Peter Staněk – Global Crisis and Controlled Society [english subtitles]

The first issue, a fundamental and polemical one:
are we really discussing the causes of crisis? do we have any idea about what civilization model it is? chinese? south american? european? american? or is it something president obama formulated into one neat thesis at his first meeting with the world’s elites: “power elites of the world, unite!” remember his meeting with the elites of individual countries. second issue: who uses the state to shield his own interests but other than that has no need for it? third issue: what is the real cause of the crisis? virtualization of the financial sector?
speculations and profit-chasing? or is the real cause what we call fundamental shift in structure of polarization of society? as long as 1% of population hold
30% of wealth produced by society, as long as 3% hold 70% and
as long as 5% hold 90% of it, what civilization model are we talking? is it american? south american?
chinese? which one? if we’re not talking about
the role of polarization in society with global consumption and if we are not solving this problem,
we have to ask: why does the crisis take so long,
why do we see it as systemic, why do we see it as civilization-related
and the fundamental question: where is ethics and morality in this fucked-up society? gone. because the fetish of profit
is really prevalent, at all costs, under all conditions. if the profit fetish is present, and if profit is immanent
to capitalism, which it is, then what civilization model
do you want to call “different” if it doesn’t rely on the profit principle? that inevitably brings up the next question: events are random, events are used as a smokescreen to cover something else, and what is the “something else” behind the smokescreen? grasped pragmatically:
it started as a mortgage crisis, turned into banking crisis,
then to debt crisis, then to fiscal crisis,
the fiscal crisis is now becoming the global consumption crisis,
that is the real issue today. this will turn into the crisis of
overabundance of production capacities, remember the debate: 40% of
automotive industry is now useless, and i’m not talking about engineering,
chemical or pharma industry etc. what inevitably comes next is so called
optimization of production capacities and this will be followed by
the maximum rise of unemployment where the issue will not be your wage,
but rather if you have a job or not. don’t forget the 700 million
job seekers in the next 20 years who will come from where?
the arabic countries. not china, not south america.
not europe, not usa. this means a rise of series of huge
asymmetries around the planet. i won’t talk about information asymmetry
and energy asymmetry, but the asymmetry of wealth distribution. next inevitable question comes up: are we talking
homogenous society in europe, usa, japan, china etc, or are we considering totally
structured society with power elites, a huge mass that doesn’t care to be
informed and works on the farm principle? aren’t you terrified that 1.5 million people are watching the farm?
i mean the demented tv show [big btother style] this is a big hint as to what’s ahead of us. next inevitable question: are you in a free society, are you in a controlled society, are you in a society which is very highly
advanced in its inner control systems? question: where is your sallary
being sent to? to a bank account. some would say the EU should get the impression
we should return to the gold standard. but for that to work you need 13k tons of gold
physically deposited in the ECB. but you don’t have 13k. what you have is 5k alltogether,
3.5k of that held by the german bundesbank. since you don’t have all the gold
required, you’re left with two options: a) increase the value of gold, and thus empower extremely
the 1% elite who already own most of all the gold, or b) you reduce the volume of currency
in circulation. if you do that panic ensues, to limit the panic you limit the amount
of currency people can hold. and the 9.5 trillion in circulation
you bring down to 5 trillion. so people don’t freak out, you tell them you guarantee their
savings but they can now withdraw only 300€ a month, that’s it. what is this? a liberal democracy?
a controlled society? another question: you set foot in a bank, you’re watched by cctv.
you set foot in a supermarket, you’re watched by cctv. ipod transmits your location every 10 seconds. the main product
in bank sector is the operations you do with your card, that shows me what you buy, when you buy,
where you buy, how you buy. with this i compile an electronic profile of you as a consumer,
and this is the main business in the bank sector. not the question of discount rate or
interest rates of ECB or any other central bank. again what is this? a controlled society,
a democracy, etc? but notice two interesting things: they all say we have to make cuts. fiscal, budget, public sector,
state budget, municipalities, healthcare, pensions the best would be if the retired just died
the second they retire – the best measure. don’t we have money? today you have an official
report published by eurostat and mckenzie that says the range of corruption and corruption-related
loss in EU is 320 to 350 billion € a year. loss – that is the cost increase
to the EU social model. what if those 350 billion flip the sustainability
indicator gauge from sustainable to unsustainable? but we don’t have money. accroding
to the latest analyses from 2011 the business sector has losses due to
internal criminality ranging in €1.5 trillion. official profit margin of EU businesses is 2.5%. you sure know that volkswagen is selling huge number of
cars but on their car sale their net margin is 2.5%. what are they surviving on? on selling licenced
spare parts, an area where the EU parliament, by pure coincidence, has extended the validity
of licenced spare parts directive by 8 years. perhaps that parliament was
well handled by lobbyists. pardon me, a lobbyist is not a corruptor, since a corruptor
doesn’t have a lobbyist’s licence but a lobbyist does. that makes him legal. that must make you ask:
and what about EU, do we have other losses? yes, we do. tax evasion – €400 billion.
