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This Week In Doom July 14, 2019


That-Was-The-Week-That-W-That-Was-The-Week-473964gc2smFrom the keyboard of Surly1
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                                                                                                                                                                               Anthony Freda

Originally published on the Doomstead Diner on July 14, 2019

“The muffled tongue of Big Ben tolled nine by the clock as the cortege left the palace, but on history's clock it was sunset, and the sun of the old world was setting in a dying blaze of splendor never to be seen again.” 
― Barbara W. Tuchman, The Guns of August
 


There is a steady drumbeat of madness in the air… or it is simply my pulse in my ears? It grows louder. It screams of inevitability. When I was a little boy, four or five, I distinctly recall wondering whether mine might not be the last generation to live until "the end of the world."  A singular thought for a child– but this was the age of fallout shelters and under-the-desk nuclear attack drills– all of it kabuki, but calculated to help you feel you were doing something. Lately I've had those thoughts again, unbidden after sixty years. A fear, leading up to a Third, and final, world war as pieces float into place. 

A nuclear tipped empire led by a madman drunk on vanity, enabled by a vocal, hate-brimmed minority intent on nothing so much as making Those People suffer. "Those people" mean the right people in their view– immigrants, democrats, liberals, academics, knowledge-workers, African-americans, Latinos, queers– anyone not likely to be found in a Prosperity Gospel megachurch, a Chamber of Commerce breakfast, or a Trump Klux Klan meeting. These people have always been with us. In his satirical 1922 novel about American culture, Babbitt, Sinclair Lewis observed the vacuity of middle-class life and the social pressure toward conformity in a midwestern town. To remember that a quarter of our neighbors are nazis-in-waiting, never forget that as Nixon boarded the helicopter to his ride to shame and infamy, he stood at 24 per cent approval, per Gallup.

Our media reinforces that conformity, even though we are all repeatedly told what special snowflakes we are. Corporate media holds the coat for the military-industrial complex as we push for war. All is propaganda, to "support the troops;" special camo-version uniform accents for major league sports teams; Blue Angels overflights. Relentless propaganda against the new enemy, which this month has been Iran. Unlike the Cold War that informed my childhood, our world is no longer kept “stable” through a bipolar death grip of mutually assured destruction. The mood these days seems to evoke the period prior to WWI, where no one knows how shifting diplomatic alliances will fall, when the competition was between nation states and competing economic orders rather than ideologies. Prior to WWI, the global hegemon/empire was Britain, which after being bled white by two World Wars found the costs of Empire unsupportable. The US assumed the mortgage, and in the fullness of time, we too will assume that Whiter Shade of Pale. In the runup to WWI, the unstable nutcase in the equation was Kaiser Wilhelm. In our case, the loose orange cannon has 24-7 access to our nuclear codes and a troubled path to re-election.

Here's the week:


Alex Acosta Had to Go, But the Jeffrey Epstein Scandal Is Really About Money and Privilege

Acosta took the fall in the Jeffrey Epstein debacle for his role in the disgraceful 2008 sweetheart plea deal that gave Epstein mansion "house arrest" and other perks not available to those us whose net worth is south of ione figures. But it is likely Acosta is merely the first domino.

Labor Secretary Alex Acosta’s resignation Friday amid the mushrooming Jeffrey Epstein investigation made him the latest in a growing list of President Trump’s Cabinet members to depart under a cloud of scandal, plunging an administration that has struggled with record turnover into further upheaval.

As a private businessman, Trump had socialized with Epstein in the early 2000s, was famously quested as saying Epstein "enjoyed his social life," but said he had a "falling out" with Epstein some 15 years ago and ended their relationship.

People who knew the hedge fund business didn't know Epstein, unusual for someone who maintained a lavish lifestyle (including his own private island) supposedly by running hedge funds. 

Real Hedge-Fund Managers Have Some Thoughts on What Epstein Was Actually Doing

Long before Epstein pleaded guilty to prostitution charges in Florida more than a decade ago, his fellow Palm Beach resident and hedge-fund manager Douglas Kass was intrigued by the local gossip about his neighbor.

“I’m hearing about the parties, hearing about a guy who’s throwing money around,” says Kass, president of Seabreeze Partners Management. While stories about young girls swarming Epstein’s waterfront mansion and the sex parties he hosted for the rich and powerful were the talk of the town, Kass was more focused on how this obscure person, rumored to be managing billions of dollars, had become so wealthy without much of a track record.

Kass was well-connected on Wall Street, where he’d worked for decades, so he began to ask around. “I went to my institutional brokers, to their trading desks and asked if they ever traded with him. I did it a few times until the date when he was arrested,” he recalls. “Not one institutional trading desk, primary or secondary, had ever traded with Epstein’s firm.”

When a reporter came to interview Kass about Bernie Madoff shortly before that firm blew up in the biggest Ponzi scheme ever, Kass told her, “There’s another guy who reminds me of Madoff that no one trades with.” That man was Jeffrey Epstein….

…there is much skepticism among the hedgies Intelligencer spoke with that Epstein made the money he has — and he appears to have a lot, given a lavish portfolio of homes and private aircraft — as a traditional money manager.  A fund manager who knows well how that kind of fortune is acquired notes, “It’s hard to make a billion dollars quietly.” Epstein never made a peep in the financial world.

More in this excellent article from The Intelligencer at the link.

Some have observed that we've seen the like of Epstein before. I think not. While indulging his taste for pedophilia, Epstein has for all intents and purposes run a honeypot operation spanning decades, and including high rollers and the odd president or two. The contents of Epstein's "little black book" is worth billions. Acosta said he was waved off in the 2008 plea deal, having been told that Epstein "belonged to intelligence." Whose intelligence, no one is saying. 

As Douglas Kass said in the quote above, "It's hard to make a billion dollars quietly." Yet no one in hedge find circles knew of him, had traded with him, or knew anyone who had. Yet someone was paying for his lifestyle. Billionaires and politicos buying decades of silence?


A Twitter post by one Quantian that lays out a likely scenario for Epstein's scheme that ticks off all that we know to be true. If is worth a read, on Threadreader here and on Twitter, if you'd rather.


It mat be that Epstein is not a garden variety pedo. He ran a network supplying children– not "young women," as the media spinners might put it– for high rollers and the connected. Whether or not we will ever know the "truth," or what passes for it, remains very doubtful. We've seen this act before– remember the Franklin affair and cover-up? Those bastards literally got away with murder. the investigators got steamrollered with money, and even the FBI got involved on the part of those accused: they managed to stop a John Walsh America’s Most Wanted series which featured the Franklin case. Most charges were dismissed. So those seeking justice may be disappointed, but before the charges are dismissed, some of the names in Epstein's famous "little black book" may do some summertime sweating. The root issue is the workings of the American class system. From Franklin, Nebraska to New York City and "St. Jeff's Island," we see the the manner in which people of great wealth and high social standing are often able to purchase their own flavor of justice, regardless of how flagrant or hideous their crimes may be.  Judges, prosecutiors, and juries often genuflect before a high enough pile of cash.


Savage tick-clone armies are sucking cows to death; experts fear for humans. 
Spreading invasive tick spawns without mating and can transmit deadly disease.
Ravenous swarms of cloned ticks have killed a fifth cow in North Carolina by exsanguination—that is, by draining it of blood—the state’s Department of Agriculture and Consumer Services warned this week….

