Monday, September 21, 2020

Inflation and "Socialism-Lite" Are Just What the Billionaires Want

After a bout of inflation and "socialism-light", we could end up with even more extreme inequality when the whole rotten structure collapses.

Imagine owning a Buffett-Bezos fortune of bilious billions, or even 10% of these mega-fortunes, i.e. between $5 billion and $20 billion. Heck, imagine owning 1% of these mega-fortunes, i.e. $500 million to $2 billion.

You're extremely rich so you can buy the best advice. Your capital is mobile, and so are you. You can live anywhere and shift your capital anywhere.

Your advisors have noted an increase in media chatter on inequality, for example: The Bill for America's $50 Trillion Gluttony of Inequality Is Overdue, and they're busy preparing plans to weather the storm and preserve your fortune come what may.

It's all too obvious that a claw-back of the trillions plundered by America's 0.1% is now inevitable as the pendulum has swung to extremes of looting and parasitic predation that have destabilized the social and economic orders. So Job One is managing this claw-back politically and financially to leave the fortunes of the super-wealthy either unscathed or even more magnificent after the dust settles.

The super-wealthy have two key weapons at their disposal: inflation and "socialism-light." Once the world's governments borrow and spend enough money supporting all the insiders, bread and circuses for the masses (Universal Basic Income) and giveaways to industry and construction (under the happy rubric The New Green Deal), inflation will be roaring higher in no time.

What happens in runaway inflation? Tangible assets soar: land, timber, railroads, gold, mining companies and stocks of truly profitable enterprises (not zombies propped up with debt and bogus "profits" ginned up by accounting tricks).

What do the super-wealthy own? Land, timber, railroads, gold, mining companies and stocks-- all the tangible assets that will maintain or increase their value in runaway inflation.

(Recall that "inflation" is not one dynamic; many are protected and others actually gain while the masses are impoverished: "Inflation" and America's Accelerating Class War 9/18/20.)

"Socialism-light" is equally beneficial to the super-wealthy. "Socialism-light" is my term for the Aristocracy's management of the extreme inequalities of wealth, income, power and privilege. The basic idea of "socialism-light" is to spread a thick layer of gooey PR over the same old system of legalized looting, parasitic exploitation and neofeudal predation and then have the government borrow endless trillions to fund bread and circuses for the masses (Universal Basic Income).

The irony will not be lost on the super-wealthy. As the state borrows endless trillions to send every household $1,000 a month, this borrow-and-spend orgy will push inflation higher, stripping away the purchasing power of the household's income.

In no time at all the $1,000 in "free money" will only buy $500 of goods and services. The cries for "more stimulus" will reach a crescendo and the bread and circuses will double to $2,000 a month.

But this money-printing-to-the-moon will only increase real-world inflation (as I explained in This Is Why Inflation Will Rip Everyone's Face Off 9/17/20), so the end result will be the $2,000 only buys $200 of goods and services.

Meanwhile, the super-wealthy are minting fortunes as everyone desperately seeks a hedge against inflation, which is wiping out cash, low-interest bonds, etc.

Banks--a core source of wealth and power for the super-wealthy--also anticipate this, which is why they immediately sell all the loans they originate to pension funds, sovereign wealth funds and other bagholders whose losses will be stupendous once inflation shreds the value of low-interest rate debt.

Banks won't be able to survive unless they 1) grab the most valuable collateral underlying their loan portfolios and 2) move their lending into short-term debt so they can jack up interest rates to match inflation.

Meanwhile the gooey, easily digestible PR will include a "wealth tax" that ends up being a pinprick on the total wealth of the super-wealthy who have sequestered their wealth in philanthro-capitalist foundations that are nothing but power grabs by other means, and various other forms of legalized looting.

The "wealth tax" will end up stripmining professionals and entrepreneurs, not the super-wealthy. Those earning $1 million with a net worth of $20 million will be gutted, while those worth $5 billion will pay a pittance. This is the inevitable result of the best government money can buy.

Eventually the entire house of cards collapses and if there is no replacement of the current political power structure that actually changes the way currency is created and distributed, the pathways to ownership of capital and labor's share of the economy, then the system will simply return to the existing inequality with a new currency.

As I often say: if you don't change the way money is created and distributed, you've changed nothing. If you don't change the means of acquiring capital and political power, you've changed nothing. If you don't change labor's share of the economy, you've changed nothing.

