The 'market', gdp, and life

Grazia.tanta@gmail.com 2/1/2021 1
The 'market', GDP, and life
1 - The “market” conditions life
2 - The partner finance state
3 - GDP and covid
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1 - The “market” conditions life
Recently, the OECD offered to the "market", a very comprehensive picture of the economy for
the near future, through the much talked - as little strict, GDP. (see chart at the end).
In particular, the market is the place where normal people, sellers and, buyers of goods meet for
subsistence and trade.
In economics, the “ market ” is a tendency to a infinite and particularly nebulous extrapolation
from a market. In economic terminology, it is called "market" the ethereal space where they
intersect, businessess and very different powers - normal people, harmful pestilences, such as
capitalists (individual or collective) and political classes; goods, everything that transacts in the
“market” even if it has only a virtual existence; and money, lots of money (overwhelmingly in the
form of a record somewhere, in the accounts of the institutions of the financial system) and
money, of course, it too, a commodity, the main and most widespread of the goods, leaving...
covid-19 far behind.
The functioning of the “market” has not people as the beneficiaries or, as the objective of its
existence. The “market” takes the 7000 M of people that inhabit the planet as instruments for
the functioning of the “market” itself, as a large mine from which the human capacity for
transforming nature into goods and providers of services, more or less necessary, is extracted; it
also includes, goods and other elements, coisificados1, amortized till to be considered as
rubbish. As this drive is always scarce for the ambitions of capital, the limitations of the planet
need to be overcome; so what if a well-known top capitalist (Elon Musk) takes colonization and
the guaranteed fuss of Mars very seriously!
The operation of the "market" takes place, not because of the availability of goods and services
essential to life and the reproduction of nature (including human beings) but the consumer
products or services, electronic impulses necessary to thicken the already accumulated capital. If
this mechanism changes or destroy the environment, local or global; if it promotes suffering and
enormous lacks to a significant part of mankind; if it poisons or destroys fields and cities, these
are collateral damages, certainly surmountable by a rise in securities on the NYSE or NASDAQ,
making happy its holders. Those are the artisans that define, in essence, the contents of the
1 Seen as a thinginPortuguese

media and the creativity of their plumitivos2, by duty craft, little aware of the growing margin in
the uncontrolled own overall system management; devoting more to gossip, the fait-divers of
politics and football - Their master’s voices.
The S&P 500 (Standard & Poors) is a finished example of capitalism in this 21st century. It
includes the shares of the most relevant USA 500 companies, listed on the NYSE or NASDAQ
and they have the importance of defining the trends of the "market"; it is based on very
unrealistic ideas about the evolution and efficiency of investments based on ethereal elements
that may be separated into two groups;
 those, related to transactions of land, natural resources, real estate, stocks, currency or
goods; elements with intrinsic materiality;
 or, immaterial, virtual elements, such as patents, the values assigned to trademarks, the
assessment that makes the customer value of a company or, their software.
1975 1985 1995 2005 2018
$ Billions * 0.122 0.428 3.12 9.28 21.03
% of intangibles in total S & P- 500 17% 32% 68% 80% 90% **
* 1 B = 10 ^ 12
(Europe ) * * 2020
Source: https://www.visualcapitalist.com/the-soaring-value-of-intangible-assets-in-the-sp-500/
However, the value attributed to intangibles has shown itself to be more and more determinant
in the creation of the value attributed by the “market” (and a broken bag, called PIB), making it
ethereal, fragile and, in reality, unrelated with the lives of human beings in general. Since the
transactions based on purely conceptual elements, riding electrical impulses, their variations, set
in the financial voluptuousness, do not will leave to affect heavily, millions of human beings,
through the actions of governments and political classes in general, when something escapes to
capital accumulation designs. More than ever, the "market" is a game, a casino, which artificiality
has the particularity to produce its harmful effects on thousands of millions of human beings,
while fattening the elite that Manuel Castells, the beginning of the century, estimated at 1% of
the world population.
The entry into scene of coronavirus came to show the inability of capital institutions
(multinational companies and institutions, such as WHO, captured by private interests), without
forgetting the enormous responsibilities of governments, always agile in the impoverishment or
the withdrawal rights and, in evident bewilderment to overcome the consequences of the viral
invasion. As a result, the number of infected people continues to grow (more than 93 M of
people, including 2 M (jan 14th) of fatal victims, when the end of the one-year period that has
elapsed since the emergence of covid-19 is approaching. Only one Copernician change, creating
democracy, annuls nationalisms, state powers, political classes and, turns economy an
instrument of a harmonious encounter between Humanity and the planet.
2 Plumitivo – The one with the profession of writing what the boss orders