The tick—the Asian longhorned tick, or Haemaphysalis longicornis—was first found terrorizing a sheep in New Jersey in 2017 and has established local populations in at least 10 states since it sneaked in. Its invasive sweep is due in large part to the fact that a single well-fed female can spawn up to 2,000 tick clones parthenogenetically—that is, without mating—in a matter of weeks. And unlike other ticks that tend to feast on a victim for no more than seven days, mobs of H. longicorni can latch on for up to 19 days.

The state government is North Carolina no longer maintains any capability to respond to this type of new public health threat – the Republicans who took control of the state legislature in 2010 eliminated the  Public Health Pest Management Section — which included the state’s tick control and research programs — in their 2011 budget.


Trump backs away from census citizenship question, orders agencies to hand over citizenship information to Commerce

President Donald Trump retreated from his quest to add a question about US citizenship to the 2020 census on Thursday, instead asking government agencies to provide records that could determine a head-count of citizens without polling census-takers directly. 

The turnaround comes after Trump repeatedly said he would continue fighting to insert the question despite a Supreme Court ruling that dealt a blow to the effort last month. It reflects legal reality intersecting with Trump's desire to bolster his image as an immigration hard-liner as he moves ahead with his 2020 reelection bid.

Some type of direct action by Trump had been one of several avenues explored by the administration to place the question on the population survey following the late June Supreme Court ruling. 

The Trump administration initially announced printing would go forward without the citizenship question. Government attorneys had asserted to the courts that the printing process — either with or without the question — needed to begin on July 1 to avoid extra costs.


Top 1% Up $21 Trillion. Bottom 50% Down $900 Billion.
Stop the Presses: The rich get richer.

Every quarter, the Federal Reserve puts out the Financial Accounts (aka “Z1” or “Flow of Funds”), which provide economy-wide aggregates for nearly every kind of asset and liability there is. Every three years, they put out the Survey of Consumer Finances (SCF), which is a household survey that records many of the same kinds of assets and liabilities that are in the Financial Accounts. In a perfect world, the assets and liabilities in the SCF would sum up to the aggregates in the Financial Accounts, but for various reasons they do not.

Recently, the Federal Reserve released a new data series called the Distributive Financial Accounts, which combine the Financial Accounts and the SCF to provide quarterly estimates of the distribution of wealth in America that do sum to the aggregates in the Financial Accounts. The series goes back to 1989, the first year the modern SCF was administered and runs to the fourth quarter of 2018, the last quarter for which there is Financial Accounts data.

The insights of this new data series are many, but for this post here I want to highlight a single eye-popping statistic. Between 1989 and 2018, the top 1 percent increased its total net worth by $21 trillion. The bottom 50 percent actually saw its net worth decrease by $900 billion over the same period…

What the final product reveals is a 2018 where the top 1 percent owns nearly $30 trillion of assets while the bottom half owns less than nothing, meaning they have more debts than they have assets. This follows from 30 years in which the top 1 percent massively grew their net worth while the bottom half saw a slight decline in its net worth.


By 2050, many world cities will have weather like they’ve never seen, new study says

The price of climate denial will be paid. Gardeners already know that growing zones have moved steadily northward during our lifetimes, and that temps keep getting hotter as glaciers at both poles melt and sea levels rise, and storms come earlier and with greater force and water load. Tropical Storm Barry this week was an early preview.

CLIMATE FORECAST FOR 2050: New York City winters will have the weather of today’s Virginia Beach, damp and cold London will be hot and dry like Barcelona, wet Seattle will be like drier San Francisco, and Washington D.C. will be more like today’s Nashville but with even greater variation in temperatures and precipitation. Those predictions are according to the first global analysis of how some cities’ climate conditions will shift under climate change.

“We wanted to know what’s the most conservative estimate of what the climate will be for 520 major cities in 2050,” said Tom Crowther, a researcher at ETH Zürich, and senior author of the study published today in the peer-reviewed science journal PLOS ONE.

“The changes we found are huge,” Crowther says in an interview.

Generally speaking, cities in the Northern Hemisphere will have the climates cities more than 620 miles to their south have today, he said.

There are no good pairings or analogues for more than 22 percent of the world’s major cities—those with one million or more people currently, researchers found. Those 115 cities, including Washington and 16 other U.S. cities, will have unprecedented climate conditions by 2050 compared to what they saw in 2000, the baseline for the study.

That doesn’t mean that Washington will be hotter than Riyadh, Saudi Arabia, today. It means that there is no current match for the wide climate variations in temperatures, seasonality, and precipitation the city will experience, said Crowther.

The vast majority of the 115 cities that will experience “novel” climates are in the tropics and include metropolises like Kuala Lumpur, Jakarta, Rangoon, and Singapore. Changes in tropical cities will be less in terms of temperature increases, but will be dominated by more frequent extreme precipitation events and the severity and intensity of droughts.

“The fate of major tropical cities remains uncertain as many will experience unprecedented climate conditions,” the study concludes.


Earth's Ancient Life Forms Are Awakening After 40,000 Years in Permafrost

Researchers in a warming Arctic are discovering organisms, frozen and presumed dead for millennia, that can bear life anew. These ice age zombies range from simple bacteria to multicellular animals, and their endurance is prompting scientists to revise their understanding of what it means to survive.

"You wouldn't assume that anything buried for hundreds of years would be viable," said [evolutionary biologist Catherine} La Farge, who researches mosses at the University of Alberta.

In 2009, her team was scouring Teardrop's margin to collect blackened plant matter spit out by the shrinking glacier. Their goal was to document the vegetation that long ago formed the base of the island's ecosystem.

"The material had always been considered dead. But by seeing green tissue, "I thought, 'Well, that's pretty unusual'," La Farge said about the centuries-old moss tufts she found.

She brought dozens of these curious samples back to Edmonton, lavishing them with nutrient-rich soils in a bright, warm laboratory. Almost a third of the samples burst forth with new shoots and leaves.

"We were pretty blown away," La Farge said. The moss showed few ill effects of its multi-centennial deep-freeze.

Russian teams working on a similar project have reanimated nematodes from over 40,000 years ago:  the most complex creatures ever revived after a lengthy deep freeze. What else could be buried in the Arctic deeps awaiting reanimation? And what could possibly go wrong?


Global clean-energy spending is plummeting

Worldwide funding of clean-energy projects fell to its lowest level in six years, in a staggering blow to the battle against climate change.

The findings: BloombergNEF found that global investments in solar, wind, and other clean energy sources added up to $117.6 billion during the first half of 2019, a 14% decline from the same period last year and the lowest six-month figure since 2013.
China saw a 39% drop in investments, as the nation eases up on its aggressive solar subsidies to get costs under control. But spending also declined 6% in the US and 4% in Europe, part because of policies that are being phased out and weak demand for additional energy generation in mature markets.

The big picture: The new report suggests last year’s slowdown in renewable-energy construction has extended into 2019, taking the world in exactly the wrong direction at a critical time (see “Global renewables growth has stalled—and that’s terrible news”).  Every major report finds that the world needs to radically accelerate the shift to clean energy to have any hope of not blowing past dangerous warming thresholds (see “At this rate, it’s going to take 400 years to transform the energy system”).

The smart money says we don't have 400 years, or even 40.


The fact is that our modern system is dependent upon petroleum, and will be for the foreseeable future. Our lives, society and economies are based on oil and petroleum byproducts.  The plastics, the supply chains that take the raw ingredients from manufacturing to retail are all dependent on petroleum and byproducts. Whether we can generate enough renewable power to replace a significangt portion. of this is arguable. . Decision makers have always known this.