Money-printing, inflation and "socialism-light" are just what the super-wealthy ordered: so by all means spark runaway inflation with "free" (heh) bread and circuses, provide trillions in "stimulus"to corrupt insiders, industry giveaways (New Green Deal, carbon credits, etc.), and slap a feel-good "wealth tax" that mysteriously misses the super-wealthy but guts the tattered remains of the productive class.

After a bout of inflation and "socialism-light", we could end up with even more extreme inequality when the whole rotten structure collapses. Be careful what you wish for and cui bono--to whose benefit? To answer that, look beneath the gooey layer of PR.

It doesn't have to be this way. My new book outlines a much different way of organizing capital, labor and the creation of money: check out the free bits: Excerpts of the book (PDF) The Story Behind the Book and the Introduction.







My new book is available! A Hacker's Teleology: Sharing the Wealth of Our Shrinking Planet 20% and 15% discounts end September 30 (Kindle $7, print $17)

Read excerpts of the book for free (PDF).

The Story Behind the Book and the Introduction.



Recent Podcasts:

AxisOfEasy Salon #22: When the going gets weird, the weird turn to YouTube (1 hr)
<

My COVID-19 Pandemic Posts


My recent books:

A Hacker's Teleology: Sharing the Wealth of Our Shrinking Planet (Kindle $8.95, print $20, audiobook coming soon) Read the first section for free (PDF).

Will You Be Richer or Poorer?: Profit, Power, and AI in a Traumatized World
(Kindle $5, print $10, audiobook) Read the first section for free (PDF).

Pathfinding our Destiny: Preventing the Final Fall of Our Democratic Republic ($5 (Kindle), $10 (print), ( audiobook): Read the first section for free (PDF).

The Adventures of the Consulting Philosopher: The Disappearance of Drake $1.29 (Kindle), $8.95 (print); read the first chapters for free (PDF)

Money and Work Unchained $6.95 (Kindle), $15 (print) Read the first section for free (PDF).



If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com.




NOTE: Contributions/subscriptions are acknowledged in the order received. Your name and email remain confidential and will not be given to any other individual, company or agency.

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Sunday, September 20, 2020

The Bill for America's $50 Trillion Gluttony of Inequality Is Overdue

The battle to claw back a significant percentage of the $50 trillion is just beginning.

Do you hear the pathetic bleating of America's billionaires and their army of toadies? If not, you soon will, for a remarkable report has been released that documents the $50 trillion in earnings that's been transferred to the Financial Aristocracy from the bottom 90% of American households in the past 45 years.

The report was prepared by the RAND Corporation, and has a suitably neutral title: Trends in Income From 1975 to 2018. (The full report can be downloaded for free.)

Just as remarkable is the no-holds-barred coverage of the study by Time magazine, an iconic publication of the mainstream media: The Top 1% of Americans Have Taken $50 Trillion From the Bottom 90% -- And That's Made the U.S. Less Secure.

Longtime readers know I've reported on the astounding increase in America's economic inequality for the past 15 years, and addressed the eventual banquet of consequences this imbalanced, destabilizing state of affairs will serve up.

But with few exceptions, the corporate media has ignored this fundamental reality of American life, and blown off the consequences as easily ignored speculation by marginalized bloggers and commentators. ("Would somebody please shadow-ban these sites going on and on about soaring inequality? Thank you, Facebook, Google and Twitter--we'll return the favor directly.")

The extreme rarity of paragraphs like these in the corporate media cannot be over-emphasized. The corporate media has carried water for the billionaires and America's Financial Aristocracy for decades. (No surprise, given that the vast majority of America's media / social media is owned by the billionaires and Financial Aristocracy. Why bite the hand that feeds you, especially when the risk of losing your career is so high?)

Excerpted from the time.com article linked above:

There are some who blame the current plight of working Americans on structural changes in the underlying economy--on automation, and especially on globalization. According to this popular narrative, the lower wages of the past 40 years were the unfortunate but necessary price of keeping American businesses competitive in an increasingly cutthroat global market. But in fact, the $50 trillion transfer of wealth the RAND report documents has occurred entirely within the American economy, not between it and its trading partners. No, this upward redistribution of income, wealth, and power wasn't inevitable; it was a choice--a direct result of the trickle-down policies we chose to implement since 1975.

