House of Paine

the three worlds of currency

     just like the meat 
     globe 

   the money globe 
    
   has three

   worlds

   ==============





     now we all know
    the first world 
   is a lonely place these days
    its solely 
   uncle dollar's world

   and 
    the number two world
   is all 
   the other
    " industrial " currencies
     besides
    uncle dollar's 

   and  the booby world ?

   what else 
   but 
   all the ass hole 
   emerging nations  

   to say the least

   all three worlds
    operate
    in very different
    set ups

   ----------------------------------------
   but fuck

   lets save
    uncle dollar's
   very special
    
   world within a world
   for another visit

    for
   present purposes
   believe me 
   we can
   " merge" worlds
    one and two

   and 
   call em together 

   the north system 


   and set em out
   against 

   the other world 

    the " developing "nations world

    the south system


   -------------------
   the GREAT TILT 
    
   north v south:


   these two systems 
   co exist

   and when 
   a north nation
   transacts with
   a south nation

   shamelessly
    the north nation
   can  exploit
    a  great intersystemic 
                tilt
   in currency values

   a TILT 
    so  SO SHARP 

   in any  
    north nation's favor 

    THE RELATIVE 
   CURRENCY 
    VALUATIONS
    
    at least 

   DOUBLE
   THE   RIP 
     
   that a northerner 
    takes out
    of
   any
   transaction 
   with a  southerner

   DOUBLE THE RIP   

   compared to 
   the usual
    cross rips 
   involved
   when 
    two northerners
   transact 
    between each other  

   --------------------------------------------
   yes 

   come 
   hell or high water 

   the south
   is forced 
   to deal
    with the north

   strictly 
   on 
   the norths terms 

   house odds 
   like vegas 

   north house odds 

   course 
    i doubt 
   that actually 
    surprises  you

   ======================


   needless 
   MAOITE 
   digression
   -----------------------
   remember
   the CCP
    theory of
   " new democracy"

   circa 1940 ?


   very concise 

   putting aside
    the landlord klass

   and looking 
   straight at the burgers

   you find 
   there are
    two types
   of
   " big" burgers 
   in the  third world 

   compradors
    and 
    patriots 

   running dogs
   and 
   nationalists 

   settler states have em too 

   the same pair 

   we had both
    back in 1775 

   but but but

   times change 

   and by
    1940 

   the big burger klass 
   in "emerging nations"
   once 
   the joints 
    gainfully stated 
   but 
   still largely
   pre mechanized  

   if the deal 
   is  
   left to
   big burgers
   to  run 

   well 
    in an imperial world
   things being as they are 
   the bigs 
   will 
   turn 
   "running dog"

   they'll "play ball"
    with the northerners
    scalawag 

   if not 
   right off
   then
    after a good enough
    wood shed job 
   by global
   "markets " forces 

   i.e.
     when facing
   the doom and anarchy 
   of a "failure" state 
   watch em 
   turn
     sell outs 
   national traitors 
   squalid   compradors 
   you name it 
   long as they get to keep 
   whats "theirs"


   so big  burgers 
   of a national-patriotic stripe
   must step aside 

   at least 
    in any decent 
   "  liberation struggle"

   and let
    the " woikahs" and " toilers"
   "representatives" 
     rule 
   ======================

   okay 
   so  
   big burgers 
   need to 
   take
    a side chair 

   why ?


   well 
   heres why

   world econcom dynamics 

   which starts with 

   THE GREAT NORTH/SOUTH TILT 


   ==================

   so 
   just
   follow me  
   while we 
   take a look 
    under
    the hood 
   globally wise

   and you'll 
   see
   how 
    the moving parts 
   of the system 
   will eventually 
    turn all
   third world 
    big burger states 
   into traitors 
   or failures 
   even the ones 
   with a hot commodity 
   like oil 
   ======================

   THE GREAT TILT 


   " north v south
        can get to be 
    quite an uneven bidness"
                       ray charles " hit the road sam "
   --------------------------------------------
   " if  theres a tilt
   a pronounced tilt
    why don't ya 
   prove it pinky ! "
              addison 


   -----------------------
   THE BASICS:


   thesis:

    the systemic  tilt
   is good for profits 

   simple basis  :

   all the north currencies 
   are

    over valued
   compared 
   to the south currencies


   now first stop

   acknowlege 

    pure "dr  pangloss"
   theory 
   tells us

   if this tilt claim 
    were ever 
    true 
   for more 
   then
    a moment or two
    it could 
   never  persist
    
   " free market forces"
   would 
   right the tilt 

   well
   like
    milt friedfreak's
   prophecy
   about opec's
   certain demise 
   back in 
   the soaring seventies 

   sorry doc
   yer theory 
   ain't fittin 
   the  fact's 

   =======================


   by the way 

    internally
   the north system 
     today 
   may
    operate  dynamically
   more or less 
       like the ivy types
   hope for  


   'cause 

   A ) the rig makes
    no sense
    to at least 1/3 of the angels          
   and besides 

