That which is unsustainable will pass away and be replaced with a more sustainable arrangement. That is the crisis and the opportunity.
"Never let a crisis go to waste" need not be the exclusive agenda of the Power Elite/ parasitic Aristocracy: it could be the agenda for the rest of us, i.e. the debt-serfs. If you are unfamiliar with the neofeudal/neocolonial financialization model, please read The E.U., Neofeudalism and the Neocolonial-Financialization Model (May 24, 2012). The same dynamics apply to the American Empire and domestic economy.
My definition of Neoliberal Capitalism differs significantly from the conventional view: markets are opened specifically to benefit the Central State and global corporations, and risk is masked by financialization and then ultimately passed onto the taxpayers. In this view, the essence of Neoliberal Capitalism is: profits are privatized but losses are socialized, i.e. passed on to the taxpayers via bailouts, sweetheart loans, State guarantees, the monetization of private losses as newly issued public debt, etc.
Off a cliff, even as productivity has risen smartly:
Here is GDP, expanding on the back of Federal borrow-and-blow deficit spending:
Gee, the financial Aristocracy seems to be skimming all the productivity gains; they certainly aren't flowing to the wage earners:
Productivity per worker keeps increasing--where is the net going?
Not to the wage earner households:
As I have endeavored to explain this week, this financialization of the economy is the direct result of Federal Reserve and Federal government policies. The fact that gains in productivity are not flowing to wage earners is not some mysterious warp of space-time--it is the direct consequence of the Fed's financialization of the economy, supported by the political Elites of Federal government.
NEW VIDEO: A DELUSIONAL & DYSFUNCTIONAL STATE (29 minutes, 25 slides), CHS with Gordon T. Long:
Things are falling apart--that is obvious. But why are they falling apart? The reasons are complex and global. Our economy and society have structural problems that cannot be solved by adding debt to debt. We are becoming poorer, not just from financial over-reach, but from fundamental forces that are not easy to identify or understand. We will cover the five core reasons why things are falling apart:
1. Debt and financialization
2. Crony capitalism and the elimination of accountability
3. Diminishing returns
5. Technological, financial and demographic changes in our economy
Complex systems weakened by diminishing returns collapse under their own weight and are replaced by systems that are simpler, faster and affordable. If we cling to the old ways, our system will disintegrate. If we want sustainable prosperity rather than collapse, we must embrace a new model that is Decentralized, Adaptive, Transparent and Accountable (DATA).
We are not powerless. Not accepting responsibility and being powerless are two sides of the same coin: once we accept responsibility, we become powerful.
Kindle edition: $9.95 print edition: $24 on Amazon.com
To receive a 20% discount on the print edition: $19.20 (retail $24), follow the link, open a Createspace account and enter discount code SJRGPLAB. (This is the only way I can offer a discount.)
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