We knew the potential impacts of global warming 40 years ago. Jimmy Carter put solar panels on the White House; Reagan had them removed, and declared, "Morning in America." Weaning a society and a world from petroleum might have been difficult enough had we summoned the will; but with the Reaganauts in charge such change was off the boards.

Today, production webs are now globally interlocked. The rise of developing nations like China and India and the Pacific Rim means that their citizens want a car in the driveway and steak on their plate just like the first world imperialists that stole their assets 100 years ago. Any attempts for the West to move to a zero emission scheme would have been rendered moot if the Third World refused to go along. Forego growth? Not likely.

So knowing this, the elites have chosen to deny climate change for as long as possible to a public too complacent to notice or make changes themselves. Once a general alarm was sounded and a tipping point of public opinion was close, they would pay lip service to environmentalism. Enter some toothless carbon-cutting deals without enforcement mechanisms, and with an action date near mid-century. Anything to keep people placated and assuming that their Governments were actually working the issue.

Use the notion of the free market meeting the problem head on once there is enough profit involved. By the time this might be viable, it'll be far too late to head off the four degrees Celsius increase, the tipping point towards full blown environmental Armageddon.

Meanwhile, TPTB maximize short term profit, and use that profit to start socially engineering the lower energy footprint, ownership-free world that the New World Order will demand. And rathole money in land, bunkers and other assets to make sure they and their progeny are prepared to survive a couple years of zombie unpleasantness, then emerge with prerogatives intact.

The exacerbated income inequality demonstrated above is just more evidence that TPTB are concentrating the wealth. It's a game we're not even aware is being played, because we're so complacent. By the time the jig is up, they will already field their own private armies in order to keep themselves and their families safe from a very pissed off population.

Two degrees rise is almost certainly baked in at this point, and because the world economic system is reliant on petroleum, there's no changing its current  direction absent a worldwide commitment, the consensus for which is notably absent. And this does not account for other hidden feed back loops within the Earth's biosphere, such as frozen methane reserves in the Arctic.

When I was young, the earth was home to 3.7 billion people. Now, 8+ billion people will all want desperately to survive what is coming. The kind of climate migrations we'll be facing will almost certainly mean nations will go to war over dwindling supplies, sources of fresh, clean water foremost among them. Look to the news out of India this week, then consider what the disappearance of glaciers will mean for the great, glacier-fed rivers of Asia. We know what the end game is, and we've known, or been able to deduce, for forty years. Nothing has changed except that time grows shorter. And I still wonder whether my generation will be the last to walk the earth as we knew it.


banksy 07-flower-thrower-wallpaperSurly1 is an administrator and contributing author to Doomstead Diner. He is the author of numerous rants, screeds and spittle-flecked invective here and elsewhere. He lives a quiet domestic existence in Southeastern Virginia with his wife Contrary. Descended from a long line of people to whom one could never tell anything, all opinions are his and his alone.

Trying to Stay Sane in an Insane World: Part 3

Off the keyboard of Jim Quinn

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Published on The Burning Platform on August 25, 2013

Cuckoos_Nest

Discuss this article at the Economics Table inside the Diner

In Part 1 of this article I documented the insane remedies prescribed by the mad banker scientists presiding over this preposterous fiat experiment since they blew up the lab in 2008. In Part 2 I tried to articulate why the country has allowed itself to be brought to the brink of catastrophe. There is no turning back time. The choices we’ve made and avoided making over the last one hundred years are going to come home to roost over the next fifteen years. We are in the midst of a great Crisis that will not be resolved until the mid-2020s. The propagandists supporting the vested interests continue to assure the voluntarily oblivious populace the economy is improving, jobs are plentiful, inflation is under control, and housing is recovering. Bernanke and his band of merry money manipulators, Obama and his gaggle of government apparatchiks, and their mendacious mainstream media mouthpieces have enacted radical measures in the last five years that reek of desperation in their effort to give the appearance of revival to a failing economic system. Stimulating the net worth of bankers and connected corporate cronies through engineered stock market gains has not trickled down to the peasants. Our owners try to convince us it’s raining, but we know they’re pissing down our backs. Our Crisis mood is congealing.

“But as the Crisis mood congeals, people will come to the jarring realization that they have grown helplessly dependent on a teetering edifice of anonymous transactions and paper guarantees. Many Americans won’t know where their savings are, who their employer is, what their pension is, or how their government works. The era will have left the financial world arbitraged and tentacled: Debtors won’t know who holds their notes, homeowners who owns their mortgages, and shareholders who runs their equities – and vice versa.” The Fourth Turning – Strauss & Howe – 1997

The core elements of this Crisis have been discernible for decades. The accumulation of private and public debt; the civic, moral, and intellectual decay of our society; the growing power of the corrupt corporate fascist surveillance state; growing wealth inequality created by crony capitalist skullduggery; the peak in cheap easily accessible oil; and global disorder caused by overpopulation, scarce resources, religious zealotry, and war; combine in a toxic brew of unimaginable pain, anguish and tragedy. The Crisis began in September 2008 and the sole purpose of the deceitful establishment has been to avert a catastrophe that is destined to extinguish the wealth, power and control they’ve treacherously procured over the last few decades.

The appearance of stability is illusory, as the civic fabric of the country continues to tear asunder. Record high stock markets do not trickle down. The debt engineered stock market gains enrich the .1% at the expense of the working class. Bernanke’s “wealth effect” theory is a charade. He has backed the country into a corner with no escape for the prisoners of his QE prison (he’ll escape to collect his Wall Street paycheck in January). He knows that without the combined $300 billion per month being pumped into the veins of zombie U.S., European and Japanese insolvent zombie banks by central bankers, the worldwide financial system will implode. He blathers on about tapering while awaiting the next government manufactured crisis to give him an excuse to continue or increase his money printing exercise. Control P is the only key on Bennie’s laptop. To think dropping trillions of dollars into the laps of Wall Street will somehow stimulate Main Street is beyond laughable. Some ideas are so ridiculous that only intellectuals and academics could possibly believe them.

The masters of propaganda seem baffled that their standard operating procedures are not generating the expected response from the serfs. They have failed to take into account the generational mood changes that occur during Fourth Turnings. Propaganda loses its effectiveness in proportion to the pain and distress being experienced by the citizenry. Goebbels’ propaganda enthused and motivated the German people during the 1930s as Hitler re-armed, scrapped the Versailles Treaty and took over countries, as well as when he was conquering Poland and France in the early phase of World War II. Propaganda didn’t work so well when the U.S. Air Force was obliterating Dresden, Hitler was hunkered down in his bunker about to put a bullet in his skull, and the Russians were on the outskirts of a burning Berlin. Propaganda works when the people want to believe the falsehoods. When the cold harsh reality slaps them in the face, propaganda no longer works.

    Propaganda Working Well                   Propaganda Not Working So Well

  

The American Empire propaganda machine continues to gyrate but the gears are getting clogged with the gunk of mistruths revealed. Even the willfully ignorant masses are beginning to realize they have been screwed by those running the show. After five years of debt bankrolled “no Wall Street banker left behind solutions” and Keynesian crony capitalist handouts, real median household income is 8% lower, there are 5 million less full-time jobs, there are 19 million more Americans on food stamps, gasoline prices hover near all-time high levels, health insurance premiums are skyrocketing, local, state and Federal taxes relentlessly rise, and the national debt has gone hyperbolic – up by $6.7 trillion in five years.

