I enjoyed the film, my short emotional review is on IMDb.

www.youtube.com/watch?v=WAyCi4cObmI

I duly recommend for you to read (at least some sections of) the book NO LOGO, as a kick-starter for thinking. This thinking has propelled me back to my schooling years of Economics. Of course, the current crisis is to blame too.

Well, most of what I have studied earning the regalia is BS. Not that it is of Bachelor of Science level. It is crap. Crap was at Novosibirsk University when I studied Marxism. Crap was further down the line when I studied Free Markets. An exciting year in Prague, and much less exciting years at U of Md.

Why crap? Because neither of the “theories”, be it Marxism or Free Markets, explain what is happening now (well, the former does a better job at attaching the blame though but the latter shows how organized structures can inflict damage).

What does a better job is political economy. Even more precise - economic politics. Isn’t it interesting that among 100 largest economies only 49 are countries? That means that corporations (and “economics”) have basically overtaken, well, everything, including politics. Marx was right saying the foundation of everything is the economy.

Politics do not really matter, what matters is the economic context! Western “powers” are angry at Russia. Why? Because those powers are not countries. Countries do not matter. Western corporations are angry! Why? Because they have to pay high prices for energy and they didn’t succeed in taking over the oil fields or controlling the prices.

Economics has overtaken politics. Back in the 30s of the 20th century it was politics. Now it is economics. Uber-corporations, not uber-states, are causing damage.

Take the latest crisis. (Did you see these videos, btw? — 1 and 2 — nice wrap-up of the crisis roots.) Why did it all happen? Really? How could rational parties have run so amok? Because the companies are SO BIG now. Because the few BIGGIES have decided to make money but they (as did Germany and Co. in the late 40ies) failed after a decade of spectacular demarch.

But back to the topic. BS Economics. When I was writing my PhD thesis, it was the beginning of this century. I chose the topic of the late 90s in Russia: barter. I was astounded at 54% non-monetary trade back then (I was also one of the implementors of a large survey of companies which helped to research this finding and come to many other interesting conclusions). And you know what Western (mostly economic) press was saying back then? Like Gaddy (now a big politician) and Ickes? When all of Russia was screaming “more liquidity”? It’s not liquidity, you stupid Russians!  You could have of it as much as you want. But it’s your own fault, Russia, you just don’t want to be efficient.

Russia, you are basically … destroying value (except for oil and gas)!

Setting the efficiency arguments aside, it is interesting to see the debate in the US now, when the economy in the US is not in a good shape. LIQUIDITY is THE argument! Whilst I support this view, I shall also encourage this — a Gaddy and Ickes argument: there is so much value destruction in the US economy due to INEFFICIENT ALLOCATION of credit that (taking their logic ad absurdum) it would be good to have the financial institutions die. “Because liquidity doesn’t matter” (”because prices will adjust and mv = money in circulation will always equal pq = GDP”). Or it does? Or the financial institutions are actually efficient and not value destroying?

That’s what confusing the East when the West is speaking: why so double standards?

But it is not double standards. It is the corporate power which is quite soulless. Everywhere, here in Russia and there in the US. Short term profit for a few biggies is the end in itself. Literally.