Tag Archives: Economics

What’s Changed and What Hasn’t in a Tumultuous Year

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By Charles Hugh Smith

Source: Of Two Minds

Inequality is America’s Monster Id, and we’re continuing to fuel its future rampage daily.

What’s changed and what hasn’t in the past year? What hasn’t changed is easy:

1. Wealth / income inequality is still increasing. (see chart #1 below)

2. Wages / labor’s share of the economy is still plummeting as financial speculation’s share has soared. (see chart #2 below)

What’s changed is also obvious:

1. Money velocity has cratered. (see chart #3 below)

2. Federal borrowing / spending has skyrocketed, pushing federal debt to unprecedented levels. (see chart #4 below)

3. Speculation has reached the society-wide mania level. This is evidenced by record margin debt levels, record levels of financial assets compared to GDP and many other indicators. (see chart #5 below)

Interestingly, every one of historian Peter Turchin’s 3-point Political Stress Index is now checked. Recall that these are core drivers of consequential social disorder, the kind that leads to empires collapsing, the overthrow of ruling elites, social revolutions, etc.

1. Stagnating real wages (i.e. adjusted for real-world inflation): check

2. Overproduction of parasitic elites: double-triple check

3. Deterioration of central state finances: check

But what about social changes? This is an interesting topic because social changes are less easily tracked (few even ask relevant questions and compile the data). Social trends are often more difficult to discern, as surveys may not track actual changes in behavior: people may give answers they reckon are expected or acceptable.

Here are four long-term trends that may have been accelerated by the pandemic:

1. The residents of overcrowded tourist destinations are sick of tourists and are demanding limits that protect increasingly fragile environments and resident quality of life.

Here’s a typical observation of a resident in Hawaii now that tourists are coming back:

Sunday I saw a group of 30 spring break tourists littering the beach with red cups and bottles of alcohol and trash. They had a table full of booze on the beach and were happily leaving their trash everywhere. No masks and no cares for Hawaii. When they left, instead of using the beach access they all climbed over the fence into someone’s yard because it saved them a minute of walking.

No I don’t miss tourists.

This is a global phenomenon. The absence of tourists has awakened a powerful sense that the profits (which flow into elite hands, not local economies) have taken precedence over the protection of what makes the destination worth visiting.

2. Work from home is here to stay. The benefits are too personal and powerful. Corporations demanding a return to long commutes and central offices will find their most productive employees are giving them “take this job and shove it” notices as they find positions with companies that understand that you can’t turn back the clock or ignore the benefits of flexible schedules.

3. Consumer behaviors have changed and are continuing to change. This is not just an expansion of home delivery; it’s a re-appraisal of big-ticket spending on concerts, entertainment, sports events and many other sectors that depend solely on free-spending consumers who ignore the recent doubling or tripling of prices.

4. Perceptions of the wealthy are changing. I touched on this topic in The Coming War on Wealth and the Wealthy (1/5/21) and The Coming Revolt of the Middle Class (1/27/21). Inequality is America’s Monster Id, and we’re continuing to fuel its future rampage daily.

Where’s Dirk Gently When You Need Him?

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By Erik Assadourian

Source: Resilience

Did you hear? A supersized cargo ship got wedged in the Suez Canal on March 23rd? If you didn’t, you must do pretty well at avoiding the news, social media, and late night TV. But the short of it is: the Ever Given somehow lost control (sandstorm strength winds have been blamed, as have human errors) and crashed into the bank of the canal and lodged itself in.

So what? Is this really news? Or just a sensational story to distract us from the pandemic, which, one might argue, is itself a distraction from the rapid unraveling of Earth’s systems and thus human civilization? Perhaps. But then again perhaps not. Here’s why this incident is worth understanding.

First, a ship single-bowedly disrupted global trade for six days. It was finally freed on March 29th. However, there is now a backlog of over 300 ships while many ships rerouted around the Cape of Good Hope. The Suez Canal is part of a trade route that carries more than 10 percent of global trade, including 7 percent of the world’s oil. Each day 30 percent of the world’s shipping container freight moves through the canal. Thus it created backlogs in shipping (including some 200,000 live animals who could have overheated or run out of food). It raised the price of oil briefly. It created shortages in factories—not just of parts but of shipping containers. And of course, it felt like a freak occurrence. Last year, of the 18,840 ships that moved through the canal, there were no incidents.