We chose to cut taxes on billionaires and to deregulate the financial industry. We chose to allow CEOs to manipulate share prices through stock buybacks, and to lavishly reward themselves with the proceeds. We chose to permit giant corporations, through mergers and acquisitions, to accumulate the vast monopoly power necessary to dictate both prices charged and wages paid. We chose to erode the minimum wage and the overtime threshold and the bargaining power of labor. For four decades, we chose to elect political leaders who put the material interests of the rich and powerful above those of the American people.


That this level of incendiary outrage is now seeping into the mainstream media tells us that the bill for America's $50 Trillion gluttony of inequality is long overdue and the pendulum of reckoning will swing to political, social and economic extremes equal to the extremes of wealth and income inequality engineered by America's Financial Aristocracy and their toadies / lackeys in government, the Federal Reserve, Wall Street, Silicon Valley and the media.

The rallying cry to claw back a significant percentage of the $50 trillion is just beginning. The billionaires have the money and power, of course, and the best government that money can buy plus the loyalty of a vast army of well-paid toadies, lackeys, factotums and apparatchiks.

But once the citizens no longer accept their servitude, the pendulum will gather momentum. America's Financial Aristocracy has reached extremes not just of wealth-income-power inequality, but extremes of hubris. Their faith in luxury bug-out estates / private islands is evidence that even if the way of the Tao is reversal, they'll have their private bodyguards and stashes of fuel and other essentials.

The clawback might not be as easy to rebuff as they anticipate, nor will the pendulum swing that's just starting necessarily arrive at the opposite extreme in the orderly, predictable fashion they're accustomed to controlling.

Here's a few of the many charts you've seen over the years here that illustrate rising inequality:







My new book is available! A Hacker's Teleology: Sharing the Wealth of Our Shrinking Planet 20% and 15% discounts end September 30 (Kindle $7, print $17)

Read excerpts of the book for free (PDF).

The Story Behind the Book and the Introduction.



Recent Podcasts:

AxisOfEasy Salon #22: When the going gets weird, the weird turn to YouTube (1 hr)


My COVID-19 Pandemic Posts


My recent books:

A Hacker's Teleology: Sharing the Wealth of Our Shrinking Planet (Kindle $8.95, print $20, audiobook coming soon) Read the first section for free (PDF).

Will You Be Richer or Poorer?: Profit, Power, and AI in a Traumatized World
(Kindle $5, print $10, audiobook) Read the first section for free (PDF).

Pathfinding our Destiny: Preventing the Final Fall of Our Democratic Republic ($5 (Kindle), $10 (print), ( audiobook): Read the first section for free (PDF).

The Adventures of the Consulting Philosopher: The Disappearance of Drake $1.29 (Kindle), $8.95 (print); read the first chapters for free (PDF)

Money and Work Unchained $6.95 (Kindle), $15 (print) Read the first section for free (PDF).



If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com.




NOTE: Contributions/subscriptions are acknowledged in the order received. Your name and email remain confidential and will not be given to any other individual, company or agency.



Thank you, Sebastian S. ($35), for your splendidly generous contribution to this site -- I am greatly honored by your support and readership.
 

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Friday, September 18, 2020

"Inflation" and America's Accelerating Class War

Those who don't see the fragmentation, the scarcities and the battlelines being drawn will be surprised by the acceleration of the unraveling.

I recently came across the idea that inflation is a two-factor optimization problem: inflation is necessary for the macro-economy (or so we're told) and so the trick for policy makers (and their statisticians who measure the economy) is to maximize inflation in the economy but only to the point that it doesn't snuff out businesses and starve workers to death.

From this perspective, households have to grin and bear the negative consequences of inflation for the good of the whole economy.

This narrative, so typical of economics, ignores the core reality of "inflation" in America: it's a battleground for the class war that's accelerating. Allow me to explain.

"Inflation" affects different classes very differently. I put "inflation" in italics because it's not one phenomenon, it's numerous phenomena crammed into one deceptively simple word.

When "inflation" boosts the value of homes, stocks, bonds, diamonds, quatloos etc. to the moon, those who own these assets are cheering. When "inflation" reduces the purchasing power of wages, those whose only income is earned from their labor suffer a decline in their lifestyles as their wages buy fewer goods and services.

They are suffering while the wealthy owners of soaring assets are cheering.