VAT speculations – another €150 billion.
grey economy – €2 trillion. 31 million employed. i’m mitigating social storms,
what is that? do i let it slide? is it under control? do i use it
to solve social excesses? what is it? yet we still talk about representative democracy
and not about controlled society. let me add a few more little things.
you know we have the iHealth project, so your DNA is being accurately scanned, for
genetic predisposition to medical conditions. of course it will be 100% protected, no one
will get hold of it, it will just be traded. just a detail. i won’t even mention the fact that
the cellular network operators’ databases are being sold. again what is this, a controlled society or something else?
if you consider the fundamental question: if the political elite knows it and no doubt they have this information,
why aren’t they solving this problem? again a little question: you know that
the key factor here are the transnationals. excuse me but i won’t discuss the civilization model because
as long as 8k transnationals control 90% of world trade, please don’t talk to me about
free trade on planet earth. hardly. those 8k transnationals
have 250k affiliations, they determine the localizations of foundries, productions,
trade flows, prices, profit margins and everything else. is it a free market? is it a liberal model? is it
a neoconservative model? is it an ordo model? what is it? any chance it could be an elite-in-power
who regardless of national borders control with ease all the operations
on the planet? another detail: we have tallked about civilization model, i had
had been here for a only while back then. how would you call a state, of a group of states that bail out
the bank sector with $12.5 trillion of tax-payers money? that is the cost of the bank sector
bailout in the 2008-2012 period. could this be privatization of profit and socialization of
losses? they’re all full of the bank union talk nowadays. politicians will have their summits where they’ll discuss
this and everything else. we’re talking 6300 european banks. or isn’t the effectivization of banks
the very goal of bank union? because you know very well that EU bank sector is influenced
by 8 transnational financial conglomerates, no 6300 banks. that by bailing out santander you’re saving the biggest
spanish investor in south america, the south american model, so the south americans talk about reconquista. but the spanish
financial group is not the only owner of santander bank. there’s also dresden bank
and other bank groups, so whose bank are you saving? spanish?
german? english? lichtenstein? luxembourg? and if you know all this, you again ask: what about
the bank union then? what’s the logic behind it? what’s its goal? it’s followed by budget union,
then fiscal union, economic union etc. don’t you think the key question here is,
talking civilization models, with reference to
the previous lecture, who needs euerope controlled by
eine führende hand [one leading hand]? using german here because
of the borrowed term only. do you need a quarreling club of 27 or do you
need a compact whole that speaks unanimously? and in case of a little geopolitical scenario,
where the clash of civilizations applies and there’s nothing that would
debunk huntington’s theory, then it will be a clash of USA or euroatlantic civilization
model with other models, non-coexistable ones. you probably imagine that chinese
are arming up for no reason and that americans have the highest military budget ever,
higher than in the 80s at the peak of cold war. against who? those few terrorists who can be wiped out with a few
remotely-controlled drones so you don’t even have to go there? or by using electronic insect to spread anthrax and
wipe out the terrorists and the rest of the population, which also provides us with free territory. again, is this
a controlled society? representative democracy? what is it? but do you get this information
in the media? how could you? take the amazing book describing the activities
of mr. ruppert murdoch in anglo-saxon countries. a genius who created a fantastic triad:
media, money, political power. political power to make space for profiting,
money to own the media, the media to influence
the public to keep it under control of the political power. but everybody knows that the aglo-saxon model
represents the genius of democracy, doesn’t it? all the while you have a very simple
civilization and media model even here. take who owns the print media – isn’t it passau verlag,
a member of another very intensive big media group? you have electronic media owned by other groups,
say CME, CME sells it to a lichtenstein group, they in turn sell it to a romanian group, romanian owner
sells it to an irish eskimo and no one knows what is where. me and milan šikula like to use
a beautiful example of one swiss study. the swiss are smart tinkerers, not only