But the main reason is because this is an excellent metaphor on how fragile our entire globalized system has become.

It makes you wonder where Dirk Gently is to help straighten all this out. If you haven’t heard of Gently, he is a holistic detective, who uses “the fundamental interconnectedness of all things” to find missing persons (and cats) and solve mysteries. In fact, the novel Dirk Gently’s Holistic Detective Agency includes him trying to figure out how a sofa got “irrevocably stuck” halfway up a staircase.

Similar story here: the Ever Given was jammed in tight—though fortunately with the help of the full moon and tides, unstuck without resorting to time travel (which was needed to free the errant sofa). And while the supernatural wasn’t at the root cause of this mishap as with the couch, instead of focusing just on the bad luck of a sandstorm (which are not uncommon in Egypt) combined with bad piloting, we should still investigate the root causes at play. So let’s peel back the layers one at a time.

Bigger is better!

At the surface, we might simply say the problem stems from the fact that we keep making bigger container ships. The Ever Given is a quarter mile long (one lap around a track or the height of the Empire State Building). And it weighs 220,000 tons and holds 20,000 containers (each 20-40 feet long). High oil prices (especially 2005-8), combined with cheap debt after the 2008 crash led shipping companies to invest in bigger and bigger ships. The Ever Given holds four times the cargo a ship carried in 2000. In fact, these containers were stacked so high that they acted like a giant sail and caught the intense winds that drove the Ever Given into the banks. So, yes, there’s more risk involved, but it’s cheaper to add more containers. To get as much on there as possible. Sometimes that means losing a load of containers to a storm or other incident (about 1600 containers are lost on average each year). Not to mention the fluke canal accident—not that this was a widely recognized risk. (However, this OECD report from 2015 did raise the challenges of burgeoning cargo ship sizes). But now this threat will need to be considered, including terrorists doing this intentionally to disrupt trade.

Now more concentrated!

But of course, looking holistically, let’s ask why do we even need these big ships? So, peeling another layer, we see that we have concentrated our manufacturing to a few major locations and promoted the consumer culture worldwide so we need to get goods of all types to rich Europeans, we need to get oil to run cars and planes in every country, we need to get livestock to the Middle East to feed this affluent desert population. Our globalized system depends on big old cargo ships. Even this incident is a reflection of our extreme globalization: the ship is owned by a Japanese company; run by a Taiwanese company (Evergreen); piloted by Indians; operating under a Panamanian flag; navigating through an Egyptian waterway, shipping brand name goods from all over the globe, and rescued by a Dutch salvage company. That’s kind of neat—a global Kumbaya moment—or a revelation of just how deeply aligned nations are in converting Earth’s forests, lands, water, and life into the latest in consumer products.

But wait, there’s more!

Peeling another layer, we find that the movement of all these consumer goods is driven by a culture fixated on growth, profit, and consumerism. We move factories to exploit cheaper labor, lax environmental rules; we spend $763 billion a year on advertising to convince people they need a new iPhone or a new car or a trip to wherever; we convert landscapes wholesale into resources; and we panic if our economies don’t grow. We’re trapped in a pursuit of material happiness, manipulated by the admen and politicians, driven now by our addictions to sweets, tobacco, alcohol, drugs, social media, and entertainment, to the point we’re “amusing ourselves to death.” But worse, we’re so amused we hardly even notice the death part any longer.

Free disconnect with every purchase!

And arriving at the inner layers of the onion, we find this: that our disconnection from the Earth is so deep, so profound, so complete, that we no longer even consider the planet in our decisions to manufacture items or ship them or buy them. We think instead about expanding our economies, upsizing our homes, upgrading our cars and phones, even stockpiling toilet paper (which again became a thing in the Suez Canal story as wood pulp supplies were potentially delayed). Even as scientists warn of ecological collapse, of cities lost to flooding seas, of regions abandoned due to perpetual drought, to the inevitable violence that all this will cause, to the countless species lost—many of whom we depend on directly for our survival—we focus on making memes, writing essays (guilty), and trying to live slightly-greener-around-the-edges-consumer-lifestyles.

