An innate goal of science is to simplify the complex. This goal is fundamental and democratic; not always reached but can be found imbedded in its constitution. A simplification of a subject matter makes it easier for people to discuss, understand, control, communicate and finally to advance. In its ideal science is pedagogic and liberating.
In stark contrast stands modern political finance. The political goal of the financial industry is the same as the financial goal of political parties. Individuals may appear to differ but as a collective they strive towards the common goal like moths to a flame. The modus operandi of this aristocracy is obfuscation and sophistication. Their common goal is entitlement.
This blog is not unique, like many others its aim is to reveal and explain how economic and monetary policy entrenches an elite while maintaining poverty and retarding social mobility. Do not come here for originality. The author reads what other likeminded bloggers write, comment on what they comment on. However, a difference lies in the author's pedagogic approach. Frequently bloggers belonging to the author's community fail to properly explain to lay persons how the process of financial obfuscation works. Many do a formidable job analyzing monetary policy, interbank lending, economic statistics or derivative games and often reveal how "raw the deal is to the unsuspecting and insufficiently sophisticated" counterparty. Falling victim to the environment of financial complexity and to their own in-depth knowledge of trading positions, assets under management, proprietary trading desks, rumors etc, etc, they often makes the analysis inaccessible precisely to those who needs to understand what is going on. The unfortunate fact is that the community to a large extent writes only to itself.
This is not a blog for outbursts, oversimplifications or false generalizations. A trade can go bad; nefarious motives are not present where one party made a mistake. Here we explore the difference between a bad trade and a financial process within which one or more attributes were poorly designed and intentionally left unaddressed in order to generate an unfair advantage to the encumbering party, the old institutionalized advantage. The goal of this blog is not to make readers angry, despondent, frustrated or cynical but provide these feelings with the right objects. The author wishes to give the reader the ability to articulate his anger, to empower his understanding of how things are tiled against the middle class in favor of large financial institutions and governments who merely preach markets and smaller government. When people demand political and financial change they must understand what they want changed in order to not waste effort. If not the baby will be thrown out with the bathwater. It is this hurdle to democracy the author seeks to overcome.