This 67% increase is more debt than the country accumulated in the 214 years from its founding in 1789 through 2003. The $6.7 trillion of new debt, along with Bernanke printing almost $3 trillion of new fiat dollars and handed to his puppet masters on Wall Street, have generated a pitiful $1.8 trillion of GDP growth. We know Main Street has not benefitted from this insane expansion of our empire of debt. But, someone benefitted.

Shockingly, those who profited from the actions of Bernanke, Obama, Congress, and the U.S. Treasury are the very same malevolent predators that created the financial disaster and prompted the emergency response in the first place. QE to infinity has not been a failure. It has done exactly what it was designed to do. In September 2008 every major Wall Street bank was insolvent. Orderly bankruptcy under existing law was the solution. The richest, most powerful men in the world would have seen vast amounts of their illicitly acquired wealth vaporized. Hundreds of billions in bad debt would have been written off, with no lasting impact on the average American. A brief violent depression would have ensued, but with the bad debt purged from the system and only prudent sensible bankers left, the economy would have rapidly recovered. Instead, a small cadre of financial elite hatched a plan to preserve their ill-gotten gains through accounting fraud, and manipulation of monetary and fiscal policy.

Bernanke and Paulson compelled the pocket protector wearing accounting weenies at the FASB to allow Wall Street banks to mark their assets to make believe rather than market. Bernanke then proceeded to buy up toxic assets from the Wall Street banks, providing a never ending flow of QE heroin injected directly into the veins of Wall Street bankers, and paying .25% on all deposits made by the Wall Street banks. Bernanke didn’t do this so the banks could make loans to John and Susie Q Public and small time entrepreneurs with great business ideas. He did it so Wall Street could repair their insolvent balance sheets on the backs of American taxpayers. The $2 trillion of excess reserves parked at the Federal Reserve by Wall Street banks is “earning” $5 billion of risk free profits for the Too Big to Trust autocrats. Wall Street has generated billions of additional accounting entry “profits” by pretending their future losses on worthless loans will be minimal. Lastly, the “Bernanke Put” allows the Wall Street traders to use their HFT supercomputers and advanced notice of economic data to front run the muppets and syphon billions of risk free trading profits from the real economy. The chart below reveals all you need to know about the true purpose of Bernanke’s QEfinity.

You’d have to be blind, deaf and dumb to not realize who Bernanke is really working for. But it seems the majority of people in this country don’t care, don’t understand or don’t want to know the truth, as long as the ATM keeps spitting out twenty dollar bills, there are still Cool Ranch Doritos on the shelf at the Piggly Wiggly, and the EBT card gets recharged on the first of the month.

“The mischief springs from the power which the monied interest derives from a paper currency which they are able to control, from the multitude of corporations with exclusive privileges which they have succeeded in obtaining…and unless you become more watchful in your states and check this spirit of monopoly and thirst for exclusive privileges you will in the end find that the most important powers of government have been given or bartered away….” ― Andrew Jackson

Parasite on a Parasite on a Parasite

  

“This is by no means a new idea, nor is it the least bit radical; it is deeply conservative and highly traditional. It was Aristotle who first defined the economy as an exchange of goods and services for money, commerce as a parasite on the economy (where those who create nothing extract a share by trading) and finance a parasite on commerce (which extracts a share by switching money from hand to hand – a parasite on a parasite). A typical US politician, such as the president, who counts financial companies such as Goldman Sachs among his top campaign donors, could be characterized as a parasite on a parasite on a parasite – a worm infesting the gut of a tick that is sucking blood from a vampire bat, if you like.” – Dimitri Orlov – The Five Stages of Collapse

The bastardized form of capitalism that passes for our economic system today is based upon a parasitic relationship between Too Big To Trust Wall Street banks, powerful mega-corporations, connected wealthy cronies, and bloodsucking politicians, with the American people as the debt bloated host. The parasites have put the host on life support in critical condition. It took forty years, since Nixon unleashed immoral bankers and devious politicians by decoupling our currency from gold, but the financialization and gutting of America through the false promises of globalization is almost complete. The quaint days of the 1950s and 1960s, when the country was supported by an economy that produced goods, invested in productive assets and citizens who saved money to buy things they desired, are long gone. The insane concepts espoused in the mid-1960s that created our current day welfare/warfare state required Americans to stop using their brains and start using their credit cards. The degenerate Wall Street banking cabal were thrilled to oblige by providing vast sums of debt to the government and the masses. Constant  war, uncontrolled materialism, and an ever expanding welfare state is the triple crown of profits for unscrupulous bankers and corporate CEOs. Once the inconveniant anchor of gold was cut loose by Nixon, the bankers and politicians were free to guide the U.S. Titanic towards its ultimate destination.

The decades long shift from a productive manufacturing society based on savings and investing in productive capital assets to a predatory consumption society based on borrowing and spending has enriched the Wall Street financial elite and destroyed the working middle class. An economy where 25% of its GDP was produced by manufacturing products allowed all boats to rise. A hard working middle class family had a chance to move up the social ladder. An economy where more than 20% of its GDP is dependent upon parasitical financial intermediaries that produce nothing and add no value creates the extreme wealth inequality we have in our society today. Only the yachts rise in such a society. The shift has been slow and methodical and we’ve crossed the point of no return. The propaganda being spewed by the mainstream corporate media and the connected crony capitalists like Jeffrey Immelt about a U.S. based manufacturing revival is designed to pacify the distracted masses. The pillaging by the FIRE sector will continue until the host is deceased.

The growth as a percentage of our GDP in business & professional services from 5% of GDP in 1970 to 12% today provides further evidence of a country in a downward spiral. The country wastes billions hiring “experts” (lawyers, accountants, consultants) to interpret the millions of pages of indecipherable laws, regulations and tax codes created by politicians used to control, monitor, tax and bilk the masses. The 3,300% increase in spending on healthcare and education since 1970 has created tens of millions of sickly functional illiterates. The corporate food conglomerates mass produce processed poison, Madison Avenue maggots peddle the poison to the masses through relentless Bernaysian propaganda marketing, creating nauseatingly obese human beings, and then the corporate healthcare conglomerates treat the dozens of diseases created by this insane process with their drugs, while corporate profits soar ever higher. We all know that superstar corporate CEOs like Jack Welch, Jamie Dimon, Angelo Mozillo, and Mark Zuckerberg deserve hundreds of millions in compensation for adding so much value to our everyday lives. How would we survive without a Best Buy credit card through GE Capital at 21% interest, or a JP Morgan created credit default swap sold to customers and then shorted, or a subprime negative amortization liar loan used to purchase a $750,000 McMansion, or having a place to post every inane thought we have so employers and the NSA can keep up to date on our status.

Corporate-Profits-GDP-081613

The corpulent populace have been so dumbed down by the public educational system run by social engineers and union teachers, along with the 24/7 corporate media propaganda inundating them since childhood, they are content to stare into their boob tubes, play with their iGadgets, or read what a friend of a distant relative ate for breakfast, on Facebook. The government provides enough welfare handouts to keep the increasingly larger lower classes from rioting by borrowing $1 trillion per year from future unborn generations. When the middle class shows signs of discontent regarding their declining wages and lack of jobs, the government and the military industrial complex use the bogeyman of impending terror threats and evil foreign dictators to wage undeclared wars and distract the willfully ignorant masses. Plus, there are always fantasy football leagues, paying $300 to take your family to watch drug enhanced millionaire baseball players not run out a ground ball at a $1 billion taxpayer financed stadium, shopping at a suburban ghost mall with one of your nine credit cards to dull the pain of a meaningless pathetic life, or watch eight year old Honey Boo Boo dress like whore and parade before adult judges on the Discovery Channel. Our choice to ignore the basic mathematics of our lives has resulted in creating a nation of sub-humans wandering through life like zombies in a bad horror movie.

