Ratings, Economics, Financial Systems and Exposure

Before the not so distant economic disaster that saw the collapse of several banks, the credit ratings companies that are meant to signal impending changes were noticeable in that they saw absolutely nothing going wrong in the free market controlled land of western finance and banking.

Throughout their history the credit ratings companies have been quick to downgrade any state that was making even the smallest move towards social programs that could assist the position of the people that meant some debt. And yet through the soaring debt the US used to fund wars of choice and aggression without raising tax to support them the credit agencies turned a blind eye. They turned a blind eye as the biggest debt of all was built just to kill people. And not even conventional wisdom that you can’t have war without raising tax was noticed.

Again today we see the active credit ratings companies turn their attention to countries suffering economic hardship and with social programs to try to relieve this. Ratings are downgraded making it even harder for the country to borrow and effectively meaning any social program to assist people will have to go.

Now how do companies regarded as the guardians of the financial system manage to quickly see some things that need adjustment while overlooking the bigger ones and missing a complete recession? If we were to believe free market economics works these utterly useless and failed institutions of ratings would be gone in an instant as their legendary inefficacy is open to all to see and their record of getting anything right is close to zero. However, if anyone believes that free market economics even exists let alone works they are seriously challenged on the cerebral sense or at least succumbing to intense propaganda if we are to be less extreme.

The free market is a myth. It is a market that the institutions and structures of control in the economic and financial sphere manipulate, control and play with until eventually they lose control of it, and then all of us have to pay. At that point of weakness for them there is always some contrition and they, who caused the whole mess in the first place, will sort it out for themsleves and their allied controllers in the government will both intervene to save and allow blame to be shifted to the government rather than the myth like free market with its equally myth like invisible hands that regulate automatically. No, the invisible hands are the ones playing the games purely for their own benefits and no invisible hand that adjusts the markets to keep it balanced exists. This has been shown repeatedly and yet the myth is still taught in the academic institutions of mind ocntrol. What is described as a free market economy is a warped and totally exploitive concept designed to confuse, enslave and at the same time drag in the ordinary person adding to their state of confusion and frustration.

The intervention of government and the shifting of blame to them also enables several other reinforcements to the system and the self propagation of the institutes and structures of control. When blame shifts to government the automatic self-preservation of the system activates as in democracies people get a chance to punish the government and in non-democracies democracy can be pushed. The people do not have the opportunity to punish other institutions so the shifting of blame becomes paramount to protect and continue the self-perpetuation of the system as a whole. The government arm is a valve. Similarly when a government is not working efficiently within the guidelines of the system blame must also fall on such governments so they can be changed to one that better suits the system. We get a glimpse of this in the so-called socialist governments of Greece and Portugal being targeted by the credit ratings agencies while governments more suited to the system in the USA while raking up far worse and potentially more ruinous levels of debt get a free rein. In the end the self perpetuation and preservation nature of the system are completely exposed for all to see. However, hiding in the open it seems is not as difficult as it may appear on paper.

So while as confusionists we don’t want to get into defending such institutions of control as certain governments, the contradiction within the controlling powers, and as contradictions are natural and unavoidable, give us a glimpse of the true nature of another institution trying to hide behind the curtains of confusion. In this case the exposed institution is the credit ratings agency. Its purpose purely to, within the artificially created economic system, make sure that the interests of the dominant, in this case free market or Anglo-Saxon model, group are protected by intervening only to protect this ideal and this group and intervening to damage any challenge even from within the power groups to this hegemony. For now this system is sustainable as even if we recognise it, and for the sake of our own human condition we should recognize it, there is little that can be done. However, with the rise of a new role model the hegemony may well pass between the powerful groups as is the nature of political and economic change. At this point of clash there may be opportunities for communities to renegotiate their relationship within the system and opportunities that may even if seized give some further advantage to us as ordinary people.

However, for us as confusionists the point now while not fixating on what the controlling groups and blocks do, is to just recognize them for what they are and maybe even at times such as this when they expose themselves gently point out to others this exposure.

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