Tag Archives: Capitalism

The United States are growing faster than China

The world`s biggest economy is the United States followed by China, and sooner or later, China will replace the locomotive and be the biggest economy in the world. You can delay it, but it will happen in this century anyway.

They are both in conflict with each other with tariff tensions and a trade war. A strategy that is bad for both of them in the long run. The U.S is waiting for China to come to the table and make a fair deal. Today is the first day of talks to renegotiate the trade dispute between them. A deal that President Donald Trump repudiated.

Take a look at the chart above. Surprisingly, the U.S is more productive than China. Twice as much. The US economy advanced an annualized 3,4 percent on quarter in the third quarter of 2018 while the Chinese economy grew by “only” 1,6 percent quarter-on-quarter in the three months to September last year.

The Chinese economy is slowing and this has been going on for a while. But it`s not because of the trade war. China obviously have some problems and the China-U.S tension is one of them, but this is not the first time China and the U.S are in conflict with each other.

Deng Xiaoping and President Jimmy Carter signed a historic accord in 1979 and then reversed decades of China-U.S tension. Deng Xiaoping was a Chinese revolutionary and veteran of the Communist Party and he was eager to adopt capitalist methods and reforms in order to stimulate economic growth and restore confidence in the party.

Today, China has embraced capitalism but remains Leninist at heart. The founder of the Soviet Union, and his Bolshevik revolution, Vladimir Lenin changed China`s economic and political landscape.

Lenins Russian revolution in 1917 have a causal relationship with the birth of Chinas Communist Party in 1921 and the founding of the People`s Republic of China in 1949. As Mao Zedong once said: “The salvoes of the October revolution brought Marxism-Leninism to China.”

Lenin has played a much bigger role in China than Karl Marx and Friedrich Engels. The wholesale execution of enemies inspired Mao`brutal dictatorship and his launch of the Cultural Revolution under the theory of “continuous revolution under the dictatorship of the proletariat.”

Now, China has changed dramatically since Deng Xiaopings free-market reforms and Maos terrifying Leninist experiment in utopia. Now, China is the world`s second largest economy. 70 percent of the “socialist” economy is privately owned and nobody have more billionaires than China right now.

China is more a Leninist capitalist state than a Marxist socialist one. 800 million people in the middle class has jumped on the consumerism train in only a couple of decades under the stewardship of communist totalitarianism. Leninism`s lasting legacy.

On the other side, China has a debt crisis and a real estate bubble, so the question is; when will China collapse, and will it cause a global crisis? China is declining and it will continue to do so. Lending money to Kenya or Venezuela to name a few, are putting them all in a debt trap and it remain to see that Beijing can afford it. I`m in doubt.

Xi Jinping and his leaders know that they are in a very weak position, so they have to come to the table and make a deal with the U.S.

The stock market is in a correction territory at the moment. Investors have priced in two rate hikes this year and some U.S-China tension fear, but Trump reports “Big Progress” in trade talks with China were top trained negotiators came to the table earlier today.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

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NATO not welcome in Trondheim by Norwegian Communists

In autumn 2018, Norway will be the host country for NATOs largest military exercise, known as Trident Juncture. But some people in Norway doesnt like that; The Communists in Norway. They will hold a Anti-NATO demonstration to take place in Trondheim on October 20th.

A few days ago there were many posters in Trondheim with this headline; NATO NOT WELCOME! But 40,000 troops are now in Norway from 30 nations, with 140 combat aircraft, 70 ships and 10 000 military vehicles. What they want is to train for war in central Norway.

According to the Communists in Norway, the exercise costs Norway more than 2 billion NOK and will create pollution for people and the natural environment.

The Communist Party of Norway and the Communist Youth of Norway organize a large demonstration and public meeting against the NATO military exercise on 20th of October 2018 at 13:00 pm in Tordenskjoldsparken in Trondheim.

People have often told me not to buy any American stocks, so I think I know what people I have around me. This is people with a Marxist-Leninist perspective. The same group of people can be seen in Turkey, Poland, Venezuela and Hungary to name a few.

