should AIG's CDS be paid down 100 cents on the dollar when the rest of the country is taking at or near 50% haircut on the value of its assets?
--
FUNNY NOW THAT TV3 NEWS IS BLAMING WELL INFORMED TAX PAYERS WHO HAVE VOLUNTARILY JOINED THE MASS STREET PROTESTS IN SOLIDARITY WITH THE POOR BRITS (MANY OF WHOM HAVE JUST BEEN RETRENCHED/DISPOSSESSED) HAVE NO RIGHT TO BE ANGRY
-- AINT IT THAT IT IS THE IRRESPONSIBLE GOVTS & THE GREEDY CAPITALISTS WHO'S BEEN WORKING HAND IN GLOVE WHO ARE CAUSING ALL THESE MISERY?
& THE PUBLIC ARE AS ALWAYS MADE TO PICK UP THE TAB..
WAKE UP TV3! WE KNOW U R SMART BUT THIS IS NO TIME TO SUCK UP PLEASE
WE ARE SICK -- & BEST ADMIT IT!
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