Tag Archives: Civil Strife

Why We’re Doomed: Our Economy’s Toxic Inequality

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By Charles Hugh Smith

Source: Of Two Minds

Anyone who thinks our toxic financial system is stable is delusional.

Why are we doomed? Those consuming over-amped “news” feeds may be tempted to answer the culture wars, nuclear war with North Korea or the Trump Presidency.

The one guaranteed source of doom is our broken financial system, which is visible in this chart of income inequality from the New York Times: Our Broken Economy, in One Simple Chart.

While the essay’s title is our broken economy, the source of this toxic concentration of income, wealth and power in the top 1/10th of 1% is more specifically our broken financial system.

What few observers understand is rapidly accelerating inequality is the only possible output of a fully financialized economy. Various do-gooders on the left and right propose schemes to cap this extraordinary rise in the concentration of income, wealth and power, for example, increasing taxes on the super-rich and lowering taxes on the working poor and middle class, but these are band-aids applied to a metastasizing tumor: financialization, which commoditizes labor, goods, services and financial instruments and funnels the income and wealth to the very apex of the wealth-power pyramid.

Take a moment to ponder what this chart is telling us about our financial system and economy. 35+ years ago, lower income households enjoyed the highest rates of income growth; the higher the income, the lower the rate of income growth.

This trend hasn’t just reversed; virtually all the income gains are now concentrated in the top 1/100th of 1%, which has pulled away from the top 1%, the top 5% and the top 10%, as well as from the bottom 90%.

The fundamental driver of this profoundly destabilizing dynamic is the disconnect of finance from the real-world economy.

The roots of this disconnect are debt: when we borrow from future earnings and energy production to fund consumption today, we are using finance to ramp up our consumption of real-world goods and services.

In small doses, this use of finance to increase consumption of real-world goods and services is beneficial: economies with access to credit can rapidly boost expansion in ways that economies with little credit cannot.

But the process of financialization is not benign. Financialization turns everything into a commodity that can be traded and leveraged as a financial entity that is no longer firmly connected to the real world.

The process of financialization requires expertise in the financial game, and it places a premium on immense flows of capital and opaque processes: for example, the bundling of debt such as mortgages or student loans into instruments that can be sold and traded.

These instruments can then become the foundation of an entirely new layer of instruments that can be sold and traded. This pyramiding of debt-based “assets” spreads risk throughout the economy while aggregating the gains into the hands of the very few with access to the capital and expertise needed to pass the risk and assets off onto others while keeping the gains.

Profit flows to what’s scarce, and in a financialized economy, goods and services have become commodities, i.e. they are rarely scarce, because somewhere in the global economy new supplies can be brought online.

What’s scarce in a financialized economy is specialized knowledge of financial games such as tax avoidance, arbitrage, packaging collateralized debt obligations and so on.

Though the billionaires who have actually launched real-world businesses get the media attention–Bill Gates, Jeff Bezos, Steve Jobs, et al.–relatively few of the top 1/10th of 1% actually created a real-world business; most are owners of capital with annual incomes of $10 million to $100 million that are finance-generated.

This is only possible in a financialized economy in which finance has become increasingly detached from the real-world economy.

Those with the capital and skills to reap billions in profits from servicing and packaging student loan debt have no interest in whether the education being purchased with the loans has any utility to the indebted students, as their profits flow not from the real world but from the debt itself.

This is how we’ve ended up with an economy characterized by profound dysfunction in the real world of higher education, healthcare, etc., and immense fortunes being earned by a few at the top of the pyramid from the financialized games that have little to no connection to the real-world economy.

Anyone who thinks our toxic financial system is stable is delusional. If history is any guide (and recall that Human Nature hasn’t changed in the 5,000 uears of recorded history), this sort of accelerating income/wealth/ power inequality is profoundly destabilizing–economically, politically and socially.

All the domestic headline crises–culture wars, opioid epidemic, etc.–are not causes of discord: they are symptoms of the inevitable consequences of a toxic financial system that has broken our economy, our system of governance and our society.

3 Signs You Might Be a Pawn of the New World Order

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By Sigmund Fraud

Source: Activist Post

The mother lode of all conspiracies is the New World Order. In essence, it is a high-level, multi-generational plan to render all sovereign national governments subservient to an unelected, supranational, authoritarian world government. In this scheme, the people of planet earth will be micromanaged with strict social, technological and financial controls. It is the total consolidation of global power into the hands of a ruthless, minority elite who aim to rape the planet and enslave the human race.