Dealing with this metaphorical couch

Perhaps that’s why the struggling bulldozer became the source of so many memes. Except the most important one: The bulldozer as the environmental movement and the ship as Consumer Capitalism. Ultimately, trying to free the ship, or even convert it to run on green fuels or the latest in sail technology is treating the superficial layers. Instead, we need to dig deeper (yuk yuk). We need to re-regionalize production; reduce production; degrow our economies, find ways to disincentivize and discourage a consumer lifestyle; or better yet, make it clear that this whole culture of consumerism is suicidal and worse, anti-life, and must go in order to prevent future ship jams or far worse global disruptions. And even deeper, we need to reconnect people to the living Earth to make them understand that every sin against the planet, against other creatures, and against other humans who we exploit, we do to ourselves. That if we fail to change paths, we will run head first into the proverbial canal wall. And there will be no one to dig us out.

IN ORDER TO UNDERSTAND THE WORLD TODAY YOU MUST UNLEARN THIS ONE THING

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By Sigmund Fraud

Source: Waking Times

At present, we are dangerously trending toward chaos, total world war, civil war, incivility, and a complete breakdown of civil society, and to the indoctrinated, it’s difficult to understand why exactly this is happening. As the stress of this mounts, the misinformed lash out at friends, family members and strangers who do not fully subscribe to their worldview. The battle really is one of understanding how the world works, and with such epidemic false perceptions, people choose the wrong targets for their ire.

If one were to unlearn, however, many of the things we’ve been taught about how our world works, re-educate the self, and re-orient to a more complete and truthful assessment of the world today, the picture becomes more clear, things make more sense, and a pathway to unity opens up. One thing we can all agree on, though, is that we’ve all been duped in big ways, most notably in the one arena which affects everyone, everyday, at every time. Money.

False = Money is Real and the Economy is Capitalist

Trained to worship money and the idea of infinite growth, it’s tough to understand just how much unnatural stress is being introduced in our world by a financial system and world economy which is operates explicitly for the profit a few key players. The money is fiat, and its value is controlled by privately run organizations who have the power to enslave the entire world with debt.

Furthermore, the system is not capitalism, but rather something beyond capitalism. Post capitalism, perhaps, as it more closely resembles the zombie ghost of capitalism, soullessly eating everything in its path with no interest at all in sustainability.

Recently speaking on this matter, financial analyst Max Keiser explained the result of having central bank managed interest rates kept artificially low in order to enrich those at the top of the pyramid. This is one major piece of very large and hidden puzzle.

“There’s no incentive to save money, there’s only an incentive to commit fraud. So if there’s no incentive to save money, then there’s no capital, and without capital there’s no capitalism. So you have, unfortunately, now a situation where it’s the survival of the most fraudulently inclined. It’s a kakistocracy, which is rule by the least capable of a society.” ~Max Keiser

This short interview with Max Kaiser by Luke Rudkowski sheds more insight on this issue:

The system we have today is really more akin to an elaborate slave plantation. All money that we use today in public is borrowed from private banks, and we pay dearly for the privilege of using it.

This is because money is created out of debt in a one-to-one increase in public debt. The national debt is $20 Trillion. That means the (roughly) 234 million US Americans would have to pay approximately $62,000 each to pay it off. This includes babies, children, poor people, and homeless people. There are even those who claim that it’s mathematically impossible to pay off the debt. And almost every country is in debt to every other country. It’s the height of insanity.

As former Governor of the Federal Reserve Marriner Eccles said, “If there were no debts in our money system, there wouldn’t be any money.” ~Gary ‘Z’ McGee

The stress in our world stemming from a global banking system designed to enslave is felt everywhere, from endless wars to unaffordable healthcare and evermore expensive food. Yet while few people really understand how this works, we are battling a war of propaganda and mind control.

Making sense of the world today is no easy task for those who’ve yet to abandon the standard American diet of propaganda and mental programming. Indoctrination works in a couple of key ways. Firstly, beliefs are instilled and reinforced by repetition, and secondly, undesirable beliefs are ignored and cast aside as fringe. What’s left is a mind which focuses on what it’s supposed to focus on, constructing a reality around a false and incomplete picture of the world.

This is food for thought for free thinkers, with the aim overcoming petty division in order to create a more prosperous and unified future.

Stagflation Subterfuge: The Real Disaster Hidden By The Pandemic

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By Brandon Smith

Source: Alt-Market.us

In recent economic news, headlines are being dominated by concerns over rising bond yields. Increased bond yields are a sign of a possible spike in inflation and, logically, they call for the Federal Reserve to raise interest rates in order to prevent that inflation.

