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Multinational (Global) Operations,   and
The Hidden Faces of Crises and Recessions


Fundamental reports relevant to today's problems and to a better future

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Multinational (Global) Operations,   and
The Hidden Faces of Crises and Recessions

Real-world Problems

We have enterprises being formed which are generally managed by directors who are appointed by the owners. It is the directors who generally take the key decisions on behalf of the owners. At times owners may appoint themselves as directors.

Enterprises are not only formed by people who care for other people and who are motivated by the intensity of the need, but also by those who care only for personal gain in wealth and power over others and who are motivated by this.

Problems arise when owners, directors or managers are either unaware of, or ignore, their purpose which is to satisfy the needs of the community with profit resulting from giving good value for money.

To them profit then becomes an overriding and sole objective and they concentrate on maximising profits regardless of the cost to others, regardless of the cost and consequences to the community.

Profits can be increased by reducing labour costs, for example. Those wishing to increase profits regardless of the cost to others, will thus aim to reduce the standard of living of the working population, will aim to increase the needs of the working population so that people will work for less.

See   Community Economics: Principles.

National Debt

Government has to make ends meet, has to bring about a rising standard of secure living, social security and an increasing quality of life for its citizens.

To these ends do we elect governments and these objectives do we expect our government to achieve.

How individuals in responsible positions or authority, in local and national government, are managing our affairs on our behalf and for us, is of crucial importance to every citizen.

There can be ups and downs but, says Manfred Davidmann, "failure to make ends meet is just as directly and surely the result of bad leadership and management as it is in any commercial enterprise."

A government needs to balance income and expenditure, and generate a surplus, just like ordinary people, enterprises or organisations, as Manfred Davidmann clearly explains.   
See   Inflation, Balance of Payments and Currency Exchange Rates
which includes sections on 'Quality of Government', 'Standard of Living' and 'Worldwide Inequality'.

Consider what has been happening in Germany.

It appears that quite early in this (financial) crisis, the enormous sum of EUR 100 Mrd (100 000 million) was given by the German government to only one bank, the Hypo Real Estate, apparently as aid-money. And it seems that much more could well be required.

Why should we, our future and the future of our children, be burdened on such a large scale by our governments, without our specific agreement, without being even asked?

Government officials seem to be mortgaging the future of their populations, are apparently handing over to 'money-lenders' the value of the future work of their populations, as it is the population who would have to pay the interest the government would be paying on these 'loans'.

And the population would also be repaying the loans, because interest and repayments paid by the aid-receivers to the government, would be included by the aid-receivers in their costs, and thus included in their prices or fees, and thus collected from, and thus paid by, their customers or clients.

In other words, governments are apparently making astronomical money gifts to selected organisations, companies, corporations, institutions, at our cost.

After all, it is we, the people, who elected our governments to manage on our behalf. Instead of doing so, they seem to be selling-off the product, the gain, from our labours and from that of our children and future generations, in effect committing us to servitude.

Who Benefits from So-called Crises

These 'aid' moneys are in effect taken from ordinary people and placed under the control of a few people at the top who in this way gain power, are enabled to dispense patronage (and support each other), gain high incomes and much wealth.

This seems to be a key feature of the way society is organised to benefit those at the top. In other words, society as a whole is organised for large-scale transfers of moneys (income and wealth) from the working population to the already rich and wealthy, for the benefit of those at the top (Vetternwirtschaft, Old-boy network, Cousinhood, Proteksia).

A company, corporation, government and its officials, multinational organisation or multinational meeting, can serve as a front behind which those who take key decisions can hide, as a front for owners, directors or top-level individuals.

Bear in mind that it is people, individuals, who make decisions, are responsible, pocket the gains in one way or another, that gains in wealth and power accrue, not to companies, GmbH's or organisations, but to specific (sometimes shadowy but usually top level) individuals within them, to such as owners, directors and top level managers (executives).