The Federal Reserve and federal authorities are not neutral observers in this war. The Fed only cares about two things: enriching the banking sector and further enriching the already-rich.

The banking sector makes money by lending newly created currency to borrowers. No borrowers or new loans--banks go broke. So the Fed must generate the right kind of "inflation": it must lower the cost of borrowing money (deflating the cost of borrowing) by reducing the rate of interest borrowers pay, and it must "inflate" the market value of the collateral banks and Wall Street need to support more debt: commercial buildings, homes, stocks, bonds, etc.

This "inflation" of asset valuations makes those who already own these assets richer, while impoverishing those who must buy them with wages that are losing purchasing power. The Fed doesn't care if small businesses go broke or households slide into poverty; the Fed's only concerns are maintaining "inflation" in asset valuations and "deflation" in the cost of borrowing, so that debt-serfs, zombie corporations, local and federal government--everyone--can borrow more money, further enriching banks and Wall Street.

This is the sole goal of the Fed. Everything else is distracting PR.

There are downsides to this, of course, but they fall on "the little people" so economists, the Fed and federal officials don't bother to even track the downsides. Thus we have the nonsensical games government statisticians play to keep official measurements of "inflation" low. This serves to obscure the reality that real-world "inflation" in the cost of education, childcare, health insurance, rent, and so on--all the big-ticket household costs--is soaring, stripping away the purchasing power of wages.

Here's an example of how wages and purchasing power can be understood. Back in the day, I could rent my own studio apartment for half a week's pay. I was young and not well-paid, but I could still rent a crummy apartment for half a week's pay: 2.5 day's wages.

Try finding an apartment for half a week's pay in a major city. Young workers are paying two week's pay just to rent a room. This is a massive loss in the purchasing power of labor.

Meanwhile, those with the right kind of assets are experiencing fantasic increases in their unearned income. These increases in income (and wealth) far exceed the modest impacts of real-world inflation on these owners of the right kind of assets.

Let's start with the the wrong kind of asset: a savings account. Where savers earned 5.25% on their savings as a regulatory requirement in the 1960s, now they earn less than nothing: even the bogus "official inflation" is 2%, while savers get 0.1% or less on savings. So savers lose money every day.

Those who bought bonds and stocks and real estate--the right kind of assets--have scored enormous gains in wealth and income. There's just one little tiny problem with the right kind of assets: the vast majority are owned by the top 5% of households, with the top 1% owning 40% and the top 0.1% owning 20%--more than the bottom 80% own.

There aren't just wealth-income classes --those who own these assets and those who don't-- there are demographic and age classes, too. Young wage earners are mostly priced out of buying these assets with wages, unless they borrow staggering sums of money and devote most of their income to servicing their debts (student loans, auto loans, mortgage, etc.).

Retirees have been forced into gambling their retirement funds in the Fed-rigged casinos, which just so happen to crash every decade or so, wiping out the naive punters who believed "the Fed has our backs."

"Inflation" isn't an abstract debate --it's class war. And it's not just between two classes, those who depend on wages/earned income and those reaping the trillions in unearned income and wealth; there are warring classes fractured by age, demographics, political loyalties and issues of who's hoarding what: every one of these fractured classes is competing for scarce resources, scarce income and scarce security.

Those who don't see the fragmentation, the scarcities and the battlelines being drawn will be surprised by the acceleration of the unraveling. As noted here previously, The banquet of consequences is being laid out, and there won't be much choice in the seating.



My new book is available! A Hacker's Teleology: Sharing the Wealth of Our Shrinking Planet 20% and 15% discounts end September 30 (Kindle $7, print $17)

Read excerpts of the book for free (PDF).

The Story Behind the Book and the Introduction.



Recent Podcasts:

AxisOfEasy Salon #22: When the going gets weird, the weird turn to YouTube (1 hr)


My COVID-19 Pandemic Posts


My recent books:

A Hacker's Teleology: Sharing the Wealth of Our Shrinking Planet (Kindle $8.95, print $20, audiobook coming soon) Read the first section for free (PDF).

Will You Be Richer or Poorer?: Profit, Power, and AI in a Traumatized World
(Kindle $5, print $10, audiobook) Read the first section for free (PDF).

Pathfinding our Destiny: Preventing the Final Fall of Our Democratic Republic ($5 (Kindle), $10 (print), ( audiobook): Read the first section for free (PDF).