Higher bond yields also mean there is a competitive alternative to stocks for investors – both factors that could trigger a plunge in the stock market.

If one studies the real history behind the stock market crash during the Great Depression, they will find that it was the Federal Reserve’s interest rate hikes that caused and prolonged the disaster after they had created an environment of cheap and easy money throughout the 1920s. Former Chairman Ben Bernanke openly admitted the Fed was responsible back in 2002 in a speech honoring Milton Friedman. He stated:

“In short, according to Friedman and Schwartz, because of institutional changes and misguided doctrines, the banking panics of the Great Contraction were much more severe and widespread than would have normally occurred during a downturn. Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again.”

This then raises the question – inflation or deflation? Will the Fed “do it again?”

Probably not in exactly the same way, but we will see elements of both inflation and deflation soon in the form of stagflation.

It’s a Catch-22 that the central bank has created, and many (including myself) believe that the Fed has created the conundrum deliberately. All central banks are tied together by the Bank for International Settlements (BIS) and the BIS is a globalist institution through and through. The globalist agenda seeks to trigger what they call the “Great Reset,” a complete reformation of the global economy and capitalism into a single one world socialist system… managed by the globalists themselves, of course.

In my view the Fed has always been a kind of institutional suicide bomber; its job is to self-destruct at the right moment and take the U.S. economy down with it, all in the name of spreading its cult-like globalist ideology.

The only unknown at this point is how they will go about their sabotage. Will the central bank continue to allow inflation to explode the cost of living in the U.S., or will they intervene with higher interest rates and allow stock markets to crash?

Either way, we face a serious economic crisis in the near future.

 

Increasing Inflation Means Economic Recovery?

Mainstream economists will often argue that rising yields and inflation are a “good thing.” They claim this is a sign of rapid economic recovery. I disagree.

If “inflation” was the same as “recovery,” then there would not have been total economic collapses in Argentina in 2002, in Yugoslavia in 1994, or in Weimar Germany in the early 1920s.

I do not see recovery. What I see is the rapid devaluation of the dollar’s buying power due to massive fiat printing through stimulus measures. The Fed and the U.S. government are buying a short-term surge in economic activity, but at a hidden cost. This is a condition that the Dollar Index does not even begin to address, but obvious in prices of necessary goods and commodities.

Keep in mind that all of this is being done in the name of responding to the pandemic. The pandemic is the ultimate excuse for the active destruction of the U.S. economy. Stimulus measures have devolved into helicopter money being thrown about haphazardly as billions are siphoned primarily by major corporations and through fraud. People who are clamoring for a $2,000 relief check from the government have no idea that corporate welfare has been ongoing for the past year along with billions in retroactive tax refunds. All of that money printing is going to cause damage somewhere. It cannot be avoided.

 

It’s Not About The Pandemic

Let’s make something clear first: The pandemic is NOT the reason for the stimulus flood. The pandemic did very little to hurt actual business in the U.S. Rather, it was the lockdowns that did most of the damage.

Think about that for a moment – federal and state governments crushed the economy through lockdowns, then offered the solution of vast stimulus measures. This in turn is destroying financial stability and generating rapid price inflation.

Conservative states and counties that refused to shut down are recovering at a much faster pace than leftist states which imposed draconian restrictions on citizens. Yet, the lockdowns did nothing to stop the spread of COVID-19 in blue states. So, the lockdowns accomplished no discernible advantage for the public, but they did give the central bank a perfect rationale to further erode the dollar.

This resulting price inflation is something that not even the red states can escape.

For example, home prices are rapidly expanding beyond the market bubble of 2006. This is partially due to millions of people participating in perhaps the largest migration in the U.S. since the Great Depression. Anyone who is able is moving away from major cities into suburban and rural areas. But, home prices also have a historic habit of inflating along with currency devaluation. The cost of maintaining and remodeling an older home, or building a new home, rises as the prices of commodities like lumber inflate.

And lumber prices are certainly inflating! Softwood lumber prices are up at least 110% from a year ago, and are climbing as much as 10% in a week.

Home rentals also do not escape inflation, as the rising cost of maintaining properties forces landlords to increase rents. The only places where rents are decreasing are major cities that Americans are seeking to flee, such as New York and San Francisco.