This is people who don`t like capitalism. They are anti-capitalists and fight against what they call «imperialism.»

On their website they have this note; In the European Union the rate of unemployment in women was 10,6% in 2012 and 10,1% in 2014 (Eurostat), while the total number of women living within the limits of poverty reaches 65 million!

They also had this note; In the capitalist world especially in western Europe the labour achievements came as a result of constant and bloody class struggles. The existence of the Soviet Union and the example of the socialist construction forced a significant number of western bourgeois governments to grant some social and labour rights to their people.

However, after the counter-revolution in the USSR and eastern Europe, these social and labour rights were ferociously attacked. Today (in 2016), we live the capitalist barbarity of mass unemployment, underemployment, reduced salaries, mass lay-offs, zero-contract labour relations, child capital`s profitability; from the U.S of the 47 million people who live on the edge of poverty to the European Union of the 25 million unemployment people!

My note: This number is from 2016 and have changed. Unemployed people in the EU is now 17 million while it is 6 million in the U.S.

Furthermore, they say; the public healthcare system that was established in the Soviet Union consists a significant example of socialist construction. In Soviet Russia there was a broad state network of healthcare, based on the centrally planned socialist economy, which provided free services of medical care for the whole population.

In capitalist Russia of Mr Putin, life expectancy rate declined. In 2004 it was at 63 years of age. Furthermore, in capitalist Russia of oligarchs and monopoly groups, healthcare isn`t free and public anymore; numerous state hospitals and clinics closed while large private hospitals were created, the work «accidents» were increased (6,000 deaths every year) and the Russian working people have to pay for the services in the existing public hospitals, the Norwegian Communists say on their website.

They also talk about public and free education system. A unique achievement of Socialism`s construction in the Soviet Union was the complete elimination of illiteracy and the rapid increase of the educational level, and the author came up with this conclusion;

In any sector of the social and economic life, Socialism proved its superiority over Capitalism. And when we talk about «superiority» we refer on how the Socialist system managed to satisfy peoples needs by eliminating the exploitation of man by man.

Capitalism, with it`s anarhist nature in production and the deification of profit, has nothing more to offer to humanity except from poverty, misery, unemployment, inequalities and wars.

The Soviet Union and the socialist states of the 20th century, despite their existed problems, proved that a better world is possible. Despite the temporary historical setback of the 1989-1991 counter-revolution, nothing has finished. The end of history didn`t come, Mr. Fukuyama and dear apologists of Capitalism.

Socialism-Communism is the future of humanity, author Nikos Mottas said. A PhD candidate in Political Science, International Relations and Political History, and the editor-in-Chief of «In Defence of Communism.»

My note: Why do communists always talk about non-profit organisations like health-care systems and educational systems? You can also add the police force and fire department. They are all non-profit organisations. But they do not create something. It`s just a little part of the society and just a cost.

Capitalism and profit organisations are something different. A mix of Capitalism and Socialism and Communism can be a better way. In other words; a mix of non-profit and profit organisations. Its not a question about Capitalism or Communism. Its both. A mix.

You dont buy stocks in a hospital or a police force. Its a non-profit organisation. But you buy stocks in Apple so they can grow and voila; you have a revolutionary product called; iPhone. That`s wealth for you. It made the world a better place. It made your life more easy.

Socialism and Communism are both old words. They belong to the old school and doesn`t sound good at all. Why not change the words? Why not call it “Crowdfunding?” A much better word.

The Communists in Norway will hold a public meeting with the theme «How do we fight imperialism?» and the meeting will take place in Trondheim at 18:00 pm. After the meeting there will be a social gathering.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

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The European Union rose “only” 0,4 percent in Q1 of 2018

Last week I talked about America`s fantastic growth of 4,1 percent on quarter in Q2 of 2018, and this is only the beginning. It is no doubt; President Trump must be doing something right. But, what about the European Union?

