Friday, February 18, 2022

The Winter of Our Discontent: Hubris Is Ascendent

Meanwhile, back in the wintry real world, everyone facing a dime in higher costs is jacking up their price by a dollar.

We're constantly assured everything's on the mend but this trying-too-hard marketing has the opposite effect: it confirms everything's unraveling. We're told inflation is transitory (you mean like terminal cancer is "transitory"?), the economy is opening up and growing smartly.

None of this is remotely persuasive. OK, we get it: the pandemic shutdown crushed supply chains and demand, and then trillions of dollars, yen, yuan and euros of monetary and fiscal stimulus boosted pent-up demand which then snarled creaky supply chains. Inflation is transitory because the effects of this massive stimulus is temporary and the global supply snarls will all be unkinked shortly.

But this happy story only accounts for a thin wafer of global supply issues. Yes, a few items may be restored to low-cost production and shipping, but all this rah-rah ignores the primary dynamics: all the cheap, easy-to-get resources have been extracted and consumed, and labor costs, crushed for the past 45 years, have reversed: after being stripmined by capital for the past 45 years, labor is now demanding some modest restoration of decades of diminished purchasing power, not just in the U.S. but in China and other production nodes in global supply chains.

Capital's screams of agony are laughable, as the top tier of capital has added trillions in wealth at the expense of the bottom 99.5%. The wealth of the few has metastasized into hyper-wealth--$100 million yachts and villas barely scratch the surface of the billions gained by gaming financialization and the Federal Reserve's financial fentanyl.

Although nobody benefiting from the Fed's financial fentanyl seems to have noticed, hyper-wealth has extinguished democracy and destabilized the economy and society. With trillions gushing into the wealthiest families and corporate insiders, "democracy" has been reduced to an invitation-only auction of political favors.

If you didn't get your desired favors, then increase your bid. Big Pharma, the "defense" (heh) industry, Higher Education, Big Ag, Big Tech, et al. are all willing to pony up millions in bribes--oops, I mean "donations"-- to multi-millionaire politicos profiting from insider trading (cough, Pelosi, cough). Revolving doors ensure the right people get fat speaking fees, cushy do-nothing slots in philanthro-capitalist foundations, etc.

The decay caused by hyper-wealth is systemic: the moral decay of a thoroughly corrupted "leadership," a sham facade of "democracy" (vote for whomever you want, the ownership of power doesn't change), an economy dominated by profiteering cartels and quasi-monopolies, a class system in which privilege is hidden in plain sight, a society of haves who have broken the rungs of the social-mobility ladder, leaving the have-nots unaffordable housing, unaffordable higher education, unaffordable healthcare, unaffordable childcare, etc., all to be paid out of wages that have lost purchasing power for decades and continue to lose ground as "transitory" inflation is embedded in essentials and fripperies alike.

Meanwhile, back in the wintry real world, everyone facing a dime in higher costs is jacking up their price by a dollar. "Inflation" is a handy cover for jacking up prices just to see how much the panic-hoarding, desperate consumer will pay: hmm, a used truck costs more than a new truck cost two years ago? I'll take it! A mattress-in-a-box has doubled in price? I'll take it! A fast-food burger is now 50% more? Give me four, and charge it to my credit card.

Oh, but wait--everything is being fixed by speculative bubbles that enrich everyone who bought assets long ago. That's obviously a solution that benefits everyone, right? So the newly enriched can buy overvalued assets from other newly enriched, all funded by the Fed's financial fentanyl.

Yes, it's time to distribute victorious wreaths to the purveyors and profiteers of financial fentanyl. Hubris is ascendent just before the fall.

Now are our brows bound with victorious wreaths;
Our bruised arms hung up for monuments;
Our stern alarums changed to merry meetings,
Our dreadful marches to delightful measures.





My new book is now available at a 20% discount this month: Global Crisis, National Renewal: A (Revolutionary) Grand Strategy for the United States (Kindle $8.95, print $20)

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.



Recent Videos/Podcasts:

Charles Hugh Smith on Why Many are Resigning From Their Jobs (35 minutes, with Richard Bonugli)


My recent books:

Global Crisis, National Renewal: A (Revolutionary) Grand Strategy for the United States (Kindle $9.95, print $25) Read Chapter One for free (PDF).

A Hacker's Teleology: Sharing the Wealth of Our Shrinking Planet (Kindle $8.95, print $20, audiobook $17.46) 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



Become 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, Jeff G. ($120), for your beyond-outrageously generous contribution to this site -- I am greatly honored by your steadfast support and readership.

 

Thank you, Kevin K. ($75), for your marvelously generous contribution to this site -- I am greatly honored by your steadfast support and readership.


Thank you, Carol V.B. ($50), for your magnificently generous contribution to this site -- I am greatly honored by your steadfast support and readership.

 

Thank you, Michael M. ($50), for your monumentally generous contribution to this site -- I am greatly honored by your support and readership.

Terms of Service

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: Limit the Use of My Sensitive 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.

  © Blogger templates Newspaper III by Ourblogtemplates.com 2008

Back to TOP