Tuesday, December 25, 2012

sick capitalism: the rich and the poor contradictory class contradictions

The institutional limitations kidnapped national interests

Luis Gomez (National Autonomous University of Mexico, the director of the Centre for Social Policy Research): Western democratic institutions exist historical limitations, due to the political parties alternating in power, it is difficult to imagine a political party for the collective interests of the country as a whole. In this extremely narrow "political context", the partisan interests above the national interest, lead to extremism, absolutism and negationism produce. It has been formed in the West and the long-term existence of a political and cultural traditions, radical institutional change can occur only through radical reform or some kind of revolutionary movement broke out before, this is unlikely to be achieved in today's real-world conditions.

Qu Xing (China Institute of International Studies): Western state system predicament is mainly reflected in the ruling and opposition parties a zero-sum game, the proliferation of populism as well as internal contradictions marrying. Hope resides in the failure of the ruling party came to power by the opposition. This zero-sum relationship led to the reform measures proposed by the ruling party often become the main point of attack of the opposition. In addition, voters tend to be most concerned about the immediate and local interests, big phenomenon promised to please voters flooded elections, visionary and dare to say the truth it is difficult to be elected. The consequences of most countries rely on deficit support financial, people rely on borrowing ahead of the consumer, the formation of a vicious cycle of debt on debt. Finally, under the pressure of electoral politics, the capitalist countries tend to shift domestic political pressure to the external. Former French President Nicolas Sarkozy, to promote the Libyan war, largely focused on the domestic election in 2012. Former Japanese Prime Minister Yoshihiko Noda engage in so-called Diaoyu Islands "nationalization", largely due to the internal affairs of lackluster, hope to resist the pressure of the domestic opposition by outward display of a tough attitude.

Emerging market countries to go their own way

Students Yevgeny Avdo Kushan (director of the Centre of Asian Studies, Department of Economics of the University of Moscow, Russia): Once upon a time, Russia, India and other countries of Europe and America mode very hard, such as Russia Gaidar team is representative of, they do not depth, in particular, there is no real understanding of the Russian economy in real terms, which is distinct from China's distinctive features. China carried out economic reforms with its own characteristics. Russia is completely off-the-shelf copy the Western economic model and theory, the resulting predictable results.

FRONT IN (academician of the Chinese Academy of Social Sciences, Marxism Research Institute): India today is a big bourgeoisie dominated by the national bourgeoisie, the landlord class, the United Nations [microblogging] international financial capital of the workers, peasants and petty bourgeois capitalist countries in the development of class rule, is a special mixture of dominant capitalist system and the caste system, the sectarian system, the tribal system.

Politics, this is the West hailed as the world's "largest democracy", directly under the influence of neo-liberalism, the democratic system is by money and political challenges. Economic neo-liberal economic reforms, the India to get rid of the curse of "Hindu growth", but fall into the trap of the "free market". The government has relaxed restrictions on access to international financial capital and supervision of the domestic banking sector and other financial systems. Development of aggravation in the different regions, between different departments, urban and rural public input, the slow development of agriculture, increased polarization. And original Indian agricultural science and technology research and development and application of organization gradually multinationals from alternative and control. Venkatesh ・ Aspen Calabria Professor of the University of ElBaradei Dasang, India, a number of scholars believe that the people's livelihood, the big capitalists as beneficiaries of the neo-liberal economic reform, urban workers and urban elite and the middle and lower classes, and farmers accounted for more than 60% of India's population, the growing inequality in the distribution of wealth and income.

The problems of the Indian society today, the bourgeois conscience alone, the enthusiasm of the NGO, the conditional assistance of international organizations, scholars reflection, the awakening of the people can not be solved, India's urgent need for fundamental institutional change. Tata Academy of Social Sciences, 巴拉苏罗曼 reflection and said: "60 years after the founding of New China to India a lot to learn from the valuable experience, India's economic and social problems faced today, almost directly in China find a solution to the answer. "

Capitalism seeks to go beyond the "boundaries"

Ernst the Luo Aofu (the Germany "crisis" studio members): capitalism touched the "boundaries" of capitalism does not necessarily mean we should disintegrate and perish, but refers to the expansion of the capitalist system, generated through capital the basic purpose of the more capital can not continue to be maintained. Expansion of capitalism and the process of capital accumulation characterize the basic outlook of the history of the past 200 years, more and more labor is absorbed into the capitalist system to the formation of capital accumulation, this accumulation is bound to reach a critical point, so that the process can not continue and the emergence of a system failure. This failure means that the production of social stagnation and social viability subsided. These phenomena are currently in crisis countries. Therefore, the "boundaries" refers to this development logic, non-capitalist society will perish and the birth of a new social system.

