ALLIANCE FO§ DEMOCRACY

Business – Banks – Politics

Cause of the debt mountain on the FRG / Dreams of those responsible, as if in a fairytale. An outing of the triumvirate "Business – Banks – Politics" by Josef Ackermann, who after 10 years as the head of the Deutsche Bank will no longer be available for the Board, and will be resigning in May 2012 (see Welt am Sonntag, 20th November 2011).

The world of business, which is based on ideas, and which in turn lead to companies, has received too much of the company returns as their revenue, and employees too small a share in the profitability. The founder of the company has the idea for the company, and lays down guidelines for production and employees, who make production and demand possible, and thereby enable the realisation of the idea. The profits of companies in relation to the payment for the realisation are so high that they are largely not needed by the companies (irrespective of whether they are invested in material assets, cash, stocks or shares) and are given out and invested profitably by major banks and savings banks for loans by the banks, which is also profitable for the companies. And in turn mainly to employees, enabling them to increase the demand, and by their payments for the loans enable the employer once again to make money from the returns on the employment income paid to them by the employer. In this way however, the prosperity of the company profits and revenue increases by credit-financed growth, which produces more over time than the growth possible from normal production without credit financing.
By this means the share of employees' incomes would also have to be able to increase disproportionately above the level allowed by normal, planned growth. The company itself should earn only a normal, average return usual for the sector from profits, which in detail however should and could vary within limits. This then also leads to nominal increases. It must however be defined sensibly in percentage terms, without credit-financed growth, for example as a return on sales. This should be measured according to the same return, or perhaps slightly above within the same limits, for a license fee for a patent, which somebody else then uses commercially in order for the idea to be realised. And that the employees should have a greater share of the profit, and no longer vice versa. Machines can replace much; in many semi- or fully-automated businesses (through rationalisation) even everything. But nothing works without people! It is only a matter of displacements!

People – and this must be the sense and purpose of every social order or social system, especially in free democracies – must be able to enjoy the fruits of their labour (usufruct) – and particularly those who earn the profit – the employees! In a capitalist social order in particular, where the character of a free market economy is guaranteed, if only the political framework is derived from the political regulatory function, and the social character is consequently also guaranteed, a fair and reasonable division of the rewards in the above sense must be ensured and guaranteed. Only then can it be considered as an instrument to be regarded by all people as an appropriate expedient for enabling a dignified existence with reasonable bases for subsistence. A fair division in the above sense should be an essential criterion for the future reform of a market economy, supposedly a free market economy so far, and also the framework for an essential discussion and consensus between the parties to collective wage agreements, if the lacking framework is established in law and some freedom of negotiation must still be maintained.
Otherwise the capitalist system also has no chance of survival, as we see confirmed repeatedly throughout history and today in the unavoidable currency crash: in a situation where the rich become ever richer and poverty becomes increasingly widespread. This is where politics has failed us.

If the proportion of those living below the minimum subsistence level continues to increase (> 10%, with the trend towards 20%, and on the introduction of Euro-bonds as high as 30% of the total German population), we will no longer be able to speak of a partial slave state, but of conditions of slavery similar to those encountered in dictatorships.
Politicians who allow this and who are responsible for it still want to be regarded as "social", and the free market economy of their state held up as an example of a social state; what a joke!
Starvation wages which are not increased – without even endangering jobs – to the legal minimum wage in the interests of the social state, but are guaranteed only by a hypocritical, theoretical lower wage limit without any regulatory, legal framework for the collective bargaining partners, borders on contempt of human dignity and the essence of the social state, which in a capitalist free market system can no longer be guaranteed if the system is totally mismanaged by political parties. This means when this actual free market economy with its permanently favoured social character is controlled like aircraft flown by drunken pilots, which sometimes inevitably crash. This situation currently applies to the market economy system of the whole of Europe. Unfortunately!
We have reached this state of affairs because monetary mismanagement by political parties has come to be regarded as the acceptable current practice; in the same way as the failure to comply with the foremost obligations, as the fundamental task of politics, to define the framework – in other words to implement regulatory policy – for sound management and control, in particular of financial markets and institutions, and in particular of politics itself, which has totally failed to meet this obligation. Examples include national insolvency regulations, lacking judicial control of laws made purely for national purposes, such as those relating to the Maastricht Treaty at the European level with regard to the stability package and debt limits to be observed which prohibits new borrowing of more than 3% of gross domestic product (GDP) and maximum total debt of 60% of GDP, and supervision of its observation, e.g. via the TFEU – but which is now to be allowed as the opportunity arises by amendments to the Treaty such as the national debt brake and its circumvention by subsidiary liabilities and guarantees as part of a hypocritical policy of dissimulation, which is no longer compatible with any policy worthy of a democratic system; but with roguery, thuggery or whatever one wants to call it. It is reminiscent of inhuman actions of a few monsters obsessed only with power and profit, with a touch of the very negative, as exists in management positions in the triumvirate of "Business – Banks – Politics" – actually in companies everywhere, as long as it does not come to remuneration systems for employees which might correspond to any appropriate relationship between the idea and its realisation.