Before protests and rebellions, there is always available, by political powers, one takes care of
the array of repressive or destructive resources ranging from various strains of police and
military, hierarchized based on bestiality, the bombing of cities, with the generation of millions
of refugees, in addition to the use of electronic warfare tools, "clean", able to settle specific
people or, raze cities. Saddam Hussein, even though he had several look - alikes - whom even
his guards did not recognize as such - ended up not escaping the execution ordered by the
occupier; and General Suleimani was shot down without an ancient protocolized declaration of
war or invasion. Trump is a greater symbol of post-fascist modernity.
What in the eighteenth century came to be called economy, consisted of the adaptation of
human effort to the satisfaction of needs. Capitalism has to be associated with the accumulation
of capital in the context of a deranged compulsion by looking for an infinite growth of GDP,
even though it only has a name since 1932. Despite this drive towards the infinite, the
satisfaction of real human needs - food, housing, health, peace and, education - is systematically
impaired to the detriment of capital accumulation, today, mostly in the form of electronic
records that multiply incessantly, without generating a bread crumb; but, stealing many crumbs
from those who do not live in the lust of financial speculation.
2 - The partner finance state
This madness developed by the financial system, to create a constant and accelerated creation
of money, has as counterpart credit creation, debt, from companies, families and, states, a
creation that does not correspond to concomitant use of savings; it corresponds to an
anticipation of the future, especially of future earnings that, within a current practice (economic
and political) may not exist. On the contrary, the formation of credit cascades by the financial
system proceeds without having any significant volume of savings in the balance. So, the
savings or simple deposits placed by people, as a form of annuity that gives them some security
in the future, are in no way guaranteed...even if the States ensure (... gravely...) € 100,000/person
in the case of banking laugh!
It is known that the financial system will never be able to return the amounts deposited by its
customers, just as it is known that public debts have an impossible repayment; although some
Portuguese economists, out of ignorance or reactionarism, pointed, some years ago, to a
restructuring of the Portuguese public debt, which in due time, we considered (as today) as
priceless as illegitimate [1] .
Thus, GDP intends to represent everything, representing, in reality, little. When someone
prepares a meal for you, it doesn't count towards GDP, but if you go to a restaurant you'll join
the “market” and then contribute to GDP! Aid for a young person in schoolwork only enters
GDP, if produced in an explanatory company, on a commercial basis. GDP only considers what is
traded in the "market", knowing that the transactions carried out in the market are, to a large
extent, external and, therefore, impossible to integrate the sanctified GDP. A major element of
integration in GDP is the value-added tax (VAT) which is levied on almost all purchases of goods
or services [2]; a whistleblower at the service of the State, the collective capitalist. Relating to
work, work effort, this integration is assured by the with holding tax on the remuneration of