 

Inflation In More Than Just Housing

The majority of commodities continue to see price inflation across the board. Food and energy prices have been creeping higher for the past year. Governments are once again blaming the pandemic and “stresses on the supply chain,” which may have been a believable claim nine months ago, but not today. Anything to hide the fact that all that stimulus has inflationary consequences.

Dollar devaluation is the most visible in terms of imported goods. In other words, it costs more dollars to buy goods outside the U.S. as the value of the dollar falls. And since the majority of U.S. retail is supplied by foreign producers, this means that average American consumers will suffer the brunt of inflationary consequences. Public stress and anger will be high.

 

Pandemic Lockdowns Are Just An Excuse

This is why the COVID-19 lockdowns must continue and the pandemic fear factory must remain active. The globalists need a cover event for the Reset and they need to keep the citizenry under control, and the pandemic can be blamed for just about anything. I think this is why we are already seeing the media hyping the existence of “COVID mutations.” Do not be surprised if the Biden Administration tries to implement a national lockdown sometime this year in the name of stopping the spread of a “more deadly” COVID-19 variant.

It won’t matter that the previous lockdowns were useless and all the data shows that keeping the economy open is a superior policy. It might seem like logic is going completely out the window, but there is a very logical reason for what is happening in the minds of globalists.

Stagflation comes into play through losses in certain sectors of the economy, high unemployment and the inability of wages to keep up with costs.

There is the continued dismantling of the small business sector, which, again, I believe is being destroyed deliberately. It’s not a mistake that small businesses were predominantly targeted as “non-essential” during the lockdowns. It’s also not a coincidence that the majority of COVID-19 PPP loans went to big box corporations while small businesses received almost nothing. The small business sector is being erased, leaving only the corporate sector to provide for consumers.

This may be why Democrats are so adamant about raising the federal minimum wage to $15 an hour. Wages are already rising according to market demand and region. The average non-skilled worker in the U.S. is making around $11 an hour. There is no need for the government to interfere, unless they have ulterior motives.

A $15 minimum wage would likely crush what’s left of small businesses, and only corporations that are receiving the bulk of stimulus dollars will be able to afford to pay workers the higher rate. On top of that, years from now the government could claim they “took action” to front-run stagflation by increasing people’s pay. But a $15 minimum wage is most useful to the establishment in the short term because it muddies the waters on the inflation issue.

Prices will continue to rise due to dollar devaluation, but the media and government will say that it has nothing to do with the dollar and everything to do with companies raising shelf prices to offset increased labor costs.

 

The Biggest Threat In The History Of American Society

I suspect that the establishment will do everything in its power to distract the public from the biggest threat in the history of American society – the stagflationary time bomb.

If they admit to its existence then the public could prepare for it, and they don’t want that. If Americans were to decentralize their local economies, support local small businesses instead of big box retailers, start producing necessities for themselves, and if they started developing currency alternatives like local scrip backed by commodities… then they would be able to survive a national financial crisis.

In fact, I guarantee that any community, county or state that takes these steps will immediately be targeted by the federal government, further revealing the truth: The establishment wants the public to suffer.

They want economic disaster. They do not want people to have the option of taking care of themselves. They need people scared, desperate and malleable, or they will never achieve their Reset agenda.

Is the American Dream Still Alive? (Infographic)

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Source: Strategic Culture Foundation

The post-WWII United States was at the peak of its soft power. One of its pillars was the American Dream. Every American could expect that his children would be better off – better off in every respect: healthier, longer-lived, better educated, happier, richer – than he was. Seventy years later, this dream seems to be blown to bits.

Lee Camp: It’s Time for Major Wealth Redistribution — Yes, I Mean It.

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No need to be all apologetic about it, either, since we would just be reclaiming the trillions taken by the billionaires.

By Lee Camp

Source: ScheerPost.org

It’s time for wealth redistribution. There, I said it.

I know it’s the third rail of politics, but I’m not running for a damn thing, which makes me free to speak the truth. (Well, I am running for president of my neighborhood elementary school’s PTA, but I’m pretty sure I’ll win easily since my campaign slogan is “Extend the school day to 20 hours because we don’t want to deal with those little monsters. You take ‘em!” . . . Well, I’ll win as long as they don’t find out I don’t have a child.)

Anyway, we desperately need wealth redistribution. And before anyone starts yelling something about Joseph Stalin, here’s the part that’s going to blow your mind — in the United States we’ve already had wealth redistribution for decades.