The acceptance of poverty in old age also plays a decisive role, in addition to impoverishment through low wages. Political mismanagement is compounded by commercial mismanagement. Both affect the people by whom employers should set their standards. If their sell-out through increasing poverty is accepted – whether by employers, by politics or by the trade unions due to the lack of sensible tactics – the result is an expression of the incapability of all such monsters, who can justly be referred to as such because of their incapability and their egotistical desire for these positions, although their actions – at least in politics – are guaranteed by oaths of office to serve the benefit and the interests of the people.
A people is the sum of individuals, amongst which there are also monsters, who refuse to understand the significance of such oaths, or obviously interpret them differently, and allow themselves to indulge in politicised high-court jurisdiction, with the result that political decisions are made, from the point of view of non-politicians, if necessary by the perversion of justice, by transforming formal law into governmental law – which is why monsters are created through the lacking understanding of many – including with regard to their own position. The result is political disenchantment / high number of non-voters).

All the more so when in the concert of the triumvirate, the same growth is assumed for the future as in the past for all advance planning – if one can speak at all sensibly of planning when it comes to revenue and expenditure policy. This was done simply so that such monsters could present a good image to the people/voters.
The big banks have now been outed by their general, Chairman of the Board Josef Ackermann of the Deutsche Bank AG in Frankfurt/Main, after much long toying with people in the most negative way. Ackermann spoke in an article in the Bildzeitung (16th October 2011) for the triumvirate of business, banks and politics of planning "based on a sense of growth".
The forecasts were based on a feeling that future growth – which is actually unforeseeable – could be equated in planning to past growth. This is how the huge mountains of debt had been created by the policy of the FRG. By feeling, instead of by planning and application of understanding, which cannot justify the high salaries in politics, paid out of taxpayers money, and the high profits of companies, creating total, expropriating mismanagement, giving with one hand and taking away again with the other.
But of course, even black sheep, even when they are late in coming to their senses, still want to be loved by the Lord in heaven. Well, we are people who live on earth, and cannot tolerate such prima donnas, and cannot forgive them, particularly because they also kill. It has been proven that this erroneous planning by the triumvirate, and politics in particular, has and must lead to ever-increasing poverty, in order to enable a further postponement of the crash. The poorer people become, and poverty pushes more and more people to and below the bread-line, the more the mortality rate increases, with people's lives being shortened on average by two years (see relevant press). This is curtailment of life and possible joy of life in an otherwise longer life. And Mrs. Merkel in particular, and the parliament with all its members and their colleagues in Europe are responsible for this.
A planned economy even worse than the planned economy of the GDR, which as we know was brought to an end by the late call in 1989 in the Nikolaikirche in Leipzig – We are the people! This is how borrowing should be understood, which must also take securities into account. The banks and politics have here acted completely against the principles which should apply for them. They have ignored any form of security in the planning. A "jumping jack" method of operation by top, highly-paid politicians and controllers of capital. In other words, those in the most responsible positions for a people (even peoples), who are paid in the millions (and even billions), which results in immensely high annual salaries in the millions for the top bankers. In return, these people should think and consider, and even more importantly they should assess events and market needs as realistically and objectively as possible, and should be able to work in concert. This is exactly what they have failed to do.
Highly-paid in the triumvirate, they have taken Germany and Europe, and also the USA, for a ride; only aroused confidence and charisma counted. (Illusion!)