Yevgeny of Avdo Kushan: the international financial crisis erupted in 2008 also, but not to conclude that the capitalist system would wither away, it is still alive, at least in 2030, do not die. Capitalism will make the appropriate changes will strengthen their social tendencies, such as the middle class will get a big development, the society will be more democratic, but to protect the interests of the monopoly capitalist countries this essence will not change.

Liming Jiang (Nanyang Technological University, Singapore S. Rajaratnam School of International Studies scholar): As an economic system, capitalism overall is effective. Multiple modes of capitalism, capitalism in the United States and Europe, capitalism within the EU are also different from each other, capitalism in Japan and Europe and the United States are also different. Capitalism can learn from the good things, such as the "small government, big market", but not blindly copy, it needs to be improved and amended.

Luis Gomez: capitalism and socialism, the two systems have a common ground, government regulation, but the proportion of government regulation. General capitalist countries to learn from the successful experience of socialism, is being developed to the direction of greater government intervention.

Reality tells us that liberalism and interventionism and so will not completely solve capitalism is inherently cyclical economic and institutional crisis. Future democratic government should not belong to the traditional liberal government, nor the neo-liberal government, the same will not be simple welfare system oriented government. I advocate to explore the establishment of a new democratic political system "strategy-oriented government" for the time being may be called, it is built on the basis of sustainable growth and consideration of the interests of the overwhelming majority of the people. In other words, through democratic universal suffrage a play "and" scientific and efficient government, long-term consideration and planning the future development of the country as a whole, and the interests of the people as a core reference system to measure effectiveness of policy implementation.

The next few decades the Western bold institutional reforms, including changes in the current neo-liberal management model, the blind expansion of the globalization process, and the operation of the political and economic system of the lack of effective intervention. A strategy-oriented government "is to understand the operation of the scientific processing and coordination of collective and individual, government and market a series of contradictions, and thus stimulate economic growth vigor. In this regard, China is a good reference and reference, and its advantages embodied in the perfect unity of the central government regulation and market-led regulation, to provide a reliable institutional guarantee orderly market competition and efficient allocation of resources.

Decline in social cohesion

Yuan Peng (China Contemporary International Relations, Assistant Dean, director of the Institute of American Studies): Western deepest problem is that it's social spirit level. For a long time, we thought that the American society is vibrant and cohesive, but in recent years, this conclusion should be some amendments.

American society has deep structural problems, including the rich and the poor contradictions, class contradictions, conflict inter-generational, regional conflicts and ethnic contradictions. These contradictions are neglected in the past, an important reason is that after the end of the Cold War, the United States enjoy the benefit of a superpower bonus, and not just concentrate on the internal restructuring and reform. 9.11 "has been busy fighting terrorism, busy with the change and deepening of the military system, security system and intelligence system, ignoring the economic system and social system, advancing with the times and recycling.

Charlie Beckett (London School of Economics, the media department head): the media scandal occurred this year, more than people recognize, is necessary to reflect on the "freedom of speech" under the capitalist system. Newspapers can not be all day, shouting "freedom of speech", at the same time make a shady dealings or distort the truth. British newspaper obvious partisan difficult for themselves, the pursuit of sales and profits, defend like inquire privacy acts. The media must make a tremendous change in the moment of their own high standards and strict requirements, in particular to comply with journalistic ethics.

Of Dieter Tommy (professor of philosophy at the University of St. Gallen, Switzerland): capitalism is eroding the family structure. Capitalism emphasized efforts to obtain the interests of the individual, the family is required for others to pay a lot. Today we feel that everyone should be the same as the capitalists, unrestricted, in order to work and work to maximize access to their own interests, profit-oriented. The capitalist way of life, penetrate into the life of the ordinary class people could let life better values to be marginalized, the family is placed in a secondary position, people communicate less and less.