    B) the other guy
    in this case
    can stand up too 
   ---------------------------------------

   now 

   A) 
   in  a little detail;

   in the absence
    of other barriers 
   tarriffs quotas etc 
   i.e. in an evolving

    fair trade zone 

   investors and traders 
   have conflicting
   currency exchange 
    preferences 

   example 
   both 
   country  Y's  exporters 
   and Z's importers 
   want
    a low relative currency value

   but but but 
    Y's importers
   and Z's exporters 
   want  a high ratio 

   each has a reason
   the same but off setting reason
   to reap extra  profits
   as a low cost provider vis a vis
   domestic producers  

   but then 
   going thru 
   the looking glass
   low  is 
   the preference
   of prospective Z
    investors in Y's assets
   whereas  
   countryY's own  
    nvestors
   want a relatively high value  
   etc etc etc 

   a complex unstable
    weave
    of force counter force

   more or less 
   keeping things 
   "honest"
   inside the north system

   cause all members 
   get to play 
   in each others back yard
   more or less

   so as a result 

   if you make 
   enough  
   adjustments 
   for the nasty mischief
   technical change 
        and
   "scale effects"
    produce
   and 
   how credit buffers
   and
   price rigidities 
    exacerbate 
    the vile slowness 
   of 
   the  process

   and oh ya 
     throwing  out
    the uniqueness
   of the imperial us dollar  
   and and 
   and ......

   but still
   the north
    stand alone

    kinda 

   sorta

    a little

    resembles
   panglossian 
   figments 


   but global  reality
   as a whole

   forget it 

   NYET

   north south 

    two distinct 
   systems 


   they not only
   co exist 

   they 
   embrace 
   dance even

   but but but 
    but

   they remain
    different
   as night and day 

   the intricate weave 
   of counteracting forces
   that approximates fairness
   in north north 
   is no where to be found
   strictly
    D.O.A.

   the north has
   such  
   hugely decisive 
   systemic 
    advantages
   in dealing 
   with
   the south 

   that 
   its a brutal lie 
   to even  suggest
   the real global economy
   can be 
   "modeled" 
   in any serious  way 
    by  an open 
   unitary
   one 
   set of rules
    for all  
   system

   nope 
   in inter region play
   theres one set
    of fouls and penalties
    for
    the southern team
   and another
    "shorter" list for 
   the northern team  

   and
   the result
    of the difference
   is very much
    as you'd expect 
   it to be


   kind of 
    global 
   jim crow  

   yes 
   there are 
   many nations 
   and 
   many products  

   but they  always
    come 
    in  two different   colors 
   -----------------------------------------------
   whats the diff?

    today to morrow and beyond

   what else


   finance 

   specifically 
   trans national  capital flows

   these are all run
    out of the north

   no matter
    which 
   direction 
   they're moving 

   they started 
   up north 
   somewhere 

   ---------------------

   want to see 
   the norths 
   capital  power
   in action ?
    

   check out 
     
   johnny Payczech's

   " from socialist  camp 
   to capitalist  tramp " 

           kold war 
       eastern europe 

            (  1946-1986)
   -------------------------------------

    here will be
    the real deal
   in  detail

   and it  will convince
   even
   the fucking
   sodomites
   running 
    the junior chamber of commerce 

     (to be completed 
    when 
   my kold goes away) 
    
   --------------------------------------

   till then 
   temporary 
   sum up 

   the eyes alone
    tell ya 
    the rigs held up
   pretty good

   do you really think
   han workers wages
    are only purchasing
   65 ceents an hour 
   worth of products 

   ask the ILO 

   CHECK OUT 
   THEIR
   PURCHASING POWER 
   EQUALIZATION SYSTEM 

   THE RUPEE IS EVEN WORSE 
     THEN THE YUAN 

   ====================

   for 
   simple 
   shameless reasons 
   the north protects
    itself
   against
   "spontaneous"  south
    imports 
   by barriers 
   of a" gillion differing  kinds"

   we'll get back to this  too 

   --------------------------------------
   the final   result 
   of all this flim flaming 


   the north Kaps 
   control 
   all the
   international  benefits 

   that flow 
   between 
   north and south
   control em all
   and grab
    the beautious bulk 
   for themselves

   leaving just enough
   white powder
    for 
   the compradors
   to dope away
   the panks
   of
    their sins
   against
   the  nation

   sell out fiends 
   in  traditional 
   native silk pants
   ==============================

   preview of how it micro works 


   mr north opens
    a south plant

   and suddenly

    the north
    trade door 

   long closed to the south''s
    own producers 

   opens   

   for that
   north owned 
   south  plants products

   get me ?


   anyway

    given
   the cheap  
   southern pricing
   the   products
   so 
   hideously  undervalued 
   get snapped up 
   up north.....


   the ball is rolling now

   competing 
   or non competing
   north plants
    go puff

   the twoway  flow
    continues
   as the low south price  
   fights its way
   thru north markets 
    to  a super prof 
   for its north owners 

    and so
   mr north says 

    " lets expand south some more "

   which means
       
   further 
   south  
   resources
   and  labor  
   are bought

   further
    products for nortyh markets
    are built

   flow after flow 
   north captal in
   south commodities out 

   buy low sell high ........

   understand this 
   simple advantage

   and 
   know 
   that

   the balancing mechanisms 
   that should raise 
   the south currency 
   are blocked 
   or at least enfeebled 
   and the value
    of the  southern currency
   never rises
   or 
   at least 
   never stays risen
    for long ( vide :asia 97 )

   rule one 

   while the north kap invasion
    is under way 

    lady south 
   thou shalt  not rise

   rule two

   u brake rule one
   honey bun  
   and the north will 
   brake u 
   (mexico over and over again )
   -----------------------------------------
    
   the rest is

   well 

   the rest is

   imperialism  101 

   featuring 
   the wall street 
    sex bomb 
   star of all wide screen shows 
   dancing 
    the  hot money  mombo

    that obscene scramble
   that always brakes out 
     where 
     super profits
   and 
    surplus capital
   fail to meet 
   sweet  reason's
   sunny  prospects 
        
     
   see ya next time 
   you  left leaning sodomites
   ------------------------------