There is one interesting event which occurred for one of the campaigners of our association Alliance for Democracy in the year 1982 in the Ruhr area at a "Bank für Gemeinwirtschaft" podium event on the occasion of a presentation by the former super-ministers – Finance and Economics Minister of the SPD, Karl Schiller. Prof. Schiller spoke about the future development of the industrial location of Germany, and emphasised what growth rates are brought about by the confidence of the people in their work for the economy. To the objection of our colleague as to why it had never been assumed that there might also be zero growth, Prof. Schiller replied: "Such a situation could not be assumed, not even theoretically, because a nation which had brought about this growth could always count on such growth." This could only be followed by a shrug of the shoulders. Any rejoinder by the discussion participant on this statement and his reply to his question would have been superfluous, and none was made.
In the statements of Mr. Ackermann for the triumvirate and their feelings, this is more than a confirmation of a process which now goes back almost 30 years. It proves how dogged political image-seeking and professorial understanding can be beguiled into making the most stupid statements without any possible basis for justification. After all the failures by their predecessors, the situation remains the same with today's political successor generation: Compiling planning on the basis of "anticipated" growth, which might have been, but will not necessarily be so, testifies to the stupidity and brazenness in highly-paid positions and unbounded irresponsibility towards the people.

This is how they have taken our country and parts of the world in Europe and also the USA for a ride. Only in this way could the situation in America be justified decades ago, an excellent situation from the European point of view. Everything based on consumption and more consumption, and only on credit. We admired from Germany the huge American cars, the skyscrapers, the impossible, which nevertheless seemed to be possible there all the time. There is no waiting any more for confirmation of substance. Today, the USA alone is indebted to Chinese banks to the tune of a trillion in consumer credits. If China, like Europe, had failed in terms of regulatory policy, and again like Europe ignored all the supreme principles of political action, the granting of such loans would not have been possible.

With the collusion of the rating agencies, the big banks with their investment departments have passed on the bill to the mass of normal and small investors, exploiting them with commissions and brokerage fees, surcharges and price losses, by deliberately false rating of company and government bonds, nationalising the losses while privatising the profits.

This system, which has been and is still led by dreamers, has produced "elites", "arrogant people" and "narcissists" in great numbers (there are already over 100 elite clubs in Germany / Elite universities with excellence titles!). Nobel prizes simply for being charismatic, simply for being there, without ever having achieved anything. To be bearers of hope, and to be able to encourage people with slogans such as – Yes we can! – is equivalent to those who asked questions such as "Do you want total war?". To which the real answer is: No, we can't because of debts!
They wheel and deal, creating even for parliaments in Europe no longer verifiable, unconsidered rescue package models, to conceal the deception of the people, while the foundation of the united Europe and the EEU was founded on the concerted association of bankrupt countries, in order to delay as long as possible any loss of face of those in power by means of a new currency, and behind the scenes to be able to reduce part of the debts by the transition to the Euro by means of indirect inflation, a Euro now rightly referred to by people as the "Teuro". The "Teuro" had a justification through verifiable accounting principles in the starting basis of the erroneous basket of goods used by the Federal Office of Statistics for its calculations; this contained no luxury goods, which is extremely counter to the actual conditions in the lowest income sector. This is proof that the feeling of people works better than the understanding of the heads of the triumvirate, which however would have been necessary, instead of basing all future planning on sensed growth, and thereby drawing a line through realistic planning. At the same time, current politics proves that it must be controlled by direct democracy, because every present and future such triumvirate can be better assessed by the people than under the current system.
Just rejoice, rejoice for those who have mismanaged the country, and now present themselves as encouraging speakers and party conference speakers, in order, in their staged opening speeches, to conceal the fact of their own inadequacies, and the cause of the total mismanagement which has led to the current crisis. There are many such former politicians who have omitted to do anything, and now take great pleasure in pointing out that more attention should be paid to what should be done by current and future policy, which they failed to do in what was actually their function as serving politicians, and what was basically their job; but they omitted to do anything.

Those who want to conceal that it is they who bear the responsibility for all lack of efficiency. Dreams. Sensed growth / realised chaos for Germany, the best of all bankrupt European countries. The people must accept and must all be reminded of how unjustifiable this non-financeable give-away policy was, which must now be dismantled the game piece by piece, and will mean further losses when the inevitable currency reform comes. Soon. Thank you. The saving programmes will bring with them demonstrations and rebellions. The major savings package put together by the new Italian Prime Minister Monti must first be accepted.