in banking sector and watch-making, they made the effort and analyzed
37 million key subjects on the planet and analyzed them from one single aspect:
ownership relationships. and their conclusion was
very intriguing, after iterations: all this complex of 37 million businesses on the planet
is influenced by 147 transnational financial groups. those 147 you can further reduce to 29, and those 29 are,
purely by play of fate and coincidence, exactly the same 29 financial giants that were labeled
“too big to fail” on the G20 summit in december 2011. you don’t have to be into conspiracy theories
to spot a series of coincidences sticking way out of the statistical
measure of coincidence probability. from this we can conclude: when you have such
gigantic leaks due to corruption, grey countries etc, if you know that most of the profitable entities are running
offshore, meaning ouf of their governments’ jurisdiction, how is it possible that no one
analyzes these gigantic flows? well, there’s now light at
the end of the tunnel. UK’s finance miniter and german finance minister
schäuble all of a sudden developed an aversion to financial transfers of transnational corporations, so they
drafted up a suggestion to tax the financial transfers. just a sidenote: €2 billion a year of
such transfers leave slovakia alone, and i have advised my czech colleagues that
this is great, it’s 100 billion CZK, a little thing. second issue: brussels was the first to conclude that
unless they sort out the corruption problem, they will never be able to
sort out the debt crisis. makes sense, because corruption will always take it’s slice,
regardless of what the incomes are, smaller or greater. so unless you solve corruption you will
never get out of the debt crisis but i ask: are we doing anything to sort out the debt crisis?
because the budget indebtedness, in other words, 3% fiscal circuit deficit
will pass the maastricht criteria but necessarily requires more state bonds
to be emitted which cumulate and present a long-term burden for next 20, 30, 40 years.
another curiosity: if i was a politician and not a demented person, i would
read the debt service curves of individual countries. debt service has huge oscillatory fluctuations.
usual debt service of slovakia is €1 billion. but next year it will be €2.75 billion. do you see now why
the €1 billion safety reserve is being created in the budget? and once you analyze this for every individual
member country, you will see a strange thing: our highest debt service was in 2010 when we
paid the last installment of 10-year bonds by which we undebted slovak banks
before privatizing them in 2000. most of the european countries had
a huge debt service spike in 2008. any idiot could tell that this was when those countries
had to emit a great amount of state bonds. based on that i inevitably raise the risk surcharge,
overprice the funding of state debts, and countries like greece
are going to go tits-up. any similarity is purely coincidental. when is the next
spike coming? 2013. next after that? 2016 and 2018. does it now make sense to you why european countries,
when designing their 2014-20 budget, adopted these 3 theses: a) no country will raise its
contribution into the budget that means the budget volume will be
in the 160-180 billion a year area. compare that with the 350 billion that vanish
due to corruption. those are not accounted. b) euro funds will not be sufficient even for current
members, that means no new member states joining. c) the euro funds will not suffice either
way, so you adopt another thesis: a) you increase the share of domestic
co-financing from 5%-15% to 20%-40%. b) these resources will have to be paid back,
so we use the revolving mechanism. you pay the principal, question is
how much, within what time. c) cohesion fund is out – no matter that the summit took
place here, because you will support selected regions, say the paris agglomeration, danubian strategy,
northern coast of germany. pure coincidence. again: controlled society, representative
democracy, all are equal, the 27 are totally equal. from that to another logical conclusion: if all
this mechanism works on the planetary level, then let’s please ask the fundamental question: we’re talking
the european, chinese or some different dimension. but all the elites and all the financial and
physical flows are global, are planetary. giants like volkswagen, siemens and others have
survived because they started outsourcing and offshoring and thus delegated the competability problem
to subcontractors. not to finalizers. but those are the ones with gigantic profits:
20%-30% margins. subcontractors have 1% margin. but the subcontractor can be anywhere on the planet since
the problem is not manufacturing – any idiot can do that, no problem finalizing – any idiot, no problem selling – any idiot,
but finding a paying customer – that’s the problem. the chinese model: chinese middle class – future market.