The Adventures of the Consulting Philosopher: The Disappearance of Drake $1.29 (Kindle), $8.95 (print); read the first chapters for free (PDF)

Money and Work Unchained $6.95 (Kindle), $15 (print) Read the first section for free (PDF).



If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com.




NOTE: Contributions/subscriptions are acknowledged in the order received. Your name and email remain confidential and will not be given to any other individual, company or agency.



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Thursday, September 17, 2020

This Is Why Inflation Will Rip Everyone's Face Off

 This is why inflation will rip everyone's faces off: production will continue to stagnate no matter how many trillions the Federal Reserve prints and throws around.


This is how market capitalism is supposed to work: consumers decide (for whatever reason) to buy more toilet paper. This increase in demand strips the shelves of TP and pushes the price up as demand exceeds supply.


In response, capital flows to enterprises that ramp up production of TP to meet this new demand / scarcity of supply. Price returns to equilibrium.


Yea for our wunnerful market capitalism ... but oops, this isn't what actually happens in our economy. What actually happens is less of a happy story. As correspondent A.P. explained in Our Wile E. Coyote Economy: Nothing But Financial Engineering (June 12, 2020), the real money in the American economy isn't made by increasing production of goods and services or making better quality products; it's made with debt that funds financial trickery like stock buy-backs.


The "business" is just the facade used to justify the corporate bonds, loans, stock buy-backs, etc. Corporate America has perfected this game, and so have Wall Street and SillyCon Valley, which produces one money-losing unicorn after another that IPOs for tens of billions of dollars, all based on the pixie dust of future profits and valuations.


Production is for losers. Financial engineering is for winners. Simply put, capital has no interest in gambling on building factories and training employees. Not only is that risky, it's a low margin endeavor, which makes it of zero interest to capital.


How many billionaires have been minted in America in the past 20 years for building anything? Billionaires become billionaires by either hijacking the human mind's receptors for attention and addiction or by selling corporate bonds and leveraging the debt to skim billions of dollars.


Not only is capital not available to boost production, neither is the expertise or labor. A great many of the people with the hands-on experience needed to build stuff and manage complex production processes have retired or will soon retire, and there isn't a second team ready to take the field.


If production is absolutely necessary, then Corporate America will have it done on the cheap overseas. Sure, the quality is terrible but the American consumer will buy without question; that's why corporations went to all the trouble of establishing a heavily moated monopoly or cartel: the consumers have either no choice or a false choice between members of a cartel offering the same lousy quality and high prices.


But Corporate America's go-to solution to everything--globalization--is running out of rope, and the cliff beckons.


Corporate America's tired trick of offering a couple bucks more per hour for the opportunity to double your workload no longer works because the issue isn't the couple bucks per hour; it's that the workforce no longer has the requisite skills because our educational system and Corporate America have failed.


The Federal Reserve can conjure up trillions of dollars out of thin air to further enrich the nation's parasitic scum, but they can't print experienced, motivated workers or people with entrepreneurial skills.


Corporate America gave up training its workforce a long time ago, and SillyCon Valley has perfected the art of poaching employees from competitors rather than invest in training.


As for the underpaid workforce who's supposed to do the real work-- as I've noted here many times, the pandemic has given many workers an opportunity to reassess their options, and some consequential percentage (including many small business owners) have concluded that the wisest course of action is to follow Johnny Paycheck's suggestion to Take This Job and Shove It.


The top 5%--speculators, technocrats, managers and the chattering classes-- haven't grasped that America is now a variation on the old Soviet joke: The Soviet joke was we pretend to work and you pretend to pay us. In America, the joke is: we work like crazy to make you rich and you pretend to pay us.


This is why inflation will rip everyone's faces off: production will continue to stagnate no matter how many trillions the Federal Reserve prints and throws around. With capital addicted to financial engineering and the purchasing power of labor's wages in permanent decline, we're about to reap the consequences of hollowing out our real economy to benefit the most parasitic and socially useless sociopaths at the top.



My new book is available! A Hacker's Teleology: Sharing the Wealth of Our Shrinking Planet 20% and 15% discounts end September 30 (Kindle $7, print $17)

Read excerpts of the book for free (PDF).

The Story Behind the Book and the Introduction.


Will You Be Richer or Poorer?: Profit, Power, and AI in a Traumatized World


Pathfinding our Destiny: Preventing the Final Fall of Our Democratic Republic ($5 (Kindle), $10 (print), ( audiobook): Read the first section for free (PDF).