Fifty trillion dollars has been redistributed from the poorest Americans to the top one percent over the past several decades. That’s right, a new study shows the richest people in the world have stolen trillions from average Americans. To put this in easier to access terms — you know how mad you get when someone takes the last donut? Well, imagine that multiplied by 50 trillion. (Quick reminder: If you make $40,000 a year, it would take you 1.25 Billion years to make $50 trillion.)

The new study reveals, “…that the cumulative tab for our four-decade-long experiment in radical inequality has grown to over $47 trillion from 1975 through 2018. At a recent pace of about $2.5 trillion a year, that number we estimate crossed the $50 trillion mark by early 2020.”

And to be clear, this money has been stolen from nearly every American. Had income distribution and buying power remained the same as it was from the end of World War II to 1975, ” . . . the aggregate annual income of Americans earning below the 90th percentile would have been $2.5 trillion higher in the year 2018 alone. That is … enough to pay every single working American in the bottom nine deciles an additional $1,144 a month. Every month. Every single year.”

The richest people in America are pilfering over $1,100 from you personally and everyone you know every single month of every single year. Just imagine what each living soul in America could do with an extra $13,700 per year — how many people that would feed, how much less stressful their lives would be, how many fewer foreclosures there would be, and how many more people would get the healthcare they need. Yet every time the most modest tax increases are proposed on the richest Americans, or every time someone so much as mumbles about putting in a public jungle gym or putting in filters to take the metal chunks out of the water or fixing the holes in our bridges that are bigger than the ones in Maria Bartiromo’s head — every time someone brings up these common sense solutions, the elites of our society (who own the media outlets and the levers of the state and the law enforcement and the courts) start screaming from their wine-soaked ski resort orgy balconies, “That’s wealth redistribution! That’s class war!”

Meanwhile, most so-called “progressives” tip-toe around this subject, saying things like, “Well, we just want to slightly increase the taxes on the giant swimming pools filled with money of the wealthiest people. It would only impact people with billions of dollars, which is only a few individuals. We’re sorry. We’re so sorry to ask for this, Mr. Boss Man. Please forgive us.”

Enough of the pussy-footing. It’s time to demand true, full-on wealth redistribution. It’s time to say to the billionaires, “We’re taking your shit, and we’re giving it back to the society you stole it from. We’re taking your cars and your marble statues of your own ass and your boats that park inside your other boats and your emerald bathtubs filled with naked man servants and your inbred cross eyed ugly-ass dogs! . . . But you can keep your children. We don’t want those sociopaths in training. But other than that, we’re taking your stuff because this level of inequality is what most rational economists call ‘fucking nuts’.”

I will however give one caveat to make this go smoother. We only take back everything over $10 million. It’s estimated that there are about 1.4 million American households who have over $10 million. So that means what I’m proposing would impact less than one-half of one percent of Americans. The average American has never even met someone with over $10 million unless they shook Jim Carrey’s hand one time on a sidewalk in New York.

So we — the 99 percent — would take everything over $10 million from the people who have over $10 million. And we would give it out with the bottom 50 percent getting the vast majority of it. This means 99.5 percent of Americans would benefit from this redistribution of wealth. So, before you argue against this idea — Remember: you benefit. You would receive money. Because I promise there is no one with over $10 million reading this column right now, unless one banker accidentally clicked on this because it was next to the Wall Street Journal in his Twitter feed.

Do you need more numbers to hammer home the point? The billionaires in this country have increased their wealth by over $1.3 Trillion, an increase of 44 percent, just since the beginning of the pandemic.

One out of every three people in America have had trouble paying their bills during this pandemic.

Nearly 15 million people have lost their healthcare coverage just since the beginning of this pandemic.

And if you are the one person with over $10 million reading this, don’t give me that horse shit about, “I worked for that money. I earned that money.” No, no, no, no, you did not earn over $10 million. I know you didn’t because that’s impossible. It’s madness. It’s Gary Busey inside Charlie Sheen inside Ted Nugent. Taking the laws of physics into account, there is no way you worked a thousand times harder than a janitor or a sanitation worker or a nurse or a busboy or a fluffer or a fluffer’s second assistant fluffer intern. It’s physically impossible that you worked a thousand times harder than every “essential worker.” (Yes, fluffers are essential.)