So let us look a little more closely at what is actually taking place all around us, at the normally hidden face of exploitation, at the reality behind the smokescreens. Doing so by looking at, and considering, the information in the following reports which are comprehensive, objective and factual, written in clear and meaningful language:

Title   Description
Understanding How Society is Organised for Controlling and Exploiting People   Describes how corporations (companies) accumulate their capital and reserves from moneys taken from customers. Enterprises are allowed to collect, take over and control such moneys and co-operatives also take over moneys from their members. Describes how people's massive savings are placed under the control of others.
Ownership and Limited Liability   Discusses different types of enterprises and the extent to which owners are responsible for repaying the debts of their enterprise. Also discussed are disadvantages, difficulties and abuses associated with the system of Limited Liability, and their implications for customers, suppliers and employees.
Ownership and Deciding Policy: Companies, Shareholders, Directors and Community   A short statement which describes the system by which a company's majority shareholders decide policy and control the company.
What People are Struggling Against: How Society is Organised for Controlling and Exploiting People   Report of study undertaken to find out why people have to struggle throughout their adult lives, in all countries and organisations, at all levels, to maintain and improve their standard of living and quality of life. We know what people are struggling to achieve and the study investigates why people have to struggle by looking at what they are struggling against.
Multinational Operations: Transfer Pricing and Taxation   Shows how multinationals, which in effect means the owners and directors of the multinational, are in effect taxing the country's citizens, its population, in this way increasing the multinational's profits and thus their own incomes and wealth.

This tax avoidance is legal and governments have not legislated to prevent this practice.

Studies published in the USA, for example, tell us much about the extent to which multinationals can avoid paying tax on their profits. These present a disturbing picture.
Community and Public Ownership   This report objectively evaluates community ownership and reviews the reasons both for nationalising and for privatising. Performance, control and accountability of community-owned enterprises and industries are discussed. Points made are illustrated by a number of striking case-studies.

The underlying economic system, and the way it is applied, serve to brutally exploit ordinary people, the population, and to keep this hidden from them, from the exploited, deceived and manipulated people.

And the effect of these financial, economic, business, cash flow, etc., crises amounts to the wholesale transfer of the vast funds that are being borrowed by governments in the name of the population, and then handed over to mysterious recipients, while at the same time mortgaging the population's future to equally mysterious lenders (who miraculously appear to have such vast funds immediately available!)

And the purpose of these crises thus appears to be to act as a kind of smokescreen, to hide, the way the whole economic system merely serves to brutally exploit ordinary people and population, and to keep this hidden from the exploited, deceived and manipulated people, from the population.

However, socially responsible and caring governmental legislation has to take precedence over the profit-motivated activities of corporations (including financial institutions)

No elected representative, government or government employee has the authority

  1. to hand over to corporations (that is to those who own and control them), or to anyone else, an overriding control over the present and future, economic and social, welfare of its people, or

  2. to sign away the democratic rights of their people for the self-determination of key fundamental aspects of their lives.

See   Multinational Summits and Agreements (Top-level Decision-taking and Democracy).
Title   Description
Multinational Summits and Agreements (Top-level Decision-taking and Democracy)   Describes how secretive top-level multinational meetings and agreements (such as GATT and MAI) negate democratic government and decision-taking. Shows that publicity about what is being planned or taking place is an effective deterrent.
Inflation, Balance of Payments and Currency Exchange Rates   For a full statement and discussion of the alternative ways of balancing national accounts, in meaningful language and with clear diagrams and illustrations, see this report. It is about National Accounts and the national Balance of Payments, in effect about good national financial management, and was first published in 1981. Its analysis and methodology are now widely accepted, world-wide, and can help a great deal when considering the causes and effects of these crises.

Describes, reviews and illustrates the underlying relationships. How inflation affects currency exchange rates and trade. How interest rates determine share prices and pensions, and thus also the extent to which pension funds are in surplus or underfunded. Discusses multinational operations such as transfer pricing, inflation's burdens and worldwide inequality. Clear diagrams and worked examples.

See 'Press Notices'.
Community Economics: Principles   Allows for the needs of the community and for the basic causes of real-world problems and global needs. Includes sections on owners, directors and managers, actual rewards and differentials, social responsibility, social costs and accountability, misuse of the system, irresponsible behaviour, motivation.

There are sections on problems and their causes, on profit motivation. The roles of owners, directors and managers are described and discussed, as are their social responsibilities and the consequences of irresponsible behaviour.

The report includes guidelines as well as controls required to prevent misuse and to protect people.

Manfred Davidmann

Manfred Davidmann is an internationally well-known and respected scientist and author of a number of books and reports which have had and are having considerable impact. His work usually breaks new ground and opens up new understanding and is written in meaningful and easily understood language. Outstanding is that his work is generally accepted as factual, objective and unbiased.

Subject Index Pages and Site Overview

The Site Overview page has links to all individual Subject Index Pages which between them list the works by Manfred Davidmann which are available on the Internet, with short descriptions and links for downloading.

To see the Site Overview page, click Overview

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Updated    2014