average income: $36k per head. american middle class: $111k per head.
european middle class: $86k per head. what will the global consumption be in
the future with these income asymmetries? china’s other problem: huge volume of millions of
state businesses that, when confronted with reality, will not be profitable, will be in loss. 180-200 million
unemployed. can you imagine that? we are struggling to solve some
silly 18 million of those in the EU. another level to this, to stay totally focused
here: if this is the picture of the planet, with these asymmetries i mentioned,
which is the true image of 2012 reality, can you deal with all this on national level
with national civilization models or do you have to switch to planetary
level which considers this relationship: humankind comes to a contradictory relationship
with planet’s life sustainability. the problem is not global warming but rather
maintaining the life-sustaining conditions, considering we are in
5th global extinction. why do you think there are so many studies
dedicated to the 11 hominid subspecies of the past, of which only homo sapiens sapiens is left?
how is that possible? all the others are extinct. the last neanderthals went extinct 35k years ago. it
wasn’t due to a supervolcanic erruption in tyrrhenian sea. it means that if there’s a radical change in relationship
between the environment and human civilization, i have to ask again, question so irritating to many,
are humans the only intelligent creatures on earth? do they treat their host the way intelligent creatures do?
have we now become a threat to our host? because the host will get pissed off and
eradicate the virus that poses a threat. meaning this is
a civilization crisis. we cannot maintain this gigantic consumption
with regard to natural resources, b) it’s an overpopulation problem – note that
most of the futurological works don’t mention population of 10s of billions but rather 1.5 billion as the
critical mass for acceptable life standard (human life). next issue, directly connected to it, if you
know the number is 7.5 billion and rising, by the way you know a huge fall in similarities
has occured in china, india, south america, and the only similarity left is held by arab countries.
europe and usa i won’t even mention here. without the influx of asian and hispanic immigrants
the usa would have been in deficit economy long time ago. so is it really sustainable with 7.5 or 9 billion etc?
is the consumption really sustainable? but please adopt another thesis: if this
society which is based on consumption, changes its consumption (i mean material consumption),
what are your production capacities good for? what is employment tied to
production capacities good for? but also: does this ecomonical dimension
characterize activities in this society? or is there a big dimension of activities
that we don’t consider as economical, we don’t appreciate them as economical, despite the fact
that they have fundamental contribution to productivity, because the bringing up of new generation
is the fundamental premise of any future. and we adopt a different thesis: we can do with only 50%
of students graduating from universities each year. regardless of whether it’s BA, MA, PhD.
why 50%? why not 70%? 90%? today the biggest problem in europe is,
and now notice one curiosity: EU set aside €84, €80 and €30 billion. did you register
that? how does this relate to the topic? where does the €84 billion go to? to creation
of artificial asssistent-type positions for graduates who 12 months after
graduating still can’t find job. isn’t this the arab spring trigger? are we
afraid the same thing could happen here? the €80 billion, where to? till 2020. to european
automotive companies and sanation of those. because everybody in europe knows that 12 million
people work in this industry. quite a mass. the €30 billion: central europe. composed of EIB,
world bank, bank for reconstruction and development. why? infrastructure. for what?
interconnecting east and west. including that unfortunate broad-gauge railway track
which we’ve been talking about for years yet we haven’t achieved an
intergovernmental treaty so far. but if the clash of euro-atlantic
civilization is fundamental, and no doubt you’re all familiar
with the works of davis and others who say the next big conflict is going to
be euro-asian, chinese-russian-american, then there’s your answer to whether the
chinese-american civilization model will be fundamental, or somebody is using what they have
always been using througout history: using other countries to wage proxy wars on
their behalf while they get rich from it. perhaps you know what country i mean.