What you did was merely take advantage of a system that is set up to exploit the vast majority of the society while most people don’t even realize what happened. That’s what you did because you’re a sociopath. Indeed, most of the Americans with over $10 million are sociopaths. They would kick a puppy down a flight of stairs into the teeth of a wool thresher if it meant they could make an extra $1,000. But I will acknowledge that not all of them are sociopaths. Some of them are relatively okay people working inside a breathtakingly corrupt system. So for the ones who are sociopaths, why should we feel bad for taking their wealth — over $10 million — and redistributing it? (They’re sociopaths after all. Lest we forget: they kick puppies.)

And then for the other ones, who are not sociopaths but still have over $10 million, they’re not going suffer because at the end of the day, they still have ten million goddamn dollars! It’s not like they’d suddenly be scraping by, clothing their children with cardboard boxes painted to look like shirts and bow ties.

So the next time someone says to you, “You can’t raise the taxes on the top 1% because that’s class war. It’s redistribution of wealth,” don’t respond the way most squishy liberals respond — “Ummm, ahhh, errr, no, uhhhh, I’m sorry.” Instead respond, “You’re damn right it is! I want redistribution of wealth. I want a nonviolent class war — because it has been done to the rest of us for the past 50 years at least. We have been exploited and abused, beaten down and defeated, kicked and slapped and scratched and drained and sucked dry and extracted and even burgled!” (Oh man, do I hate being burgled.)

Now is our time to fight back against this terrible machine that has allowed this unbelievable level of exploitation. Screw this system that allows some people to have enough money to end world hunger (literally Jeff Bezos could end world hunger many times over) and yet never do it, while other individuals sleep on a bench hoping no one steals their one box of cereal in the night. To put my conclusion into more sophisticated academic language — Fuck that.

This is an abusive relationship, and it’s time to get out.

The Mechanism of Invisible Empire

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“The invisible hand has created an invisible cage…blinding us and dividing us, allowing the ruling class to exploit us and subjugate us.”

By Hiroyuki Hamada

Source: Off-Guardian

When the whole society becomes a theater of absurdity, the puppeteers become kings and queens of insanity. The society loses its logic, history, facts, honesty, sincerity, creativity and imagination, as the monstrous imaginations of the deranged ruling class devour humanity and nature.

The invisible cage of authoritarianism comes in the shape of a bottomless pyramid. Fear and hopelessness fill the dimly lit bottom layers. Layers and layers separate us, alienate us and dehumanize us. The​ pain of “others” becomes your gain. The power of oppressors becomes your safety: The safety of living in the dangerous imaginations of the kings and queens.

But​ such a thought vanishes as quickly as our minds get flooded back with the numbing noises of the insane theater, while our remaining logic, seriousness and honesty are ridiculed and attacked by fearful fellow humans with cynicism, hopelessness and cowardliness.

The world doesn’t look like that at all for those who belong to the club of kings and queens. The unruly mass with no understanding of the righteous path of “humanity” has been inherently expendable for them. This has been shown over and over: colonization of natives by Europeans, enslavement of African people, genocides of many sorts.

But one also sees the same blunt inhumanity embedded among us today: homelessness, deaths by treatable diseases, hunger, deaths by substance abuse, suicide, poverty, refugees, mass incarceration, state violence, the psychological torture of alienation. The kings and queens don’t recognize those as issues to be solved with their resources.

Instead those issues represent forms of punishment for those who fail to secure viable positions within the capitalist hierarchy. The fear of the punishment and the fear of the authority work together to lock us in positions in the hierarchy, forcing us to protect our positions which systemically and structurally threaten our wellbeing 24/7; we live in a system of structural extortion.

As we have become free-range people in the “divine farm” of modern-day kings and queens, we have lost our access to the fundamental material reality. A sterile cage with screens, mandatory injections, electronic tracking within the invisible fence; human mice for profits, feed for data harvesting, an ever greater degree of spiritual death. It is not hard to start connecting the dots to see how things can lead into a grim future.

But what does such a fear do to the population, which has tolerated an assortment of abuses as their “punishment”? To those who manage to ignore their fellow humans living on the streets as invisible beings or fail to feel the pain of those being cornered into substance use and desperate acts of self-destruction?

Would they believe the words of those who question, or the words of the ruling class promising a glorious future of AI, green capitalism, genetic engineering, digitization and financialization?