“Anyone who cannot cope with mathematics is not fully human. At best, he is a tolerable subhuman who has learned to wear his shoes, bathe, and not make messes in the house.” ― Robert A. Heinlein

And we owe it all to the bankers and politicians that have procured undue influence over the political, economic, and financial mechanisms that control the country. The 2008 financial collapse, systematically created by the pathologically egomaniacal financial elite who are programmed to thrust their vampire squid blood funnels into every potential pot of untapped wealth in the world, should have led the American people to tear down their criminal enterprise and throw the treacherous predators into prison. Instead, the fearful masses begged the Wall Street bankers and the pandering politician flunkies in Washington D.C. to steal more of their money. The bankers won again.

“They have been able to pay off politicians with political campaign funds and have been granted informal and unspoken yet complete immunity from prosecution, setting the scene for even bigger confiscations of investor capital. With the risk of legal repercussions so small and the temptation to steal so large, why would any of them not take advantage? What do they have to do to stop people from entrusting them with their savings? Put up neon signs that say, “We steal your money”?” – Dimitri Orlov – The Five Stages of Collapse

This capturing of unwarranted power by an unelected group of rich powerful men through deceitful means has left the country at the mercy of these psychopaths as their increasingly desperate measures insure the ultimate destruction of wealth across the planet. There are four central bankers (U.S., EU, Japan, China) who are the front men for the oligarchs. They are empowered with control over 70% of all the money on the planet. Do you think they have your best interests at heart? The financial crisis was caused by excessive levels of debt, created to benefit the issuers of the debt and the politicians who used the debt to promise voters more goodies than they could ever possibly deliver. Those politicians would be long gone before the IOUs came due, but the promises got them re-elected and made them rich. The “solutions” put forth by our owners since 2008 to solve our debt crisis have been to create debt at an even more rapid pace. Total credit market debt in the U.S. has surged by $6 trillion since 2007 to $57 trillion, 345% of GDP (it was 150% in 1970). The entire world is awash in un-payable levels of debt as reckless central bankers and gutless politicians know only one response to every crisis they cause – PRINT!!!

The decline in U.S. household debt has been solely due to write-offs, as the bad debt was shifted from reckless households and gluttonous bankers to the government books, where those who prudently abstained from the debt orgy are now on the hook for trillions of newly created unfunded obligations. Despite a moribund economy, with the lowest percentage of the population employed since 1983, consumer spending tanking, interest rates rising, gas prices near record highs, and poverty levels at all-time highs, corporate profits are off the charts. It seems the “solutions” implemented by the Ivy League MBA financial elite bankers and bureaucrats have had the desired result – enrichment of the criminal class who financialized the nation. The establishment and their media propaganda machine have somehow convinced a vast swath of Americans to believe that record profits accruing to the largest corporations in the world and stock market gains accruing to the 1% are beneficial to their lives. It’s a testament to the power of propaganda that people can be convinced to cheer on their own downfall as they are dehumanized and enslaved by the plantation owners who run this country.

“Crime follows money like a shadow. The more money there is within a society, the greater are its social inequalities. Financialization dehumanizes human relationships by reducing them to a question of numbers printed on pieces of paper, and a blind calculus for manipulating these numbers mechanically; those who take part in this abstract dance of numbers dehumanizes others and, in turn, lose their own humanity and can go on to perform other dehumanizing acts. Money is, in short, a socially toxic substance.” – Dimitri Orlov – The Five Stages of Collapse

There is no more revealing statistic than real median household income to gauge the winners and losers from the financialization and dehumanization of America. The real median household income of $52,100 is still 8% below the early 2008 level of $56,600. It is still 5% lower than it was in 1999, before the Federal Reserve/Wall Street bubble blowing wealth destruction machine really got going. In fact, real median household income has only risen 9% in the last 35 years. Prior to that, most families could live comfortably with only one spouse working. I’d be remiss if I didn’t point out that these calculations are based on the fraudulently manipulated CPI figures which are understated by at least 3% per year. Using a true measure of inflation would reveal median household income to be lower today than it was in the mid-1960s. The bottom 80% have seen a decline in their standard of living since the mid-1960s as inflation has robbed them of purchasing power and the financial elite have skimmed the cream off the top of our economic system. The economic gains have accrued to the top 5%, with astronomical gains being amassed by the .1% ruling elite, who have rigged the game in their favor through laws written by their lobbyists, regulatory shenanigans, tax code manipulation, and buying off politicians. Thank you Bob Rubin, Larry Summers, and Phil Gramm for repealing Glass Steagall and stopping any regulation of financial derivatives. Where would the country be without those two courageous acts on your part?

Those in control of the system have succeeded beyond their wildest dreams as 72% of all the wealth in the US is held in the hands of 5% of the population, with 42% of this in the hands of the top 1%. The top 1% now “earn” over 20% of all the income in the U.S., a level exceeded only once before in the 1920s prior to the Great Crash of 1929 and ensuing Depression. During the heyday of middle class upward mobility, from 1950 through 1970, the top 1% earned 10% of all income. Today, the top 1% is dominated by debt peddling bankers creating derivatives of mass destruction, hedge fund egomaniacs in collusion with bankers to syphon capital away from productive ventures, mega-corporation job destroying executives, entertainment personalities, and shyster lawyers preying on the weak and feeble minded. Our insane society heaps accolades on these rich and famous narcissists, who add no value, produce nothing, create economic havoc, and drain the lifeblood from the dying carcass of a once great nation. The nearly extinct middle class owes their fate to the malevolent men that turned the country into a gambling casino of debt, derivatives, delusion and dreams of jackpots that will never materialize. The bankers and their cronies run the casino and the house always wins, as the chart below confirms.

wealth-change-epi

It is mind boggling that we have allowed ourselves to be brainwashed by the ruling class about the tremendous benefits of globalization, efficiency, productivity, and profitability. When academia, the mass media, and government leaders use their power and influence to convince the masses that ever higher mega-corporation profits benefit the well-being of the country, you end up where we are today. Globalization was nothing more than a scheme by our biggest corporations to use labor arbitrage as a way to increase profits. As American jobs were disappeared overseas to countries that allow slave labor conditions and wages, median household income declined.

The banking cabal stepped to the plate and convinced the increasingly poorer middle class to replace that lost income with easily accessible debt. Just whip out that credit card and use your house as an ATM and you still give the appearance of increasing wealth. You might be in debt up to your eyeballs but, by God, at least the neighbors would think you were doing great. Until the foreclosure sign went up in front of your house in 2009. The marriage of corporations outsourcing American jobs to China with consumer debt peddled by the predator banks was a match made in heaven until the country ran out of decent paying jobs, one in six people was on food stamps, and the average middle class family was drowning in debt. People are beginning to wake up to the fact that corporate efficiency and productivity means firing American workers, cutting benefits, and bigger bonuses for corporate executives as their stock price is boosted by the announcement of more layoffs. The country has been gutted by the predator class in their unquenchable thirst for more. Human nature never changes. Greed, desire, avarice and stupidity will always rear their heads, leading to predictable outcomes.