Liming Jiang: the decline in moral standards in the West and ideological conservative tendency is mainly caused by globalization. On the trade front, the Western capitalist countries in recent years demand in Brazil, India and other emerging and developing countries to act in full accordance with international rules, and even more stringent requirements of these countries. Western religion and immigration has become more conservative. Globalization is the expansion of capitalism on a global scale, but also the external expansion of the capitalist system. Globalization interaction of various cultures impact each other, will have a lot of new thinking, new social customs and values, consciousness and not stereotypes.

Drag on the development of policy failures

Luis Gomez: one of the root causes of the financial crisis of the Western world is the "flower too much, borrowed too much." This is common with the Western countries "living beyond" consumer credit policy in advance not without relevance, this model is neither sustainable also completely worthless. Very easy to get credit in many Western countries, and fluctuations in the cyclical economic growth in these regions in the downlink channel, the lender of last resort, overwhelmed, could not pay the loan. It can be said, the policy mistakes expanding the face of the outbreak of the debt crisis.

Western welfare system itself obvious defects. By the aging of the population in the region on the one hand tired, the other hand, subject to the labor positions synchronization reduced. The same can not be ignored, when the savings and pension funds of the labor force market securitization package, as the crisis deepens, the welfare risk increases sharply. Has happened in some countries, for example the issue of pensions is shrinking and the outbreak of the crisis. Western if you want to jump out of the welfare system traps ", in addition to gradually attract capital into the real economy, and increase technological innovation and institutional change, no other method. Investment in the field of education and scientific research and breakthroughs should never be slack, these should be the greatest source to find solutions to the problems on the path of development of industrial production and services industry. Only economic growth have strong real economic foundation for the support, but also in order to effectively protect the supply of jobs, then jump out of the welfare trap.

Liming Jiang: Western welfare system also accelerated the outbreak of the crisis. Workers in the developed countries provide high welfare and security of life, unwilling to accept low-paying jobs, and handed over to workers in developing countries to do more dirty and more tired of the job. "Wage rigidity" labor costs of the welfare state can only rise not fall, government support can not afford welfare spending, more and more people on institutional dissatisfied.

Feliz Navidad: Skywalk buskers and givers ‘wish you a Merry Christmas’


A significant decrease in Monday morning foot traffic throughout the skywalk did not stifle the spreading of holiday cheer Christmas Eve Day.
Gifts from Skywalk Santa were spotted in some halls as early as 5 and 6 a.m. – blankets, sweaters, jackets and candy – and smiling Christmas wishes from busking musicians filled others late into the morning.
The spirit of generosity seemed to be contagious, as some vendors were even giving away Christmas goodies like cookies and sweets.
Here’s to a Feliz Navidad and a happy New Year in Des Moines.

Merry Christmas: US Air Force tracks Santa for kids

Volunteers at aUS Air Force base monitoring maps showingSanta Claus' progress were several hours into their goodwill mission and had answered more than 24,000 phone calls from children wanting to know everything from Saint Nick's age to how reindeer fly.

Oh, and when are the presents coming?

Phones were ringing nonstop at Peterson Air Force Base, headquarters of the North American Aerospace Command's annual Santa-tracking operation.

Dozens of helpers at NORAD were tracking Santa's location on large projection screens. They're posting updates for nearly 1.2 million Facebook fans and 104,000 Twitter followers.

The maps showed Santa was in Pakistan and heading west. He had delivered more than 2 billion presents so far, according to the "NORAD Tracks Santa" website.

NORAD, a joint US-Canada command responsible for protecting the skies over both nations, says its Santa-tracking rite was born of a humble typo in a newspaper ad in 1955.

The ad in a Colorado Springs newspaper invited children to call Santa but inadvertently listed the phone number for the Continental Air Defense Command, NORAD's predecessor, also based in Colorado Springs.

CONAD officers played along, and word spread that this Cold War military command charged with guarding the U.S. against an attack by the Soviet Union was also telling kids where Santa was.

Since then, NORAD Tracks Santa has gone global, progressing through bulletins on AM radios and black-and-white TVs to updates on Facebook, Twitter and smartphone aps.

