Yes, They Are Communists

The delightfully salacious political news lately has been the ‘Occupy’ movements around the world. Shout Bits has visited the Denver, CO rallies and can confirm one part of the Old Time Media reports – yes, they smell brutally offensive with BO. But the OTM is willfully ignoring another obvious fact – these protesters are of the same cloth as the communists that sought to revolutionize the US in the late 1960′s and early 1970′s. Their message is violence and repression, not some sort of peace and love.

Anyone who did not live through the 1968 Chicago DNC should read Dupes by Paul Kengor. In it, he combines commonly understood cold war history with later released KGB files to expose organizations such as trade unions, academic luminaries, and student anti-war organizations as indeed infiltrated by communists who took direct orders and funding from Moscow. Just as Sen. McCarthy suspected, the State Department did have communist agents occupying high positions of authority. 1960′s radical groups like SDS and the Weather Underground were in fact run by violent communists.

One of the interesting twists of revolutions is that they usually feed on their own. The 1960′s radical movement peaked under the far left President that gave the nation Medicare and the War on Poverty. Giving revolutionaries what the logically should want only emboldens them to pursue their ultimate end – in this case the abolition of private property and the dictatorship of the proletariat (i.e. communism). While Pres. Obama is a socialist from the European mold, the ‘Occupy’ troops clearly want more.

Goofy Message


Scary Messages
(side note: Deep Green Resistance is a communist organization that “believes that civilization, and especially industrial civilization, is fundamentally unsustainable and must be actively dismantled in order to secure a livable future for all species on the planet”)

Listen to the words of the protesters and consider their tactics; the OTM likes to pretend that these people do not have specific messages or demands, but they do. Democrats like Rep. Pelosi and Pres. Obama are seeking to align themselves with these groups to gain from their activism, but the message on the street is very different from the one filtered by the OTM. The street crowds want an end to capitalism and the current government as we know it; they do not want reform, they want revolution. They want corporations abolished and wealth redistributed. Socialism seeks to contain capitalist spirits, while communism seeks to abolish capitalism altogether. The ‘Occupy’ movement is communist.

But didn’t communism end with Sen. McCarthy, or the Chicago DNC, or at least with the Berlin Wall? Without funding and direction from Moscow, how could communism survive? Communism did not die, rather 1960′s communist radicals hid their stripes and turned to academia. Bernadine Dohrn, communist murderer, escaped the FBI’s top ten list and became a law professor at Northwestern University. Communist Noam Chomsky (self-described Anarchist, but truly a communist) was already an academic in the 1960′s, and after encircling the Pentagon completed his career at MIT. Communist terrorist Bill Ayers somehow escaped the death penalty and went on to be a professor at the University of Illinois (and a friend of Barak Obama). Communist terrorist Michael Klonsky also became a University of Illinois professor. Communist terrorist and ‘Che’ Guevara acolyte Mark Rudd fled the FBI in the 1970′s, but later taught math at Albuquerque Votech. The list goes on, but communists and their sympathizers escaped to academia where they have bread a new generation of useful idiots for their cause. The preponderance of college hippies at the marches shows that Marxism and communism are alive and well at the ivory towers.

Even though communism promised race equality, it produced horrific ethnic cleansing in places like China and Kazakhstan. Even though communists claim to be for free speech and assembly, only capitalist nations allow such rights. Even though communists call themselves democratic, the only tool of communist expansion is violence. Communists promise wealth equity, but they simply deliver poverty and starvation on a scale that has killed 100 million people or more. The promise of peace is met with the reality of genocide. The OTM should stop carrying water for the communists who are driving the ‘Occupy’ movement. Voters should recognize the protesters’ message and tactics as those of the 1960s’ radicals that sought the violent overthrow of the US, and ask why prominent politicians are aligning with these dangerous people. It only takes a little moral clarity to understand that the ‘Occupy’ protesters do not represent any traditional US value or aspiration.

Everything I Learned In MBA School Was Wrong

To some, a MBA is a yardstick of business acumen or a launch pad for great accomplishments. While graduate students are expected to exercise increased independent and critical thought, the amount of leftist indoctrination that goes unchallenged is startling. In nearly every department, the MBA curriculum has got it wrong.

Keynesianism:

MBA programs teach that government spending and expansive monetary policy stimulates GDP expansion. Keynesian formulas suggest that recessions can be cured by stimulus spending and money supply growth. Stimulus ‘primes the pump’ of the economy. Well, no, stimulus has never worked, but MBA professors fail to mention this, as they also fail to mention other economists like Hayek, Taylor, and Hazlitt whose theories refute Keynes.

Keynesian stimulus does not work for two real world reasons: 1. When the government stimulates, it almost always procures things nobody needs or wants. The government spends based on political favoritism, and those items are unlikely to stimulate further productive economic activity (e.g. bridge to nowhere); and 2. People don’t measure their wellbeing by GDP growth, they measure their wellbeing by prosperity. The fact that Pres. Obama’s stimulus grew the public sector component of GDP did nothing for regular Americans. People do not really want more money; they really want things like food, houses, cars, and TVs. Stimulus is largely busywork that creates nothing, especially in the short term, to increase real prosperity. Paul Krugman’s recent ludicrous endorsement of government spending on alien invasion preparedness as a way to grow the economy is the perfect example of Keynesianism’s fatal flaw.