They can’t do it alone, though, they need your help. They need witting and unwitting minions to set the brush fires of revolutionary change in our towns and cities. They need pawns to agitate and disrupt the relative peace, and to upend the status quo with turmoil. They need senseless, animal-like violence, caught on camera and replayed ad infinitum on cable news and social media. They need terror, of both the foreign and domestic variety. They need fear in the streets, and fear in the minds of the proles.

Most of all, though, they need you to create chaos, so that they can bring order.

The powers that be, those demons of the deep state, those orchestrators of fear, famine, debt and war, cannot achieve their plan without leading the masses into confusion and disarray, for only then will the masses demand an end to their own freedoms and privacy. And sadly, it appears their army of minions is growing in strength and audacity.

In the aftermath of Charlottesville it is more clear than ever that there is no shortage of pawns for the New World Order. The armies of ignorance are gathering, and here are three signs you might be among them.

1. You’re Playing the Divide and Conquer Game

Left vs. Right. Black vs. White. Republican vs. Democrat. Citizen vs. Immigrant. Communist vs. Fascist. Have vs. Have Not. My Team vs. Your Team. Me vs. You.

There a thousand and one ways for a society to faction and split apart, but without community and unity we are lost, doomed and done. If you’re entrenched in one side of any dualistic paradigm, seeking to convert or to crush the other side, then you’re playing right into the hands of the NWO.

The tactic of top-down divide and conquer is the oldest play in the book of how to overthrow sovereign people. The rulers foment conflict amongst the people, then step out of the way and let them fight it out, so that they can step in later as the benevolent savior… big brother.

If you’re playing this game, then you’re doing their work for them.

2.) You’re a Vocal Supporter of the War Du Jour

Today the drums are beating for a nuclear assault against North Korea… and military intervention in Venezuela. Just recently we’ve been told we need to prepare for conflict with Russia, and that an invasion of Syria is in our best interests. Prior to that we destroyed Libya and Iraq, we occupied Afghanistan, and we’ve been using the war on drugs and the war on terror as casus belli for interference in dozens of countries around the world.

The imperial mindset is several generations deep in America, and the citizenry has all but fully abandoned the anti-war stance in favor of gung-ho, jingoistic cheerleading of any and all military escapades.

The New World Order is brute force, but in our hyper-connected world they need to create the appearance of public support in order to advance the military industrial colonization of the world. It cannot do this without the public support and advocacy of at least some segment of the proletariat.

If you’re always on board for the expansion of international conflict, taking cues from mainstream media in this regard, and demanding action against all of our perceived enemies, you are aiding and abetting the New World Order.

3.) You Direct Your Anger and Frustration Towards Anyone but Those at the Very Top of the Pyramid

Zero doubt there are a million problems plaguing our complex world today, and it can be comforting to blame someone whom you can look in the eye, someone who is unprotected by the wealth and security afforded by the oligarchy. Emotional reactions to the stresses in our modern world are to be expected, but without knowledge of the contemporary power structures pulling the big strings, those reactions can be sorely misdirected onto lesser players and other pawns.

The truth is out there. At the root, a geo-political financial elite is conquering the world through manipulation of currencies, the imposition of astronomically insurmountable levels of public and private debt, and full-spectrum military dominance of uncooperative nations. This program is far above and beyond the capacity of your fellow citizen.

If you’re convinced that taking your outrage to the streets in war against your fellow countrymen is going to solve the problems of the world, you’re helping to fulfill the goals of the New World Order.

Final Thoughts

Social unrest and civil war are the final stepping-stones to a brave new authoritarian future. In order to get there, the American people must exhibit a self-motivated and determined resolve for violence against each other.

The New World Order needs blue pill takers, those people who deliberately choose ignorance in exchange for spurious peace of mind. They need useful idiots to help distract the rest of the population from the crimes of the oligarchy. They need armies of volunteer foot soldiers and pawns who will create the conditions necessary for martial law and even broader restrictions of rights and freedoms.

For the New World Order to succeed, we must ultimately demand our own slavery.