Last year, volunteers answered almost 102,000 calls, nearly 25 per cent more than the previous year. They also answered more than 7,700 emails (noradtrackssanta(at)outlook.com).

The NORAD Tracks Santa website attracted 18.9 million unique visitors from 220 countries and territories during December 2011.

This year, the program had more than 1 million likes on Facebook and nearly 97,000 followers on Twitter days before the tracking operation got under way.

"How old is Santa?" one caller asked. The answer to that one is in the FAQs that NORAD handsout to volunteers: "It's hard to know for sure, but NORAD intelligence indicates Santa is at least 16 centuries old."

Other questions required the volunteers to think fast:

"How do reindeer fly?"

"How many elves does Santa have?"

"Does Santa leave presents for dogs?"

One little boy phoned in to ask what time Santa delivered toys to heaven, said volunteer Jennifer Eckels, who took the call. The boy's mother got on the line to explain that his sister had died this year.

"I think Santa headed there first," Eckels told him.

NORAD suggested that its volunteers tell callers that Santa won't drop off the presents until all the kids in the home are asleep. The response depends on the caller's age.

"Ohhhhhhh," said an 8-year-old, as if trying to digest a brand-new fact.

"Thank you so much for that information," said a grateful mom.

Credit Suisse boarded the top of the U.S. stocks IPO underwriting standings

Underwriting amounted to $ 4.7 billion in 2012

Data recently released by the investment banking research institutions Diluo Ji (Dealogic), Credit Suisse (Credit Suisse) debut in 2012 the U.S. stocks IPO underwriting topped the list. Thomson Reuters Statistics show that the 2012 Credit Suisse in the U.S. stock market underwriting 41 single IPO business, underwriting amounted to $ 4.7 billion. Last year, Credit Suisse, only $ 2.8 billion in underwriting amount ranked underwriting rankings eighth.

Said David Hermer, head of Credit Suisse general manager and equity capital markets in the Americas, Credit Suisse not only focus on winning transactions but also to be listed companies to provide views on the positioning and valuation. "Our underwriting the IPO stock seven days after the initial public offering, 30 days, and the year-to-date performance can prove that the performance of the stock in the secondary market after the initial public offering on the set of the company's future is very important. "he added.

In fact, as one of the nine Facebook IPO underwriters, Credit Suisse seems the above assertion should have reservations. Facebook last week, the stock closed at $ 26.26 / share, compared to the initial public offering of $ 38 / share price has fallen by nearly 30%.

However, Credit Suisse, the second largest in the U.S. market IPO underwriting transactions - real estate agency Realogy performance is quite gratifying. In the last month, Credit Suisse and Goldman Sachs, JP Morgan, Barclays shared Realogy 12 billion dollars in IPO underwriting the issue price of 27 U.S. dollars / share, Realogy shares closed last week at $ 41.32 / share, or more than 50%.

Credit Suisse this year is in full swing preparing for the expansion of its equity capital markets business, at the same time, but its competitors have cut the business. Royal Bank of Scotland (RBS) earlier this year announced the exit of the equity capital markets business, Nomura Securities also closed its European equity capital markets business.

Sunday, December 23, 2012

Google acquisition of Motorola mobile costs only $ 1.5 billion

We all know that Google acquisition of Motorola mobile spent $ 12.5 billion last year, but if we went to see the deal in more depth, you will find Google actually paid "net cost" may have only $ 1.5 billion. At this price, is a company holding the patent Motorola moves to win, is a great value for the sale to Google.

US $ 1.5 billion is how to work out the cost of it?

First of all, let us look at Google recently announced a deal. On December 19, 2012 and Arris company Google announced the signing of a sales agreement, Google price Motorola home business sector of us $ 2.3 billion sale to the latter, the deal included more than 2 billion dollars in cash and another $ 300 million Arris shares.

Transaction result is Google owns 15.7% shares of Arris the broadband technology company and US $ 2 billion in cash.

Through the deal, Google returns a portion of the funds.

Another fact to consider is that Motorola mobile accumulated tax losses, which made little sense for Motorola, because they can't make money now to offset these losses, but it won't be the same for Google. We all know that Google can tax credits to make a fortune.