The Adventures of the Consulting Philosopher: The Disappearance of Drake $1.29 (Kindle), $8.95 (print); read the first chapters for free (PDF)


Money and Work Unchained $6.95 (Kindle), $15 (print) Read the first section for free (PDF).


NOTE: Contributions/subscriptions are acknowledged in the order received. Your name and email remain confidential and will not be given to any other individual, company or agency.

Thank you, George G. ($10/month), for your outrageously generous pledge to this site -- I am greatly honored by your support and readership.

 

Thank you, Michael H. ($10/month), for your outrageously generous pledge to this site -- I am greatly honored by your support and readership.


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Tuesday, September 15, 2020

Sacrifice for Thee But None For Me

The banquet of consequences for the Fed, the elites and their armies of parasitic flunkies and factotums is being laid out, and there won't be much choice in the seating.
Words can be debased just like currencies. Take the word sacrifice. The value of the original has been debased by trite, weepy overuse to the point of cliche. Like other manifestations of derealization and denormalization, this debasement is invisible, profound and ultimately devastating.
Consider the overworked slogan of implied shared sacrifice: we're all in this together. Pardon my cynicism, but doesn't this sound like what the first class passengers in the lifeboats shouted to the doomed steerage passengers on the sinking Titanic?
Here is the ice-cold reality of America in 2020: Sacrifice for Thee But None For Me. This isn't a new trend, of course. Any measurable sacrifices shared by all the socio-economic classes ended with World War II in 1945, and since then it's been one long slide to Sacrifice for Thee But None For Me.
We've seen this slide to decay and collapse many times in history. The elites who once gained social status and political power by making real sacrifices on behalf of the nation / empire become entirely self-serving, accumulating ever greater wealth and power by transferring all the sacrifices and risks onto the lower classes.
Peter Turchin, author of War and Peace and War: The Rise and Fall of Empires, describes how civic virtue is gradually replaced by personal greed and self-interest.
This excerpt perfectly captures the current zeitgeist:
"Virtus included the ability to distinguish between good and evil and to act in ways that promoted good, and especially the common good. Unlike Greeks, Romans did not stress individual prowess, as exhibited by Homeric heroes or Olympic champions. The ideal of hero was one whose courage, wisdom, and self-sacrifice saved his country in time of peril.
Unlike the selfish elites of the later periods, the aristocracy of the early Republic did not spare its blood or treasure in the service of the common interest. When 50,000 Romans, a staggering one fifth of Rome's total manpower, perished in the battle of Cannae, as mentioned previously, the senate lost almost one third of its membership. This suggests that the senatorial aristocracy was more likely to be killed in wars than the average citizen....
The wealthy classes were also the first to volunteer extra taxes when they were needed... A graduated scale was used in which the senators paid the most, followed by the knights, and then other citizens. In addition, officers and centurions (but not common soldiers!) served without pay, saving the state 20 percent of the legion's payroll....
The richest 1 percent of the Romans during the early Republic was only 10 to 20 times as wealthy as an average Roman citizen."
Now compare that to the situation in Late Antiquity when
"An average Roman noble of senatorial class had property valued in the neighborhood of 20,000 Roman pounds of gold. There was no 'middle class' comparable to the small landholders of the third century B.C.; the huge majority of the population was made up of landless peasants working land that belonged to nobles. These peasants had hardly any property at all, but if we estimate it (very generously) at one tenth of a pound of gold, the wealth differential would be 200,000! Inequality grew both as a result of the rich getting richer (late imperial senators were 100 times wealthier than their Republican predecessors) and those of the middling wealth becoming poor."
Compare this to the America of World War II and the America of today. Wealthy, politically influential families such as the Kennedys could only retain their influence if their sons served in positions of combat leadership, and Joe Kennedy was killed in the European theater after volunteering for a highly risky air mission. John F. Kennedy very nearly lost his life in the South Pacific.
And how do our era's crop of presidents and presidential contenders fare by comparison? The idea that flesh and blood should ever be at risk in defense of the nation /empire--perish the thought.
As Turchin sagely observed, it's not just the limitless greed and avoidance of sacrifice of the elite that generates destabilizing inequality--it's the eradication of the middle class as all the risks and sacrifices were shifted from the self-serving top to the middle and lower classes.
As I've often noted, risk cannot be made to disappear, it can only be transferred to others. In the grand scheme of things, the inherent risks of globalization and financialization have all been transferred to the middle and working classes (however you define them). The elite class enjoys the near-infinite support of the Federal Reserve and it's ability to print near-infinite sums of currency to bail out the greediest, most self-serving scum of parasites and speculators.
Meanwhile, all the sacrifices required to support this unfair, corrupt, predatory system have been transferred to the middle and working classes via sleight of hand. The sacrifices weren't transparent and up front; they were cloaked in the decline of job security, in ever-higher costs, in the decline of social mobility and the erosion of the purchasing power of wages.
The elites' economist flunkies and factotums claimed that bailing out the freeloaders, parasites and speculators would benefit "the little people" because the grand trade-off delivered by the Federal Reserve (as correspondent R.J. pointed out to me) was: no more financial panics, which caused much misery in the working class due to business failures causing layoffs and unemployment.
But globalization, financialization and the rise of cartel-state monopolies have eviscerated the middle and working classes far more effectively and permanently than any brief financial panic, while greatly enriching the elite class--a rise in wealth that is backstopped by the Federal Reserve: profits are the elites to keep while their losses are socialized, i.e. transferred to the lower classes.
Job security, the purchasing power of wages and social mobility--nothing vital to the middle or working classes is backstopped by the Fed; the Fed's one and only job is backstopping the wealth of our parasitic, predatory elite.
Sacrifice for Thee But None For Me. The banquet of consequences for the Fed, the elites and their armies of parasitic flunkies and factotums is being laid out, and there won't be much choice in the seating.
My new book is available! A Hacker's Teleology: Sharing the Wealth of Our Shrinking Planet 20% and 15% discounts end September 30 (Kindle $7, print $17)
Money and Work Unchained $6.95 (Kindle), $15 (print) Read the first section for free (PDF).