labor (IRS). Finally, there is an interconnection between goods registered (and paid) by
companies as necessary for their activity (especially automobiles), but whose use is allowed to
capitalists and senior staff for their use in their private life, thus avoiding taxation of income
from work.
The purchase of war material counts as … investment in national accounts! Whether an
investment is a money application into something that allows the satisfaction of an individual or
collective need, it is clear that the military equipment is useless and is artificial to count to GDP
(see EU, the chart of accounts 2010, the SEC10). It should be noted that military spending
comprises a strong import to most countries since production is very concentrated in a few
number which, due to its sophistication, makes buyers (the vast majority of countries)
dependent on components or the load coming from abroad; a weakness inherent in the
respective geopolitics but which, as a rule, result in the inability to engage in wars, unless the
major producing powers or the smuggling networks feed the logistics.
In Portugal, it is estimated that an income corresponding to about 25 to 29% of GDP does not
count within the latter. And that disgusts all governments, always ready and eager to reduce
social costs and increase the revenue from taxes, fees, fines... as economists dislike, with a real
fixation on the infinite growth of GDP...
There is a constant struggle of the binomial States/political classes to frame, under their
knowledge and their enormous capacity for predation, the entire production of goods and
services, without exceptions, as if all transactions between humans have or should integrate a
commercial logic. Among the few situations where the States and political classes are tolerant
facing to a non - accounting in GDP, the main is, corruption; and, for obvious reasons, since they
strive for an open and happy life, achieved through lies and theft, with the distracted connivance
of the judiciary.
For all this oppressive and kleptocratic machinery to work, governments are needed where there
is a presence of mandarins embedded in the influence trade, young technocrats eager for
promotion and, plenty of imbeciles that history will not mention and that seek financial glory as
a result of favors to businessmen.
So, it is no wonder that the governmental caste grows, and grows substantially. In Portugal, the
first constitutional government, in 1976, had 18 ministers and 37 secretaries of state; the current
one has 27 ministers and 68 secretaries of state, not to mention tons of secretaries and advisers,
all paid for by the public purse.
3 - GDP and covid
According to the OECD, the outlook for GDP growth looks very promising for the next two
years. It is possible that after this annus horribilis (2020) the economic situation will prove to be
less disastrous, although this should not have repercussions on the unemployed waiting for
better days and, even less, on those who moved from old people's deposits (cynically referred to
as homes) to the cemetery. The production and sale of vaccines will certainly have effects on
GDP growth.

The balance between the savings available and the investment financed by them no longer has
any meaning, once the financial system runs on its track, separated from the real world; central
banks issue electronic circuits that will inflate the banks' availabilities, having, on the other hand,
credit rights over those, whose return will probably never happen.
So, by the end of 2020, the US FED made available to the big banks a billion (in the US it is a
trillion) dollars, as very short-term credits, in a concerted action with the other central banks
(ECB, and banks in Canada, Japan and, Switzerland) so that there is no shortage of dollars in the
market, at a time when funds will be distributed to the population to compensate for damage
resulting from the virus and the disastrous way in which it has been combated by the Trump
administration.
The US public debt remained stable between 1994 and 2008, between 5 4 and 63% of GDP; in
2009 , with the crisis of subprime came to 74 %, with 84% the following year and to 92% in
2011; growth, albeit slower, reached 107% in 2020 and 122% in April. In dollar terms this means
the passage of 4.5 trillion (billion in Europe) in 1994 to 9.2 in 2008, 14 in 2011 and 23.7 in last
April. A rain of money, a success...which left out the large range of poor people.
In Portugal, in the first ten months of the year , the impact of the measures adopted within the
scope of Covid-19 reproduced a value of € 7692.5 M, divided between revenue breaks and
expenditure increases (an amount equivalent to 3.6% of 2019 GDP) . The most relevant
contributions to these breaks are as follows:
 Measures with an impact on revenue - € 1508.3 M (893.9 M and 611.1 M, respectively
within the scope of Central Administration and Social Security [3] and, essentially, consist
of a suspension of IRC payments (€ 791 M) and exemption from TSU [4] payments (€ 477
M); and also, suspensions of tax (€ 68.5 M) or contributory (€ 71.8 M) foreclosures,
certainly benefiting a good portion of typically relapsed and fraudulent entrepreneurs.
 Measures impacting on spending - € 2356.2 M, highlighting € 819 M for the layoff, €
201.3 M to support the self - employed, € 368.4 M for health equipment and € 248.4 M of
various allowances.
And, of course, they are not included, the purchase of vaccines and correlated spending...
Observing the evolution of the public debt in the periods January / October in 2019 and 2020, it
is easily noted that the increase in debt in 2020 is about ten times greater than that recorded in
the previous year (in € million). Far beyond, therefore, the sum of increases in expenditure and
reduction in revenues.
2019 ( Jan / Oct) + 1225 M
2020 ( Jan / Oct) + 12896 M
The increase in debt is not always easy, given the very low level of interest rates (even negative)
and especially because the financial system needs to raise debt of states, to deliver to the ECB as
collateral for the funds that the central bank issues, with the objective, to be applied to the lust