“Indeed, it had not – not when the nation’s most sophisticated corporate financiers and their accountants were constantly at work finding new instruments of deception barely within the law; not when supposedly cool-headed fund managers had become fanatical votaries at the altar of instant performance; not when brokers’ devotion to their customers interest was constantly being compromised by private professional deals or the pressure to produce commissions; and not when the style-setting leaders of professional investing were plunging as greedily and recklessly as any amateur.” – John Brooks

The psychopaths controlling this country have fashioned untenable financial conditions by further weakening an already structurally deficient economic structure that will result in an epic flood of financial destruction destined to destroy the lives of millions in the U.S. and around the globe. Those who put their faith in financialization and interconnected globalization will reap what they have sowed. We will all feast at a banquet of consequences. Encouraging central bankers across the world to print trillions of fiat currency out of thin air as the solution to our debt problem is the ultimate in idiocracy. The unsustainability of this scheme should be evident to even an Ivy League economist. But the dimwitted government apparatchiks, overeducated economists, greedy corporate executives, vacuous media talking heads, and intellectually dishonest journalists cheer on Ben Bernanke and his central banker brethren.

When you see a Bloomberg bimbo interviewing an Ivy League Wall Street economist about the tremendous merits of QE to infinity, you have a millionaire interviewing a multi-millionaire, with both working for corporations owned by billionaires. Their jobs depend upon the sustenance and further enrichment of the establishment. Therefore, they will lie, obfuscate and mislead their audience about the criminality of their bosses and the true consequences of these crimes against humanity. The existing hierarchy will not willingly surrender their control, power and illegitimately acquired wealth. Only the process of economic collapse, war and revolution will end their reign of terror.

We’ve seen it all before. The cycles of human history have provided us with centuries of proof that a few evil men can gain control over a civilization and procure an inordinate amount of wealth and power before ultimately relinquishing it due to their myopic pathological desire to acquire more. Powerful wealthy narcissists are never satisfied with what they have. Their arrogance and hubris will always be their downfall. Their foolish belief in their own omniscience reveals their true ignorance. Their enormous egos and confidence in the linearity of history blind them to their impending demise. Time is no longer on their side. A reckoning will happen within the next decade. Their gated communities and penthouse doormen will not keep them safe.

The American people cannot shirk their responsibility for this ongoing tragedy. The evil men could only pull off this bank heist with the silent consent of the governed. And that is exactly what has happened. The American people have been gradually persuaded through propaganda and fear to willingly give up freedom, liberty and self-responsibility for safety, security and government provided succor. Over the last forty years the Americans people have allowed themselves to be enslaved in debt by bankers, corporations and politicians, who realized all the riches, while binding the citizens in chains made of credit cards and mortgages. Now that the system has reached its breaking point and the further issuance of debt no longer generates the appearance of growth, the ruling class have resorted to more authoritarian measures, all done in the name of protecting us from phantom terrorists and evil dictators. It’s for the children.

Decisions about our economy are made in secret meetings by unelected officials and with sparse details announced with great fanfare by the corporate media. The President, with the full support of the military industrial complex, chooses which dictators are evil and which are good, with each being interchangeable depending upon the circumstances. The iron fist of American democracy attacks countries at will, without a declaration of war as mandated by the U.S. Constitution. Twenty five hundred page laws, indecipherable reams of regulations, and 60,000 pages of tax code are rammed down the throats of Americans without the benefit of even a debate. Each crisis caused by the previous government solution is met with more laws and regulations, designed and written by the very entities they were supposed to control. The farce of party politics is used to give people the appearance of choice, when there is not an iota of policy difference when the opposing party assumes power.

The people are told every situation is too complicated for them to understand and they should let the “experts” solve the problems. Every authoritarian measure used to control dissent among those capable of thinking is done in the name of national security. Edward Snowden is declared a traitor for revealing the traitorous actions of our own government, and the people silently consent. The head of the NSA is caught lying to Congress, and no one cares. The Department of Homeland Security locks down one of the biggest cities in America looking for a teenager and the people cower and beg Big Brother for more protection. The NSA and other secretive government agencies treat the 4th Amendment like toilet paper, and the people feebly respond by breathlessly texting, twittering and facebooking about Anthony Weiner’s cock. The U.S. military desensitizes the masses by conducting live fire exercises in American cities, and the people just change the channel to Bridezillas or I Didn’t Know I Was Pregnant.

Each new economic “surprise”; each new foreign “threat”; each new government “solution” is met with secrecy, spin, and no avenue for the people to impact the decisions made by our owners. The people no longer matter. They can’t change the course of the country through legal means or the ballot box because the system has been captured. It has happened before. The American people are under the mistaken impression we are free. That boat has sailed. Our economic, financial and political systems have been usurped by malicious men posing as gangsters in this saga. We have allowed this to happen. We mistakenly put our trust in bankers, academics and politicians and will suffer the consequences of our choices, just as the German people experienced during the last Fourth Turning.

“What happened here was the gradual habituation of the people, little by little, to being governed by surprise; to receiving decisions deliberated in secret; to believing that the situation was so complicated that the government had to act on information which the people could not understand, or so dangerous that, even if the people could not understand it, it could not be released because of national security.

Each step was so small, so inconsequential, so well explained or, on occasion, ‘regretted,’ that unless one understood what the whole thing was in principle, what all these ‘little measures’… must someday lead to, one no more saw it developing from day to day than a farmer in his field sees the corn growing…. Each act… is worse than the last, but only a little worse. You wait for the next and the next. You wait for one great shocking occasion, thinking that others, when such a shock comes, will join you in resisting somehow.” – Milton Mayer, They Thought They Were Free, The Germans 1933-45

In the fourth and final installment of this seemingly never ending treatise on a world gone insane, I’ll address how the disintigration of trust will ultimately lead to a collapse of the worldwide Ponzi scheme and how the collapse could lead to a rebirth of a society built upon family, community, cooperation, local commerce, compassion, freedom and liberty. I can dream, can’t I?

Now Why Don’t They Shop?

Off the keyboad of RE

 

Discuss this article at the Kitchen Sink inside the Diner

As regular Diners know,  I had some Bizness in Anchorage this weekend and decided to make a Mini-Vacation of it and liberate some of my Hoarded FRNs into the economy by buying an Expensive Hotel Room at the Captain Cook 4 Star Hotel and Haute Cuisine at the Crow’s Nest restaraunt atop the 20th floor of Tower 3.  My Suite was in Tower 1 on the 6th floor.

One day of Luxury 1% Living here cost me about $3oo, $200 for the Suite, $25 to park the car and $80 for the meal.  Oh, also $18 for a 12 pack of Alaska Amber IPA I brought in.  In theory, spending this money keeps the Hotel Clerks and Maids and the Restaraunt Staff employed, so I am doing a Good Deed by Living the High Life.

This time of year, the Hotel is not too busy of course, but there are some Biz types milling around the Lobby floor Mini-Mall with its high end Tourist Trinket Shops.  There is some kind of Real Estate Convention group having a Banquet in a couple of the Banquet Rooms.  I spy also a group of aound 5 Older Pilots in their Ailine Pilot Uniforms with the Epaulets.  So Cap’n Cook is getting some Biz here even though it is not Tourist Season yet for Alaska.

At Dinner also atop Tower 3, the Crow’s Nest is also decently filledup with Biznessy Types,  I earball a conversation at the next table about some kind of Robotic development the guy is describing to two corp type women,they are all in their 40s maybe 50s.  Looking around the restaraunt, all the Diners have that distinctly Upper Class “look” to them.