Under the heading "The secret for the rescue of Italy", the newspaper La Republica writes, "How [Prime Minister Mario] has described the savings package in his presentation is a surgical intervention without anaesthetic, which will bring tears to the eyes of millions of people". The question is whether tears will be enough, and whether the result might not be serious rioting, in which case the security services created by the mis-managers for their own purposes will be used, i.e. inimically against their own people and in breach of their oath of office.

It will be like the crying of children to whom the mother gives a bar of chocolate and then takes it away again. Responsible people should never act this way – whatever their political allegiance. A mother who understands anything about children, who are of course people, would never do that except in the last extremity. The high-earners in this triumvirate are never in this position. They were and are damnable idiots, who decide according to their feelings, on behalf of millions of people, without any safety valves, or devote any thought in this direction. Liars. They are all failures, and it is good that with a last, final touch of morality, the head of the largest German financial institution wanted in this way to clear his conscience, as he did before in response to questions of television as to what he thought of the fate of German "foundation" funds, or rescue package contributions for Greece. That was in mid-2010, at which time Ackermann admitted that he regarded these funds as totally lost for the German people. In this sense, the Alliance for Democracy also reported in the >2nd letter to the members of the Bundestag that Ackermann, probably influenced by much criticism, was involved in the deals made by the banks with the rating agencies on the basis of false ratings. Ackermann was thereby suggesting the return of bank activities to the conservative area of financial transactions.

In the view of normal people, they, the high-earners of this triumvirate, are all failures, and no longer to be thought of as morally positive, when they admit to mistakes in the press, and whine that they should have done something sooner, so that the mistakes would not have occurred. Particularly since it can be suspected that after such a miscarriage the intention may exist to force former colleagues out of the picture, who only stood by and did nothing, or at least to pluck a few of their feathers. Because they are all gamblers, who have taken refuge under the shelter of rescue packages, leaving everyone else in a state of hopelessness, according to the motto: "Every man fir himself!". And want to save themselves from these countries, with topped-up rescue packages, which are no more than their own lifeboats, with high leverage effect and unlimited ESM from 2013, which now applies from 2012, and who have therefore long since broken their sworn oath of office to act only for the benefit and in the interests of the people of the country. And then claim further aid from the ECB for the further concealment of this policy of bankruptcy, which will be dearly bought and will also burden the Bundesbank (together over € 250 billion).

If we were not to behave humanely towards such stinking rats, we would have to say: To hell with you all. All popular parties! And so that things finally go differently – so that we can expect reason, decency and morality from people who have learnt something from past crashes – unlike those referred to above! The outing of Mr. Ackermann is a resounding box on the ears for the freeloaders of politics and for a Chancellor who does not bear all the guilt for the policy alone, but who has for years been the supreme representative of the policy, and who has done nothing but shilly-shallying. This requires "guideline competence" for the Chancellor. Where are these guidelines? There are none which Mrs. Merkel might apply to herself or by which she might be guided. If there are no guidelines, how can she be competent for this office?

What the Chancellor has allowed the financial institutions to do in the way of rip-offs and exploitation of the man in the street must be laid at the door of politics as a whole. Because there is of course also the opposition, whose only concern is political survival – the Alliance for Democracy deals with this subject in another article.

Not even after the financial crisis, which began in September 2008, was it considered necessary to finally lay down framework guidelines for financial institutions and financial markets which would no longer allow such abuse and mismanagement in future. Only now, when the next financial crash is looming, the financial markets have long since become unstable and the Euro and the European Union, whether as a currency union or the whole of Europe, are in grave danger, have approaches been made, which have also been described in the relevant magazines, which are intended for the regulation of the financial institutions and financial markets, and the drastic clipping of the profit situation, according to the information of bankers, as reproduced in magazines such as Manager Magazin.
Irrespective of these facts, nobody ever had any idea of what to do. The Chancellor acted according to the mood of the day. She still does not know what she can do to combat the Euro crisis. The preliminary discussions and the decisions on the submissions for the Euro summit arranged for 8th December 2011 for the rescue of the Euro and the European Union are a >mockery for all Germans, but also for other people in Europe.
Between 60 to 70% (following opinion surveys on the rescue of the Euro) of the people of the FRG think that the Chancellor has no chance. In this respect, she no longer has the democratic majority of the people behind her. Her predecessors in the major popular parties of the SPD and mainly the CDU/CSU and FDP have lost the gamble with their dreams of "sensed" growth.
A vote of complete "no confidence", and therefore yet another urgent call for controlling, direct democracy with plebiscites and referenda.