it’s slovakia for sure, because if 40k pureblood mongols
were able to control half of the planet thanks to genghis khan, then 5 million slovaks sure
can control the entire planet. of course slovakia. but this means two fundamental implications: this process
flow that i took liberty of describing so chaotically, to great dissatisfaction of participants since
it begs for a more straightforward structure, is random or controlled? if it’s controlled,
you need to control the society. do you possess the technology required? it’s been
in effect since long time ago, you just haven’t noticed. same mechanism is in place
here as with criminality: until you get knocked out by someone down
dodgy street, criminality doesn’t exist. once it happens, suddenly you come
to understand why we keep saying that criminality has long outgrown
the oligarchical structures and with those it has outgrown
the political elites as well. one tiny number for example:
12.5 trillion for bank bailouts, according to UN high commissioner
for war on drugs and the goevrnments have spent cca 900 billion drug money and black
economy money for bailouts in the financial sector. do you really still think someone will bother
to investigate €12k cash you bring to the bank and that the bank clerk will ask you politely, “where do
these come from? please document this money’s origin.” or will someone bring a case of €100 million
and no one asks anything because the bank needs €100 million available assets
since it won’t get a dime on the interbank market? so, you have a system in place
with huge extent of regulations. basel III will be a great regulatory standard
which we moved from 2019 to 2013, it will mean an increase in mandatory depreciations
and reserves to the triple of what they are today, where will those poor banks get it from? will you
wonder at all the new fees? second implication: always analyze the ownership
repationships and financial flows. if you analyze these two aspects you will find
the answer to the question of controlled society. if you answer the question of power
distribution, finances, you will understand why it is possible to operate
indirectly through ownership. and to finish i present the last curiosity: chinese model.
china eastman investment construction bank. $36 billion for financial year 2013. money source:
chinese sovereign fund. a state fund. investment target? EU. are they buying businesses?
no. they’re buying banks. why banks? because for the last 15 years
the key EU businesses have been financing their expansion
profiles by emitting corporate bonds. who was buying out these corporate bonds?
the banks did. why buy a business? buy a bank. when the bank closes down a business,
you don’t take the heat from social consequences. you own the bank. and today you only need to own 3%
of shares in a banking institution or a business to gain access to corporate know-how and use that
know-how to chose contradictory business strategy which allows you to eliminate your future competitor
using their own techological know-how, trading know-how, regional know-how, yet you carry
no responsibility for what that business is obliged to do. what is that? chinese civilization model? american
civilization model? adaptation of liberal concept? or is it what always applied
in china – two customs: a) the confucian principle of hierarchically structured
society with power elites always applies. b) an individual is not essential.
group survival is essential. compare that to the absolute individualism of
euroatlantic model which manifests in the fact that singles today form 40% of population and young
people don’t want to take care of their parents because what for? they should be dying of
alzheimer or should have been gone by now. again there’s the answer to the civilization model.
and i will boldly express a heretical thesis: civilization model is not the point. let’s get back to that obama’s quote after taking
power and having a speech at the G20 summit. it used to be,
“proletarians of the world, unite!” qualitative shift today says,
“power elites of the world, unite!” and some will say “yeah right, staněk and his conspiracy theories, he
talks about the bilderberg group, skull & bones etc.” follow that thought till you arrive at this: if the
financial groups truly control the world this way, then it’s easy for an english central bank to
sit down with 4 banks and together they agree on a revision of discount rates and suddenly we all pay
20%, 30%, 40% higher interest rates on our mortgages just so that someone can stuff
his pockets with £8 billion a year, the only fallout from that is
that the banker gets fired, that’s when i’d love to be in the shoes of lehman
brothers CEO who brought the bank to bankrupcy and left with $184 million severance package
according to his 2008 tax declaration. then you wouldn’t have to sit at this conference.
instead you would fly in on your private jumbo jet, a cohort of servants would be expecting
you and then carry you to carlton hotel while waving big fans around you.