Not only the Diners look Upper Class, the Wait Staff does also, just Younger and Prettier/Handsomer.  My first server is the Busboy, who looks like he came right off the pages of GQ Magazine.  He is super polite bringing me a choice of breads and icewater.  My waitress who follows is only slightly less Model Material than the Busboy.  Down at the Desk when I checked in, the two Clerks were both Black,  a male and female also.  Both awesome good looking people also in their 20s, well spoken and mannered. There are not too many Black people in Alaska, so where did these two come from?  Later atfer a Shift change, there are TWIN Phillipino male 20 somethngs behind the desk, also good looking fellows.  Sense a pattern here?  LOL.  Somehow the management of Captain Cook is able to recruit and hire a really good looking and “exotic” staff to please the eye of the Upper Class patrons of the Hotel.  They ae NOT coming from Local Alaska people.

I’ll jump ahead in the story here to Contrast with the Employees and Patrons at Walmart/McDonalds where I stopped on my way back to the Cabin today.  About everybody working there or sitting eating looks like some variant of what we call “Valley Trash” up here.  They are in the same general age range as the staff at Cap’n Cook, but they are about all, well, UGLY.  Evenif they aren’t  fat, nobody is Model Material here.  By contrast, EVERYBODY working at Cap’n Cook was at least close to that level of Physical Beauty.

I can see here where anyone living the life of the top 1% doesn’t see anythig wrong at all.  The Hotel Amenties are nicey fit out with Wood Paneling everywhere givng an old time Nautical feel to the place,, the food is excellent and the prices seem like Chump Change to them, and the staff is all polite and pleasing to look at.  When was the last time you had a polite pleasing to look at McDonalds Cashier bring you your Burger, Fries and Coke?

There are two completely separate class of people operating here, and really unless you hit a hotel like Cap’n Cook you don’t see it.  Even if you go to some of the other “nicer” hotels serving the Tourist Trade in Alaska like Hilton you don’t get quite the same effect.  My guess is that while some of these Hotels might be hurting from dominished Middle Class Tourist Trade, Cap’n Cook is still doing pretty good.  The 1% are still buying the most expensive Hotel Rooms and expensive meals, and they can jack up prices and it stll doesn’t make much difference to the patrons.  If spending $200/night doesn’t bug your pocketbook, $300/night probably won’t either.  The Oil Companies still put up visiting Executves on Expense Accounts at these places and Write it Off on the Tax Bill.

So, the 1% is still “Shopping” here and keeping employed Wannabee Models, Actors and Actresses making Ends Meet until they get “Discovered” or end up as a Trophy Wife #3 for some travelling Pigman.  Unfortunately though, freely flowing Buckolas in this Boutique Economy does not translate to similar freely flowing buckolas in the Shop-till-you-Drop general economy, well represented by my stop off at Walmat/McDonalds on the way back home.

Prior to grabbing my meal at the In-Store McDonalds food court,  I traipsed around the aisles of Wally World looking for Prep Bargains, and they were there aplenty, particularly in the clothing department.  Being Alaska is a pretty cold place in the winter, I have a soft spot for Warm Clothing, and when I see some on Sale I fnd it hard to resist buying more than I aready have, which is a lot.

Well, first there was long sleeve Thermal Undershirts for $7 each in a variety of colors.  This is less than a pack of cigarettes cost up here  nowadays. So I throw a Black one and Blue one in the basket.  Then there are some Lined Hoodies on Sale for $15 each.  Thow a Blue and Gray one in the basket.  Then some Sweatpants which make nice warm Pajama bottoms for $7 also.  Then I pass Winter Coats and there are some on Clearnace for $15.  FIFTEEN DOLLARS for a WINTER COAT!  BRAND SPANKING NEW!  Man, I remember my Mom spending $150 for the Parka I had in HS back in the 70s I badgered her into buying for me.  Granted, that one had real Goose Down Fiing and real Rabbit Fur trimming arond the Hood, but even so most Winter coats in those days ran $50 at least.  These coats perform he sae function, are just abut as warm and $15 2013 Dollars, which according to Inflation Stats transltes to maybe $7.50 1970s dollars.  IOW, there is not, has not been Inflation in Clothing Prices since the 1970s.  Same wth Jeans, I remember spending $25 for Jeans back then, now wen I buy new ones, I usually spend only $15-20 on them.

So here I am in the Walmart Clothing Department with my now overflowing basket of clothing to keep me warrm on Cold Alaska Nights, all of which together costs less than I spend on Beer and Cigarettes in a Week and I STOP.  “WTF do I NEED this stuff?”  I DON’T!  I got warm clothes up the WAZOO already!  I leave the Full Basket right there for the Walmart Night Staff to Restock and leave with my one purchase, a 16GB MicroSD Card to drop a copy of my ever increasing Library of ebooks I am downloading fr $40 for  month of UNLIMITED downloads.  If this isn’t DEFLATION in the cost of Knowledge and Books,  I don’t know what is.  Even Paperbacks in the 70s cost $2.95 each.  Now,even factoring in the $250 cot of the Samsung Galaxy Tablet, the 16GB MicroSD Card and the $40 Monthly Membership fee of UNLIMITED downloads, the MOST I could have bought was 100 or so paperbacks.  Instead, I have 1000s of books already, some vey exnsive textbooks and Hypelinked as Help Files in some cases too!  Not to mention the Audio Books, not ven vailable to buy in the 70s at any price.

Now is where this really gets good though.  With all those fabulous BARGAINS in Clothing and Knowledge/Infomation availble,  why aren’t the Shoppers PACKING Walmart and D/L all those great book.  Answers slightly different though the commonality is that people don’t NEED any more of these things but they keep being produced in greater numbers all  the time.  Even with increasing poplation numbers we have WAY more clothes than anybody needs, here in the FSoA for sure on this one.  I could fully clothe probably 5 people ou of stuff in my wardrobe.  Do we NEED more Books?  Man, there is more Great Literature already written than anyone could read in a LIFETIME, and you can squeeze all of it onto a MicroSD Card the size of your FINGERNAIL.

So on the one hand we have vast overproducton of these things,while at the SAME time the expanding population has ever decreasing per capita MONEY available to buy them, and stops buying so many.  Between India, China and Egypt all producing gobs of clothing with Slave Labor, the stuff is stocking up in Walmart, they are running Outta Room and cutting Low Low Prices Everyday even lower, and STILL nobody buys it! So obviously at some point here the factories producing tthis clohing will go outta biz, which will then leave MANY even MORE unhappy and impoverished Chindians than there already are.

As you walk through Walmart and sit at a formica covered table in Walmart surrounded by generally poor,  stupid and ugly people, you get  sense of depair in everyone there.  They aren’t  going anywhere in life other than deeper in debt if it is offered to them, they’ll never be hanging out even for a night in  Cap’n Cook Suite and eating Thai Coconut-Curry-Crab soup and Elk Rack in the Crow’s Nest, obsequiously served by the Beautiful People.

As I left Walmart, even the “Missng Childen” board Walmart runs which substitutes for the Milk Carton ads was depressing in a new way to me as I  scanned it.  The “kids” pictured  appeared to be mostly Teens, and the photos looked like Mug Shots from Juvey.  Teen girls wth Piecings and Bleach Blond hair,  Teen Boys with Bue Mohawks and Angry Looks on their faces.  A few Kidnap victms in there perhaps, but mostly I think Runaways, kids whose home lives were so vacant of Hope and Opportunity they just Left  School one day and never went “Home”.  Absorbed somewhere in the vast Underbelly of a decaying and dying society, until  almost mecifully an Early Death from Drug Overdose or Violence takes them to a Happier Place in the Great Beyond.

