Engulf and Devour
In the Times Online we read:
More aggressive, concerted efforts are needed by key economies to quell financial market stresses if the world is to avoid an even sharper and longer recession, the International Monetary Fund urged today.
Let’s face it, economic catastrophe is unavoidable and was foreseen by many (including those in power) for a long time. The IMF pretends to care, but we know that deep down it favors a single world currency (presumably with itself at the helm). There seems to be a race to get this single currency concept off the ground, with China and Russia also vying for the “top job”. But for ordinary people, a single planetary currency (with its obligatory single World Government) is nothing but a guarantee of Universal Mediocrity. The reasons the world is sick financially is because of Internationalism, not for the lack of it.
In the Mel Brooks film “Silent Movie”, the “Engulf and Devour Corporation” steals the film just before it is previewed. It is a parody of the Gulf & Western company, notorious for its aggressive business practices, hostile takeovers, asset evisceration and so on. It was an example of a highly immoral business in terms of how it treated its assets (companies it owned and its employees). The history of the company has been covered from several aspects and its business methods analyzed in detail:
The imperial conglomerate has wholly owned subsidiaries in unrelated industries. In theory, the conglomerate can use cash generated by operations in some areas to diversify into other areas that might provide counter cyclical market risk reduction.
Actually, these mega-corporations are like huge monsters which destroy smaller, independent companies by taking them over, bleeding them dry (particularly to cover the losses of other companies) and then selling the left-over carcass of a company to some other sucker-company. Some more of this excellent analysis is worth quoting:
In other words, a great many of America’s largest companies are de facto hedge funds. Their “diversification” (Peter Lynch preferred the term “di-worse-ification”) resembles that of imperial conglomerates. This is not exactly good news for a country with out of control debt growth and intractable balance of trade deficits linked to declining product competitiveness.
The size, prestige, and complexity created by cobbling many firms together into a large conglomerate often provides enough maneuvering room to subtly and cleverly plunder shareholders while real underlying wealth-creating performance actually declines (and malinvestment rises). As part of their sorcerer’s bag of tricks, imperial conglomerators typically have enough cash flow to pay for big ad budgets, big consulting fees, major lobbyist services, and big transaction costs. All of this helps to bribe elements of the media, academia, the consulting profession, Washington, and Wall Street into saying nice things about them.
Having too much under one umbrella company is not good for the world, let alone America. A single world currency would bring this about in its most extreme form, as what it really means is a single World Central Bank, with a single Director. It will be the Monster to end all monsters, if it ever comes about.
This is the situation where Capitalism will converge with International Socialism to create the worst form of government the world will ever see. When no nation is independent from the other (politically and financially), when the world’s economy is centrally governed (with politics to follow suit), there will be only one way to march. Yes, there will be “stability”. Yes, there will probably be no more wars between subscribing countries. But there will be no way to stop “scientific government policy” such as forced population reduction, suppression of religion and free speech.
You will smile and you will enjoy it, or else.