thank you for your attention. i know you have many questions,
but please, short questions only. may i ask, is the conference over now? i don’t think so, because i think our main duty
here is one thing: those who want to hear, let them have the information. i have no illusions
about it being more than 15% of population. but if this number rises every year, it’s the duty
of those, and i mean those in the auditorium, it’s an honor and a duty to inform
those who show interest. please, mr. novosad i truly enjoyed listening to this, as i must say
my favorite book ever is the appocalypse, and my second favorite is dante’s inferno,
one reason i appreciate this book is that in the 9th circle there’s
a place for economists, too. i just have 2 questions. you were throwing numbers around, 100s of millions
up and down, for us who are used to working with mere hundreds of euros
these are pretty strong slaps now wouldn’t it be better if you
used relative numbers instead? let’s say when you’re talking about corruption,
if you instead said what the ratio to GDP is. scandinavia 1%, here (slovakia)
it’s 20%, greece 40%… ok save that for another lecture… you asked for the ratios… we have had our share already. my other question: the glogal financial elite – first there
was 2k of them, then it was 29, then 8 and then 128, i have my own opinion about this elite, but
you claim you’re informed, how do they do it how are they able to work in such unity? do they
meet? do they have a parliament? or over email? …the way you won’t even notice… didn’t you ever think that maybe the world economic
forum in davos is not held to look for solutions? it’s a probe balloon to detect how the public and
financial markets would react to any proposed idea. next thing: do you not realize that these key
bankers, essentially 4 groups, like jp morgan, they have fingers in everything, including: they have their
people on the board of the american medical association. AMA sets standards for american hospitals.
determines the therapeutic methods used, drugs used, decides what makes you an acceptable
physician and what does not and these AMA standards are
binding even for other countries. now take a look at AMA’s board of directors
and supervisory board. are there any doctors? what you see there are jp morgan representatives,
the rockefellers, some other financiers, and a single doctor – AMA’s president. don’t
forget AMA works closely with the big pharma. the big pharma, although you may not like it,
mr. novosad, produce cytostatics. one dose of those costs $18k. you keep using it
for 3 years and then you die of a mosquito bite. even if you find it amusing. how would you call
people who have the resources to cure cancer but let 100 million people worldwide a year die
of cancer, just because it’s always more handy to use cytostatics rather than effective drugs that
can eliminate your tumor and methastases for $600. but that’s pharma. take for example how it works
in the automotive industry. wait, i’m speaking now. you will all talk ecology. you all know
volkswagen is focusing on electromobiles. you all know how green those cars are. do you also
know that every electromobile means a €5500 grant from the budget of the country
where the car was sold? so don’t be surprised when germans storm slovakia
to buy cars made in the slovak volkswagen factory, slovak national budget pays the €5500 grant
mandatorilly, since it’s a community rule, and the germans will happily drive these
cars back to germany. what is this? an automotive industry phenomena? does it
come from the head office in wolfsburg? or financial interests that determine
the position of automotive industry? what is it? and that’s why if you paid attention you know i talked
about 8 colglomerates in the EU in the bank sector, 29 global conglomerates that control the activities
of thousands of transnational corporations, and if you paid attention you know that
emission of corporate bonds means one curiosity: the corporation is directly depentent
on the owner of the corporate bonds. if it doesn’t buy those back within
set time, it’s left with two options: either rolling with higher
surcharge, or a takeover. and i will ask, how many corporate bonds have
businesses emitted in the last 8 years? €4 trillion. compared to the EU product:
€7 trillion is the full annual GDP, to you it might seem a lot, a little, just enough. note
that these are 3 to 5-year bonds with fast turnaround, most will not pay it back, out of the annual debt
service of €900 billion only €300-€350 will be paid, the rest gets turned by rolling, the risk
surcharge will be reinforced again. how will those businesses work when
dealing with EU’s structural problems? what is the indebtedness of population?
isn’t it higher than that of the countries? what is the indebtedness of pension and healthcare system?
who quantifies and exploits this indebtedness? i didn’t mention those richest 3% for no reason. do they
need production capacities, do they need consumption? they don’t. they need to increase the financial
value of their capital. how do they do that? easy if you have a subject that
generates bonds: a state. what you need is an indebted
state that generates bonds and by trading those you will effectively
increase your capital. what is it? a financial elite? a power elite? a bunch of altruists
who donate here and there to foundation systems when you all know that foundation money is
exempt from tax, even in the case of inheritance. so bill gates founds a foundation, moves
his wealth into it, his inheritors agree because they know once he’s deceased
they will be paying no inheritance taxes. but clearly this is all
pure coincidence. mr. michelko… ever since the crisis broke out i have been
reading plenty of studies, monographs, etc, on the causes of the crisis, on how to
solve it. i think a lot has been written on the system of diagnostics of causes and of
where we are now. we know what went wrong, why those errors are generated, that
it’s all heading down a blind street, but much more interesting for everyone
is the therapy. how to solve this? what conditions to adopt to reverse this
megatrend. there are some theoretical concepts which may be inspiring but perhaps not directly
realizable or applicable, some of you may know: participative economy by michael albert,
famous professor of economics, or the economic democracy concept by
david schweickart, we have published both, but these also seem to me slightly inspirative
but surely not fully adoptable concepts. me and perhaps we all are interested
in the therapy most of all. we know the diagnosis, it’s terrible,
but where do we go from here? for first, unless you bring moral and ethical principles
back to the society, you will not move from the spot. second: if you don’t solve the corruption, i’m not
saying you will ever wipe it out entirely, say one sixth. let’s take slovakia as an example to be concrete.