  For most of the 1% at Cap’n Cook, they never see any of this.  They simply don’t SHOP at Walmart.  Life seems just fine to them,well insulated by layers of money, well served by the Beatiful People  who if fortunate can leverage their Looks into the Upper Class before they lose them.  They are still Shopping at the Top, but that too will pass in the Bye & Bye.  The Shopping is Stopping down below, and this will collapse the foundation of the Waste Based Society that Feeds the Rich, while it Buries the Poor.  As Axel Rose noted, it can only end in Civil War.

RE

On Dignity and Comparative Wealth

Repost from another part of the Topic For Discussion debate on Economic Undertow, this time trading ideas with Sandor.

Discuss this further inside the Diner

Re

Sandor says:

I like the platform, however I doubt that more than 5% of Americans will. The culture rejects the notion of ‘limits’ and ‘you can’t do that’. Responsibility may be the root virtue, but our culture misinterprets this concept as ‘guilt’ or ‘lawsuit’ or ‘superiority’.  Most Americans eschew the idea of responsibility from the get-go. They want to be irresponsible, to consume 25% of the global energy supply, and face no consequences. Even the Occupy Wall Street crowd doesn’t get it. They seem to think that all deserve $20/hr because they are… American. Never mind the $2/day laborer in India.

There are several third parties in this country already. Why are they marginalized in a ‘free press’ culture? Inertia, herding instinct, the embedded value of money channeled through familiar channels. Most Americans are not idealists or philosophers. They want their goodies. Now they want their jobs back. But not at $5/hr. That’s ‘unfair’. The first step I’ve taken with other Americans is to suggest boycotting all Democrats and Republicans, period, no exceptions. If you do that, then you have to start *thinking* beyond throwing the light switch on or off. If you can get that far, then start talking about the dangerous and seductive lie of perpetual ‘growth’.

I actually think if you can write an entertaining screenplay for a risk-taking, savvy Hollywood producer starring teenagers or superheroes that introduces these concepts and follows the thoughts through, you will have a far greater effect on the political discourse of the future than trying to jumpstart a better Tea Party.

  • “Even the Occupy Wall Street crowd doesn’t get it. They seem to think that all deserve $20/hr because they are… American. Never mind the $2/day laborer in India.”-Sandor

    No, I think 99%/OWS/J6P feels he deserves $20/hr because Jamie Dimon takes home $20,000/hr.  If the economy is structured so you NEED $20/hr just to meet the bills, then yea J6P deserves that for his work.

    What does $20/hr buy you Sandor?  That translates to around $40K/year, of which you lose $10K right off the top in taxes.  Then pay your medical insurance, fuel bills yadda yadda and if you can make ends meet without going into debt you are doing pretty good.

    The economies of places like Egypt where people subsist on $2 a day are entirely different in structure.  If that is what J6P will be paid here, your RE valuations are going to have to drop [b]substantially[/b], more than an order of magnitude since they are already unaffordable at $20/hr.  Really, you couldn’t even FEED yourself here on $2/day, even buying the cheapest foods on the Walmart Shelves.

    Not saying that J6P would be happy living on a $2/day wage, but he might live with it if Lloyd Blankfein is not out there pulling down $20K/hr for sitting on his ass and losing taxpayer money.  Inequitable Wealth distribution is the driver behind the $20/hr “demand” of OWS/J6P.

    As long as there is enough wealth out there, EVERYBODY deserves a wage that will allow them to live with some dignity inside their economic system.  A system which allows a few to take great wealth at the expense of the many is not sustainable, and will not be sustained.  Count on it.

    RE

    • Sandor says:

      My point is that OWS is using the wrong metric. It doesn’t matter what Jamie Dimon makes. It doesn’t matter that there are billionaires. What matters is how many people are on the planet, how much energy needs to be converted to maintain the ‘dignity’ you speak of for all 7 billion people. The unemployed living off the govie dole in the USA have it better than billions of ‘hard-working’ people on the planet. If by dignity you mean a job that doesn’t involve indentured servitude, there are plenty of places in the world where one can apply physical labor for 8-12 hrs a day every day of the year and live a subsistence lifestyle with ‘dignity’.

      OWS doesn’t get it. Americans, for the most part, have elevated expectations of ‘dignity’. That’s all fine. Aim high, etc. It’s all about ‘fairness’ until you start talking about the $2/day Indian. Then the concept of ‘fairness’ goes right out the window. It’s shortsighted and hypocritical. If there are more people than an economy needs, the people need to move, or they will have to be fed the scraps. And paying people not to work breeds a dependent underclass of people who lose hope in themselves.

      I have no objections to a Swedish style system with far greater income equality. But even they have wealthy industrialists. Income redistribution in and of itself is not the answer. The values of the culture have to change. American workers don’t want income ‘equality’. Not really. If they did, they wouldn’t vote for the clowns who hand out tax breaks to corporations and millionaires. Most Americans have refused to engage the issue of overconsumption and energy waste. And even many who do continue to support the corporatocracy because they ‘have to work with the system to get anything done.’ Steve’s Responsibility Party wants to get people to say ‘the (binge) party’s over’ while the music still plays and the booze flows. Buzzkill. Chicken Little doesn’t score big points in the USA until the sky falls. Americans will probably have to hit bottom before a third party is welcome with open arms.

      • “My point is that OWS is using the wrong metric. It doesn’t matter what Jamie Dimon makes. It doesn’t matter that there are billionaires. What matters is how many people are on the planet, how much energy needs to be converted to maintain the ‘dignity’ you speak of for all 7 billion people.”-Sandor

        It DOES matter what Jamie Dimon makes.  1 person making $10M/yr is the equivalent of 1000 people making $10K/yr.  People who see that and the wasteful and consumptive lifestyles of the rich and famous don’t see why they should not have a piece of this pie also.  Your not going to encourage conservation when those at the top waste the most.

        Dignity is a relative thing in a society.  In a poor farming community in the 3rd world, you live a dignified life if you have a hovel to sleep in and can keep a decent part of the produce from the land you work.  You do not live a dignified life if its taxed from under you or you can’t sell the produce at a price which allows you to buy the other items a dignified life requires in that society, like clothes.  Some societies don’t even require clothes to live a dignified life, but they are few and far between these days of course.

        Inside the society created during the Age of Oil, a dignified life meant having a house powered by electricity with a refrigerator to preserve food and hot and cold running water and flush toilets.  I remember when I was a kid recently returned from Brasil when we didn’t have a car.  To get our groceries, my mom would walk 6 blocks pulling a shopping cart.  Relative to the norm around us, this was undignified.

        In my mother’s youth, she lived in a cold-water tenement on the lower East Side of New York, and her mother ran a rag shop to make ends meet during the Great Depression.  Relative to the Fat Cats on the Upper East side, they were living an undignified life.

        Cross culturally speaking, obviously we cannot all afford the energy required to live a dignified life by the standards of the Age of Oil, the problem would be working the society back toward a situation where living in cold water flats and pulling your groceries in a shopping cart is relatively dignified.  This is not going to be the case if right under your nose the Elite of your society a Globe Trotting in Gulfstream V Private Jets, so what the 1% STEALS here is very important.

        Before you can lower the expectations of the society as a whole, the leadership of that society needs to come back down to earth and land those Private Jets.  Until then, J6P will EXPECT a $20/hr wage to live a dignified life in this society.

        RE

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‘Tis the season for the hole in the ozone layer to undergo its annual growth spurt in the skies high above Antarctica. It’s still early days, but scientists say this year’s version is behaving unusually and that it has the potential to be the smallest...

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