of financial capital. The enrichment of this has little or nothing to do with peoples' lives,
increases inequalities but...it is positively reflected in the well-known GDP!
The EU has faced the pandemic through its usual narrow economistic way, recalling that in the
beginning, it was just a "common market"; and, thus, everything plans to solve with a focus on
the mobilization of money, of a Multiannual Financial Framework (MFF) in force until 2027, to be
distributed among the member states, with Portugal having € 30000 M, to be contemplated in
the budgets and yet, € 15 300 M grants, without prejudice to the use of more loans.
Bureaucrats, of economistic or mere mandarins bias, experts in the trafficking of influences,
practicing brinkmanship paltry, just based its pressure on people, reducing their well-being, with
isolation, in the narrowing of distances and the frequencies in their movements, in the use of
masks and frequent use of alcohol-gel, which, as it turns out, have been of little use. They
discovered the wide range of vaccines to stick in the population, with variable prices [5] but
excluding those created by geopolitical, Chinese and, Russian challengers. And they look with
culpable indifference on the main victims of the virus, the elderly, especially if confined to
homes, defenseless before the plague that enters by the door or through family members; and,
that make up the overwhelming majority of cases of death by covid-19.
The graph below reflects the growth prospects advanced by the OECD for the next two years.
Perhaps it is, above all, the formulation of something that will comfort the peoples subjected to
fear of the covid-19 and its recent variant; and that, frightened, restricted and confined,
dismissed or placed in layoffs, they watch, frightened or rocked by the hype of the political
classes, to fatten financial capital.
Source: OECD - https://stats.oecd.org/viewhtml.aspx? Datasetcode = EO108_INTERNET & lang = en # )
- - - - - -
[1] How the financial systemcaptureshumanity through debt
http://grazia-tanta.blogspot.pt/2016/12/como-o-sistema-financeiro-captura.html

Restructuringpublic debtsolves nothing in our lives
http://grazia-tanta.blogspot.pt/2016/11/reestruturar-divida-publica-nada.html
Public debt -Public debt-Cancer is not treatedwith paracetamol
http://grazia-tanta.blogspot.pt/2016/05/divida-publica-divida-publica-cancro.html
Europe-debtors ofunpaid debt
https://grazia-tanta.blogspot.com/2019/06/europa-os-devedores-de-uma-divida-nao.html
[2] In addition to other taxes with a specific impact on certain consumptions (beer, tobacco,fuels); inherentto property
( I S Veículos,IUC orIMI) or acquisitions(cars,pleasure boats ...) and others, alwaysin the sights ofthegovernment shift
gang, with a more general impact, such as stamp duty.
[3] PortugueseSocial Security has been stolen by governments and companiesfor decades, in view of the conniving
silence of the parties on the right or less on the right; but also by the press. On the subject, consult:
https://www2.slideshare.net/durgarrai/segurana-social-vtima-de-uma-burla-com-dcadas
http://grazia-tanta.blogspot.pt/2012/07/a-divida-seguranca-social-o-longo.html
http://www.slideshare.net/durgarrai/segurana-social-processos-de-descapitalizao-1
http://www.slideshare.net/durgarrai/estratgia-para-um-sistema-de-segurana-social-favorvel-multido-de-trabalhadores-
e-ex-trabalhadores
[4] TSU is the contribution of the firms to the Social Security of workers
[5 ]Oxford / AstraZeneca - € 1.78; Johnson & Johnson - € 6.9; Sanofi / GlaxoSmithKline - € 7.56
Pfizer/BioNTech - € 12; CureVac - € 10; Moderna - € 14.70, per serving
This and other texts here, in Portuguese and English:
http://grazia-tanta.blogspot.com/
http://www.slideshare.net/durgarrai/documents
https://en.scribd.com/uploads

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