Currency Devaluation:

MBA programs teach the IMF mantra that when a country has a trade deficit, or it can’t pay its obligations, it should devalue its currency. The theory posits that after a devaluation, the troubled country’s exports will be more competitive, imports less competitive, and soverign debt more affordable. As Argentina and every other test case has shown, this never works. MBA professors cite a ‘J-Curve’ effect whereby devaluation causes the opposite of its stated goals in the short term, but as consumption and production shift, the devalued economy will reach a balance. The J-Curve must take a long time, because devalued economies continue to suffer for a long time.

Devaluation does not work because, as with Keynes, people do not want money, they want goods. No magic wand increases the real efficiency of a labor force. Further, when a government inflates its currency (devaluation), it makes foreign capital formation less attractive. Without capital formation, modern economies cannot grow, and real prosperity becomes impossible. Currency devaluations are just a form of surprise inflation, which is stealing from those who save to pay off government debt. Only an ivory tower academic can think that is the path to prosperity.

Union Management Partnerships:

MBA academics are big on labor partnerships. True to their socialist instincts, they can’t believe that unions are bad for business. They laud each effort to find a new way to harmonize union and shareholder interests. In the real world, these partnerships never work. UAL gave its unions ownership and board seats, and GM’s Saturn division gave unions decision authorities, but both of these experiments failed, resulting in bankruptcy. The steadily declining private sector union ranks prove that unions cause business failure wherever they take root, otherwise businesses would be inviting unions to form and their ranks would be growing. There is no aligning union and shareholder objectives; shareholders seek to avoid Ch. 11 bankruptcy at all costs, while unions see Ch. 11 as at most a temporary setback.

Efficient Market Hypothesis:

MBA professors hate Wall Street traders because academics think that what they do is impossible. The religion of MBA finance professors is that the markets are efficient (i.e. their prices always reflect true value and that without inside information nobody can make a supernormal profit). Securities’ prices fall along a line that sets their price relative to their risk, so stock picking is a waste of time.

Shout Bits apologizes for the following obscure references, but every assumption underlying the efficient market hypothesis is wrong. Investors are not objectively rational; their decisions are based on needs other than risk adjusted return. Stocks’ returns are not a random walk; returns are auto-correlated. Stock returns’ correlations are not constant; in times of extreme gains or losses, correlations increase. Likewise, betas are not constant and are difficult to predict. Every foundation of the efficient market hypothesis is bunk. The efficient market hypothesis is a classic example of MBA professors living within their walls of assumptions and formulas while those less constrained by theory make a killing.

The list of MBA fallacies goes on (e.g. more regulation creates more safety, the green movement and its economy, strategic reorganization creates value, Japan’s model of government / private partnerships). Of course a lot of smart people earn their MBAs, but they would have been smart without them. As with liberal arts BAs, the hidden price for expanding minds at an MBA program is the indoctrination into left wing and academic fantasies that have no use in the real world. The best business education is getting one’s teeth kicked in by tough competitors who know their trade and know how to win. That is a lesson that no MBA program can teach.

A Shockingly Ill Conceived Idea pt. II

As ShoutBits reported nine months ago, some Congressmen want to unleash an unaccountable tyrant on investors in the form an autonomous SEC. Today the New York Times has reported that, surprise, a bunch of trial lawyers are pushing this idea as hard as they can. This bill must not become law if the US is to continue to be the place where people raise capital and grow commerce.

The lawyers argue that SEC is under the capricious power of Congress to set its budget, and therefore it cannot perform its duties. If the SEC were to self-fund with the fines and fees it collects, it would better police the financial markets, implying that Congress is corrupt and too cozy with Wall Street. As officers of the law, these lawyers should know that it is Congress’s Constitutional duty to decide how public money is spent and that creating unaccountable bulldogs is not legal.

Why do a bunch of securities lawyers want the new law, and why is the NYT blog sympathizing with them? A renegade SEC that sues everyone in sight to pay its bills is the perfect partner for trial lawyers. These trial lawyers would end up doing much of the SECs work – researching and suing every security broker that makes even the slightest mistake – and earning big fees for doing so. With the SEC incented to prosecute every minor case that now is settled through cooperation, trial lawyer’s billable hours will skyrocket.

Lawyers corrupting the Federal Government to weasel more damages from business? That is business as usual. After all, Obamacare does nothing to reign in frivolous lawsuits, not even one page out of 2,600. Sarbanes-Oxley did nothing to prevent the destructive excesses of Fannie Mae, but it created a legion of new lawyers and CPAs devoted to the new regulations. Nearly every new law is an employment bill for the trial lawyers who own the Democratic Party, and Sen. Schumer’s autonomous SEC bill is no different.