the volume of corruption leaks is €4 billion a year. tax evasion: €3 billion, €2 billion of that
on VAT. save one sixth of this amount and you don’t need any austerity
package, VAT raise or other things. that is enough for social insurance, pensions
and enough to cover healthcare expenses. but at the same time you have to do one more
thing. question: €4 billion into healthcare, is that a lot, a little, or enough?
my answer: way too much. if siemens offers one MRI machine to
a hospital in bratislava for €21 million but the hospital purchases it for €68 million,
where did the difference go? if one stadium’s reconstruction costs are €1.8 billion
and you pay €3.4 billion, what is the difference? there are cynics who say corruption is not bad.
because the corruptee reinvests the money in the economy, creates jobs, increases the
employment and that’s great. so the first thing: you have to start
limiting the corruption and such things. you can’t allow a transnational wanting
investment incentive grants and at the same time requiring tax holidays and that you don’t
keep an eye on their financial transfers. example: volkswagen. you know they haven’t paid
a sigle euro in taxes in all the time they’ve been here. but they grabbed the investment incentive
grants eagerly with all their hands. third issue: yesterday me and mrs. švihlíková were
in the corruption panel at a conference in prague where one fundamental idea was aired:
a few exemplary cases and personal accountability of every
public or state sector employee. personal accountability in connection
with them not being able to legally transfer their loot to
their spouses so all’s in the clear. only the lawyers were squabbling
about the width of immediate family if it’s father’s brother’s brother-in-law’s son or what.
they have not settled on anything yet. and the last note: really if we succumb to the
fetishization of profit at all costs, on all levels, in everything, notice that in healthcare we don’t talk
about the quality of life, taking care of a person. we talk about the effectivity
and sustainability of costs. a classic example again: we now have an ongoing
debate on unsubsidizing and privatizing of hospitals. a little sidenote: if health insurance companies
had to pay the full costs of healthcare they would not profit and they would happily hand over
the health insurance license. that’s all we need. next thing: according to EU communitary rules
all the money collected by law is a public resource not bound by profit, and there are
no rights to buy portfolios. prime minister fico has those legal analyses. why
are we talking about the portfolio purchases then? when all we need to pay for is the license
acquisition fees and 15 years of adequate profit, calculated in slovak conditions, they have
already earned that on their dividends. but then take a look at the owhership background
of dôvera and union insurance companies and that will give you a hint
as to why it is the way it is. so now the question is,
in society there is: a) little money, b) enough money c) too much money. the answer is: c) too much money. becuse once you remove the huge income asymmetry
and corruption, there will be enough left for everybody to have the swiss life standard.
you just need to take these two steps. question b: who will guarantee this systemic change?
the governmenal elites who are directly involved in this? take the ownership backgrounds of
the 150 members of slovak parliament. pardon me, the czech
bicameral one as well. one logical conslusion: why we don’t read about the icelandic revolution?
that’s the shift toward the participatory alternative. but iceland is a population of 250k,
it’s a small country, it’s an island and in the worst case scenario
we just sink it, right? because my colleague and dear friend milan šikula
will talk about one possible alternative tomorrow, that’s why i won’t go into it now. concept of
non-growth. not some 1.1% GDP every year etc. concept of reasonable consumption,
intelligent life and non-growth. why would you quantify the GDP anyway if you don’t have
the information about financial transfers of transnationals? the error rate with the GDP calculation is 10%-30%
which renders political discussions irrelevant. that’s my answer. thank you, unfortunatelly i have
to close the discussion… one last question… i have to close, we’re running late. thank you
mr. staněk. over to mrs. ilona švihlíková…


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