GDP in the European Union rose «only» 0,4 percent on quarter in the first three months of 2018. Not much to write home about. But the growth have never been above 1 percent since the financial crisis in 2008.

The European Union reached an all time high of 1,30 percent in 1999 and that is right before the tech bubble burst. Since then it has been a dead fish, reaching an all time low of -2,60 percent in the first quarter of 2009.

At the same time we can see that the unemployment rate reached a record low of 6,80 percent in February of 2008, and that`s right before the financial crisis. It reached an all time high of 11 percent in February 2013, but in May this year it fall down to 7 percent again.

This isn`t good enough if we are living in a capitalistic world.

The European Union in Brussels are nothing more than unelected bureaucrats. Draghi and the ECB have, just like Japan and the U.S «printed» a lot of money, and will continue to do so. If they can`t turn around the ship, they need to consider a strong cheerleader.

European Commission President Jean-Claude Juncker had a meeting with President Trump last week. They were talking about trade, free trade and tariffs. Mr Trump`s goal is to make better deals so both the U.S and the EU can take more profit and prosper.

I think that the EU should be glad for that and they need to hurry up. The U.S is the world`s third biggest exporter, yet exports account «only» for 13 percent on GDP. Exports in the U.S reached an all time high of 215328 USD million in May this year, which is pretty impressive.

The EU has 28 member states and the biggest among them all is Germany (21 percent of total GDP), the United Kingdom (15 percent), and France (15 percent).

Exports of goods and services account for 46 percent of GDP while imports account for 42 percent, adding 4 percent of total GDP. But this is about to change. If the UK contribute with 15 percent of the total GDP in the EU, then what will happen to their growth after Brexit?

That being said; nor is the UK a success story. The British economy grew by 0,1 percent in the first three months of 2018 and well below 0,4 percent in the previous period. It is the lowest growth rate since a 0,1 percent contraction in Q4 2012.

The largest contribution to growth in the UK was from household spending at 0,2 percentage points. From the production side, the service industries made the largest contribution to GDP growth, followed by production.

Agriculture, the smallest component within the output approach of GDP made no contribution to growth to one decimal place, while construction deducted from GDP growth. The service industries increased by 0,3 percent.

Positive growth was recorded within all sub-sectors of the services industries; distribution, hotels and restaurants (0,1 percent vs -0,1 percent).

President Trump have repeatedly said that the EU have treated the US very bad. I have written many articles about that long before Mr Trump`s inauguration. The European Commission has fined Google €4,34 billion for breaching EU antitrust rules this month.

In May 2009, Intel was imposed with a 1,06 billion euro fined for abusing its market dominance on central processing units. Microsoft has been in trouble with the Commission on several occasions. In 2004, the Commission ruled that Microsoft had abused its market dominance.

In 208, the Commission fined Microsoft nearly 900 million euros for charging «unreasonable» royalty fees. In 2013, another fine of 561 million euros was imposed on Microsoft. This time for failing to comply with the Commission`s ruling that it had to allow users to more easily choose a prefered web browser.

The European Commission fined Facebook for 110 million euros in May this year in relation to its takeover of WhatsApp. Facebook acquired the messaging service in 2014 for $19 billion, but provided the Commission with misleading information about the acquisition.

In August 2016, the Commission ruled that tech giant Apple had received illegal tax benefits from Ireland worth up to 13 billion euros. Ireland was ordered to recover the unpaid tax from Apple, plus interest.

As early as 1966, British Politician Tony Benn said that «Communism run by commissars from Moscow did not work, and nor will capitalism run by commissioners in Brussels. Both deny people their right to develop in their own way.»

Now, under President Donald Trump, big companies like Apple are moving home to the United States with billions of dollars. Apple alone, are bringing in $230 billion. They will build new plants and a magnificent campus.

They will spend their money wisely and the money will be in the U.S. All this is possible because of Trump`s tax cuts and reforms. This is how you make growth.