Corporate tax expert Robert Willens: "through the tax benefits associated with the transaction, thereby giving a good deal becomes more valuable. "

He expects, through this transaction, in 2019 years ago Google annual income of US $ 700 million through tax cut of future profits. At the same time, Motorola mobile in the United States and overseas are in operating loss, so Google can also receive US $ 1 billion and US $ 700 million in tax breaks.

If the purchase price of us $ 12.5 billion minus the tax receipts from Arris and so much access to cash and stock, Google to buy Motorola deal price actually paid only $ 1.5 billion

Obama's new deal surprised Japan a cold sweat

Mr Obama, will continue its monetary easing policy, continue to operate the printing press. This bond has become astronomical Japan worried.

Results of a survey released on Monday showed that Japan government bond market sentiment index is gradually deteriorating due to market fears over Japan after taking office the new Government will take more aggressive monetary and fiscal stimulus measures and lead to lower bond yields sharply.

Survey results show that weekly statistics of Japan Government Bond Index this week fell to-6, last week, the value will be 0, indicate that market confidence in the bonds is deteriorating.

Japan media coverage and, more recently, United States President Barack Obama was elected, Japan had surprised a cold sweat. This is why? Because Mr Obama, will continue its monetary easing policy after the election. Pop said, is to continue to operate the printing press. This bond has become astronomical Japan worried.

Not long ago, Japan a joke widely circulated in the media. Say Kyoto University Professor Shinya Yamanaka in 2012 years Nobel Prize in Physiology Prize, I do not know him after the award, did ask a laureate and award-winning--United States Denis Irwin-Ross and Dan Aykroyd-Xia Puli: United States ready to help Japan solve the national debt problem.

Japan media that ridicule is a reason. The Nobel economics prize on October 15, Japan Government began to deliver up to 722.6 billion yen of "personal treasuries." Received the Japan people long-breathed a sigh of relief, and debt-laden Japan almost no background washed out to the Government. But for the hard start the printing presses, constantly issuing new debt, Japan governments these days have credit went bankrupt.

Japan most financial experts believe that Japan happen, largely due to the "United States big brother".

Japan believes that the history of senior financial sector cane volumes and health, debt crisis on Japan caused by impact, than the second world war. Japan's social structure, values, policies and systems have been flattened by massive debts have distorted, now in Japan if not reinvent, it's hard to have hope.

Cane volumes say is justified. Japan's total debt has now reached 219% per cent of GDP, than European debt crisis of Greece, and Italy and other countries also scary. More terrible is that United States has begun to assist the European States to reduce huge debts, Japan's debt has no interest, and grow at a rate of ten trillion yen a year.

Not long ago, Japan government bonds is very popular with overseas investors "favor", being bought in large quantities in the international market, Japan Government is be happy for quite some time. But a survey report issued by the Agency, but Japan Government cool to feet from scratch.

It turns out that Japan government bonds and therefore was a lot of buying in the short term, because it has become the international financial speculators to bet against the "chips", which is synonymous with junk bonds. Once the speculators to profit off, Japan government bond values will crash more than, beyond redemption.

Not only that, bonds plunge Japan stock market, foreign exchange market, real estate market volume came in, the direct result will be Japan finance bankrupt, government agencies are closed. Japan is sad, the great majority of speculators and United States financial institutions close to the Government.

To prevent debt bankruptcy, Japan Government has modified article 5th of the Finance Act, forcing Japan's Central Bank to buy bonds, and let the printing presses at full throttle. But this is to prevent government departments and halt such as fire engines, ambulances, to maintain the most basic of social functioning. Japan Government it is clear that urgent measures have been normalized.

However, Japan financial experts have pointed out that, in the shrinking domestic demand, exports by Sino-Japanese relations deteriorated sharply reduce cases, Japan is still like thirst, only make Treasury bonds became worthless. Final result is prices, Japan printing presses again go down, I'm afraid the taxi starting price is 1 million yen is also possible.

Japan Government and private research institutions from the "formula" in the devaluation of the Japanese Yen was one of the most effective ways. After the devaluation of the Japanese yen, Japan enterprises to enhance competitiveness in the international market, employment increased economic good investor Japan confidence will also enable them to long-term holding of bonds.

