The Mayfair Set
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Part 1
Empires cannot be saved by mercenaries who replace conventional forces. The Northern Yemenis learned the art of modern guerrilla warfare from ex-SAS mercenaries. When you spread corruption abroad it follows you back home. The practice precedes the principle. Foreign policy by export has hard limits and soft control.
Part 2
Business cannot be saved by hostile takeovers from indolent owners. Gaming stats can work in the short run, but only then. Money taken from assets goes elsewhere. Money from the streamlined industries entered the stock market. Corporate raiders enrich themselves at the expense of the corporation. Growth by acquisition is phony. Growth by investment in real. When a company growths through operations that growth is real. When a company grows in the stock market that causes bubbles. A company can simultaneously destroy its real operational capacity destroying its real value and boost its share price inflating its market value.
Power can be lost, but it can’t be destroyed. Power moves. Power can move from controller to controller, but also from controllers to quasi-organic masses. The crowdsourcing of management goes inevitably toward crowds. Crowds can be herded, but they can’t be reliably directed. Thus independence is never fully present, but unaccountability is.
Tax evasion is illegal, but tax avoidance is legal. Fraud is illegal, but financial wizardry is legal. The differences between the illegal and legal is not substantive, but stylistic. The effect is the same, but the consequence is quite different. Corruption suffers in the open, but thrives in the dark. It also thrives in disguise.
Part 3
The failures of the past are easily described, but the failures of the future are hard to predict. Just because they are hard to predict in cause, their nature is quite predictable.
The big corporations grew to prominence as a control on the free market and monied power. Managers weren’t supposed to be shareholders because the shareholders were flaky and irresponsible. Shareholders aren’t knowledgable or active enough to exert real control. Shareholders can be manipulated by activist investors. Turning wealth into income destroys wealth. Turning corporate wealth into personal income destroys the corporation and creates personal wealth.
Pension funds resemble wealth, but seek income. They are natural allies to corporate raiders. Their fiduciary interests were too narrowly defined. The deep irony is that the security of workers out of work, put more workers out of work.
Leveraged buyouts can transfer control to a debtor. The debtor hollows out the corporation to pay off, or merely to pay bills, on the debt. Leveraged buyouts can be done by insiders or outsiders. The purchaser becomes an insider with a conflict of interests.
Part 4
Deregulation causes a short term boom or bust as an immediate reaction to the chaos in that market. It then settles into a new pattern.
Powerful entities like controllable partners. If they think they can control you they will partner with you.
Beneficiaries of schemes soon shift from accomplices to active plotters.
Corruption is easier when the bribe target views itself as weaker. Bribery then transforms from a method of personal enrichment to personal empowerment. Corrupted pawns are assets and liabilities to corrupters.