 

 

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DSA are socialists because they share a vision of a humane social order based on popular control of resources and production

Democratic socialists are rising in America, but who are they? DSA stands for Democratic Socialists of America, and on their website they say that “DSA is the major organization on the American left with an all-embracing moral vision, systematic social analysis, and political praxis rooted in the quest for radical democracy, social freedom, and individual liberties.”

The party has been around since 1982, and it started as an activist organization. In the early 80`s, they had meetings and talked about Carl Marx. According to their own website they say; «….that both the economy and society should be run democratically to meet human needs, not to make profits for a few.»

DSA is founded by two organizations from the 60s and 70s, which is New American Movement and Students for a democratic society (SDS). SDS is the group that produced Bill Ayers, Bernadine Dohrn and The Weather Underground terrorist group that was responsible for 25 bombings in the early 1970`s.

In 2011, the DSA joined the Anti-fa group in the Occupy Wall Street movement from day one. At that time, the DSA had only 6,500 members, but now they have more than 24,000 members. The group has mounted a national student debt campaign. The group also supported the «Black lives matter» movement.

The Occupy Wall Street (OWS) was a protest movement that began only six days after 9/11.

The movement started in Zuccotti Park, located in New York City`s financial district, receiving global attention and spawning a surge in the movement against economic inequality worldwide.

The OWS slogan “We are the 99%,” refers to income inequality and wealth distribution in the US between the wealthiest 1% and the rest of the population.

Occupy London began in solidarity with the Occupy Wall Street protests in New York, and it was a movement for social justice and real democracy in London, England. It started 15 October 2011, and it was a part of the international Occupy movement.

Some media described it as an “anti-capitalist” movement.

They also helped raise money for the national network of abortion funds. They want free universal health care and a guarantee of basic income. Their favorite president candidate was Bernie Sanders in the 2016 election.

DSA are working to legitimize socialism as a mainstream part of US politics. On their website they say; “We are socialists because we share a vision of a humane social order based on popular control of resources and production, economic planning, equitable distribution, feminism, racial equality and non-oppressive relationships. We are socialists because we are developing a concrete strategy for achieving that vision, for building a majority movement that will make democratic socialism a reality in America.”

It says “popular control of resources and production.” That sounds to me like Carl Marx. So, what is the difference between Socialism and Communism? Lenin called himself a Democratic Socialist. He said;

“We Social-Democrats always stand for democracy, not “in the name of capitalism,” but in the name of clearing the path for our movement….”

This Lenins-phrase describes the strategy of DSA.

 

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Socialists across the rich world aligned themselves with a range of liberation movements

Socialist parties became a dominant political force after the world wars in much of Western Europe. Along with communism, socialism also came in various forms in the newly recolonized countries of Africa, Asia and the Middle East.

Socialists across the rich world aligned themselves with a range of liberation movements. In the U.S, many, though by no means all, feminist and civil rights leaders have espoused aspects of socialism. On the other hand, socialism has acted as an incubator for movements that are generally labeled far-right.

 

 

European fascists in the 1920s and 1930s adopted socialist ideas, though they phrased them in nationalist terms: economic redistribution to the workers specifically meant Italian or German workers and then only a certain, narrow type of Italian or German.

In today`s political contests, echoes of socialism – or economic populism, to critics, are easily discernible on the both the right and left.

Communism and socialism are economic and political structures that promote equality and seek to eliminate social classes. The two are interchangeable in some ways, but different in others.

In a communist society, there are no wealthy or poor people. All are equal.

Like communism, socialisms main focus is on equality. Workers receive what they need to produce and survive, but theres no incentive to achieve more, leaving little motivation.

The United Kingdom provides basic needs like healthcare to everyone regardless of their time or effort at work. In the U.S, welfare and the public education system are a form of socialism.

Both are the opposite of capitalism, where limitations don`t exist and reward comes to those who go beyond the minimum. In capitalist societies, owners are allowed to keep the excess production they earn.

Competition occurs naturally, which fosters advancement. Capitalism tends to create a sharp divide between the wealthiest citizens and the poorest, however, with the wealthiest owning the majority of the nation`s resources.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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