Simone Wapler – La Chronique Agora (France) –
Capitalism is a myth. Savings and capital exist, on the other hand, but they are misguided and drowned in monetary creation.
“Capitalism does not exist. It’s an out-of- print fiction armed with socialist rhetoric , “said Michel Leter, an author who had disappeared from Capital too soon . The invention of capitalism .
The current low level of interest rates despite existing indebtedness and the pitiful efforts of the current government’s “saving arrows” support this idea.
Michel Leter’s book, however, was less successful than Le Capital de Marx or Piketty’s highly indigestible pavé, Capital in the 21st Century.
In our textbooks, we generally learn that capital is “a sum of investments used to make a profit, that is to say a stock of goods or wealth necessary for a production”. “Sum”, “stock”, “investment”: we are in the big, a scale that exceeds that of the individual.
For Michel Leter, heir to the liberalism of the nineteenth century, the capital of each is made up of tools and knowledge. These tools and this knowledge are inherited from the past, accumulated and forged by each individual who decides to postpone immediate consumption.
For example, Gérard Cromagnon decides to sleep less and not to participate in the big feast of the cave that lasts two days to make a fire-hardened spear, longer and whose flint is carefully cut according to a model that he comes to imagine. Thus, he will be more successful in hunting, he thinks.
Bingo! Gérard Cromagnon becomes the best killer of bison thanks to his new model of super sharpened lance. That’s the capital at work.
Those who took part in the big celebration of the cave also want Gérard Cromagnon’s share of hunting loot. Did not he enjoy the music of the big cave festival while working on his new equipment? He has a debt towards society … Here are the opponents of capital at work.
“Capital is not an accident of history that arises from the brutal establishment of a system called capitalism but the very foundation of this anthropology elaborated by the French School of Economics in the 18th and 19th centuries. summed up by this luminous formula of Yves Guyot: Capital is man.
Capitalism is not an economic system but a myth whose function is to blame liberalism for the evils caused by socialism. “
Michel Leter, speech of December 16, 2015
Today the most primitive form of capitalism is monetary savings.
This savings can then be aggregated to allow ambitious investments. It was the role of the banks: to collect money from individuals to invest in big gourmet projects. In today’s jargon, we speak of “intermediated” savings.
To attract savings – this money freely subtracted by each of its consumption – banks pay interest.
In theory, money, like meat, salt or wheat, follows the law of supply and demand. The more there is, the less expensive it is and the less expensive it is.
So the more savings available, the lower the rates and vice versa.
But it is without counting the interventionism, the creditism and the currency “created from nothing” that make the bankers arise to compete with the savings and to devalue it.
This explains, for example, the development of credit consumption and the curse of debt. What is the point of saving for a project, if the money set aside does not yield anything (or rather, yields only tax bills)? And as interest rates are so low to borrow.
Entire parts of our modern economies rely only on credit consumption. Hence the need to inflate this credit bubble (and therefore the debts) to avoid a recession that would be a return to reason.
While we are in a period of peace, the level of US debt will soon reach that of the Second World War …
Our government claims to swear by the companies, the start-ups that would be the key to our growth – which is also true since only the private sector is able to earn money.
He wants to “redirect our savings” and MP Amélie de Montchalin is in charge of this commission.
Do you think that Amélie de Montchalin is interested in start-ups in participative finance? Because, miracle internet, intermediaries now offer investors to subscribe directly to business loans or their capital. You can choose companies, projects close to the real economy and generators of real growth.
Instead of providing tax breaks and giving savers the initiative, the government will oversee the creation of new “intermediated” products marketed by banks and insurers.That nay. In the good tradition of collectivism and French dirigiste, Amélie de Montchalin turned first to intermediaries, banks and insurers. It must be said that his professional experience took place at BNP Paribas and then at the insurer Axa.
This Macron government is not liberal. He is as statist and technocratic as the others. He despises the savings and the faculty of discernment of individuals. He prefers the ways of servitude. This intermediary “capitalism” will kill capital.