If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com.

NOTE: Contributions/subscriptions are acknowledged in the order received. Your name and email remain confidential and will not be given to any other individual, company or agency.
Thank you, Paul G. ($5/month), for your monumentally generous contribution to this site -- I am greatly honored by your support and readership.
 
Thank you, J.D. ($5/month), for your superbly generous pledge to this site -- I am greatly honored by your support and readership.

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All content on this blog is provided by Trewe LLC for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information. These terms and conditions of use are subject to change at anytime and without notice.


Our Privacy Policy:


Correspondents' email is strictly confidential. This site does not collect digital data from visitors or distribute cookies. Advertisements served by a third-party advertising network (Investing Channel) may use cookies or collect information from visitors for the purpose of Interest-Based Advertising; if you wish to opt out of Interest-Based Advertising, please go to Opt out of interest-based advertising (The Network Advertising Initiative). If you have other privacy concerns relating to advertisements, please contact advertisers directly. Websites and blog links on the site's blog roll are posted at my discretion.


PRIVACY NOTICE FOR EEA INDIVIDUALS


This section covers disclosures on the General Data Protection Regulation (GDPR) for users residing within EEA only. GDPR replaces the existing Directive 95/46/ec, and aims at harmonizing data protection laws in the EU that are fit for purpose in the digital age. The primary objective of the GDPR is to give citizens back control of their personal data. Please follow the link below to access InvestingChannel’s General Data Protection Notice. https://stg.media.investingchannel.com/gdpr-notice/


Notice of Compliance with The California Consumer Protection Act


This site does not collect digital data from visitors or distribute cookies. Advertisements served by a third-party advertising network (Investing Channel) may use cookies or collect information from visitors for the purpose of Interest-Based Advertising. If you do not want any personal information that may be collected by third-party advertising to be sold, please follow the instructions on this page: Do Not Sell My Personal Information


Regarding Cookies:


This site does not collect digital data from visitors or distribute cookies. Advertisements served by third-party advertising networks such as Investing Channel may use cookies or collect information from visitors for the purpose of Interest-Based Advertising; if you wish to opt out of Interest-Based Advertising, please go to Opt out of interest-based advertising (The Network Advertising Initiative) If you have other privacy concerns relating to advertisements, please contact advertisers directly.


Our Commission Policy:

As an Amazon Associate I earn from qualifying purchases. I also earn a commission on purchases of precious metals via BullionVault. I receive no fees or compensation for any other non-advertising links or content posted on my site.

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