However, this can only be a good blueprint. "The United States big brother" in the case of zishennanbao, are adding horse power operate printing presses. As a "little brother" Japan, banknote printing cannot and dare not more quickly than United States. Dollars more and more on the market, Yen with close ties have "appreciation".

In this way, Japan resolve the sovereign debt crisis the most effective solutions, and has also been blocked. Combined with United States military action at a time, Japan has to cut out hard money, which is causing Japan bonds indicates tired of important reasons. As in cane volumes and health history said, Japan's many crises, in a sense, is in the United States "lick ass" sovereign debt crisis is no exception.

Way to the survival of small businesses and small business owners

There is a story. A lion and a tiger, not knowing how to engage in a fight. Eventually, the two animals have been dying. At this time, the tiger lion said: "If you want to infringe on my site, we would not fall to such a fate." Said the Lion: "ah! I never want to invade your" tiger said: "I always wanted to, you certainly would violate me."

This is a do not look funny but thought-provoking story. The situation is the same in the business community, in order to compete for the market, in order to make the results of operations of the enterprise can improve, entrepreneurs are must try every means. In this situation, the the inevitable intense competition between enterprises. Large enterprises is also easy to survive in this environment, the bosses of small companies may not better. How to do? Small companies to do the planning and programming.

I remember that Napoleon said, he very carefully, very detailed war plans to write out to fight every battle, every war is not in accordance with his original plan to play. Someone would say: "Since the plan is very detailed, but not according to plan to do, then why do plan to do?" Napoleon said: "because the war is uncertain, fickle, so there is no way to control." That How to do it? He said: "only be able to control is the plan. First intend how war plan, and then follow this plan, this strategy do actually like, only quake, there is no other way." The key to success is Napoleon. In addition to the planned, Drucker also talked about planning. What is the plan? The plan is I'm going to Hawaii. What is the plan? I must take the time to arrange the flower budget with who conceived of the whole trip in detail write it, is called planning.

I remember former U.S. President General Dwight Eisenhower famously I'm impressed, A. Plan is nothing, planning is everything. "Means that it is necessary to plan, but also to planning. No plans, necessary to the working poor; plan, will not busy. Planning before action, the action will likely effect the outcome. If you do nothing, of course, on what can possibly have.

Many companies in charge of people have asked me: "our small company of only a few dozen individuals, you called, I do plan to do the planning, these things are big companies should do just the opposite. Drucker believes that large companies need to do the plan, planning, and small companies as well, even small companies to do the planning and programming. Someone asked him why is this it? He said: "Because of the small size of the company, human resources and other resources are very scarce, if you do not know how best to use only a small amount of resources, then how to do things it? How to obtain the performance of it? Impossible." Drew grams, said: "For a small company, even if only one store, plans and programs must be done." But I've seen those small companies, they are almost never done plans and programs, which surprised me. Why is it so? Why the person in charge of these small companies have no plans and programs?

The person in charge of these companies are very busy every day, they are busy with what? I asked if they have no plans, they say: "I just want to make money," I said: "If money is your plan, then you certainly can not make any money. More you want to make money, the more impossible to make money. "He said:" You tell me, how do I do that will do a better job. "I said:" People are the two legs, RMB four legs, you'll never run, but it you chase also fail to recover, chasing vain. then how to do? what you must be thinking, how can you let the money go into your pocket, rather than you chase after it. "This is a very important concept, and the concept from planning to planning, from the strategic to the tactical.

You do not spend all day pulling carts buried, he never looked up, and even the road are not sure where. Why the rise of? Do you want to see the map ah! A city where you're going, you always have to look at the time, look at the train schedule. Have to look at the time you fly, and know that in the end a few fly only way to arrange your trip. This is the plan, is very simple. If you want a little more in-depth course to do the planning. Plan or planning or management are in fact, the management is precisely in the construction of a comprehensive, overall operating mechanism. Must always think about the operational mechanism, consider the direction of thinking must consider'd never look within to see from the outside. Never look at now, is the first to consider what might happen in the future, look at what should be done now; within to see from the outside, from the customer's point of view, from the point of view of the market to look at their own business, thinking enterprises should do.