And before we ask such a question, one must wonder if such a question is even allowed when the socioeconomic/political trajectory of the empire has been firmly within the imperial framework of the two capitalist political parties.

The capitalist hierarchy absorbs what it needs by allocating special positions within it: Natural resources, narratives, facts, history, people, political ideologies or anything that sits in time and space. The kings and queens monopolize them— material resources as well as people with skills and knowledge are captured to serve. Once monopolized, the valued items are commodified, to be distributed in ways that benefit those same kings and queens.

Meanwhile such a process occurs in layers and layers, projecting myths, exploitive narratives, false history and erroneous facts onto our collective consciousness—a fake reality which covers our eyes while we push our mortal bodies around in the real world.

The images projected onto our psyche vary according to our positions in the hierarchy. Each narrative validates and justifies our positions in the hierarchy. Kings and queens find themselves to be worthy rulers of the universe, while the masses see themselves as freedom-loving people who do their best in a world of opportunities.

In such an equation authoritarianism presents itself as a swinging pendulum between fascism and social democracy as it moves forward on the capitalist path in space and time. The carrot and stick carefully manage projected images to stay within the capitalist framework of acceptable ideas. Corporate politics and corporate activism play crucial roles in making the pendulum swing, therefore ensuring that the capitalist interests always go forward while appearing to be “democratic”.

Those who rely on terrorist tactics of various sorts attempt to resist the system by attacking the valuable, captured elements that work for the system. The damage compromises social dynamics in ways that deprive those who are already deprived, while dividing the population that should be uniting to dismantle the oppressive system.
Guided by agent provocateurs and corporate NGOs, righteous anger against oppressors turns into a justification for draconian measures, destruction of communities for urban renewal, and a catalyst for new projects of exploitation.

As a set of capitalist imperatives pushes the capitalist contradiction to the limit, completely depriving people’s ability to reconcile the false perceptions and the material reality, it is time for an urgent mobilization to change the trajectory of exploitation into a new field with a new set of rules. We are told that enemies are coming, a natural disaster is coming or a disease is coming, forcing us to mobilize ourselves to adjust to a new path of plundering for the kings and queens.

Any crisis, real or not, against the backdrop of a hierarchical structure imposes two sets of momentum that keep us within the capitalist farm. The first set has to do with fear of the authority, which keeps our frustration directed against ourselves, each other and oppressed “others”, while firmly gripping the destabilized psyche of the population—creating an ironic psychology of supporting oppressive authority against our own interests.

The second set has to do with the material constraints imposed by the particular crisis—we become enemies to each other fighting amongst ourselves to survive. We are put in the capitalist cage. And we are forced to protect our cage, which is constructed with vertical strength to withstand fear of the authority, horizontal strength to withstand attacks by competitors, and a solid floor to prevent one from falling down from the position in the hierarchy. The whole structure is held together with violent force of exploitation and subjugation.

THE GREAT RESET

”The Great Reset” is packaged as a “great solution”. Just like how the ruling class has marketed “green capitalism”—carbon trading, carbon capture, reforestation, and other resource exhausting green schemes and technologies for profit, it’s designed to prop up capitalism but it is also intended to transform capitalism to have more effective control of social relations while keeping the capitalist hierarchy intact.

Capitalism is getting a new OS, and it needs to be restarted. Just as “green capitalism” has destroyed real environmentalism in the name of saving the planet, it is designed to destroy anti-capitalist activism in the name of “revolution”.

One of the prominent leftist tools under a capitalist framework has been grass roots activism to affect state regulations and state guidelines to contain momentums of exploitation and subjugation created by Wall Street as well as capitalist social institutions. The stock market guided economy (falsely advertised as the only system that works) allows the ruling class to dominate social policies according to their interests; it prioritizes ruling class wealth accumulation while sacrificing social relations among the general population; it is extremely inefficient, unstable and economically unjust.

The capitalist state has been a great tool in ensuring the interests of the ruling class to be a priority. The socialist revolution takes over the capitalist state, it nationalizes corporate entities and sets up the economy, education and the rest of social institutions and social relations to be guided by people’s interests. Various incarnations of the above strategies to counter capitalist exploitation and encroaching imperial hegemony have attempted to do two major things.

First, they have prioritized people’s interests by emphasizing projects that benefit the general population while providing social safety nets, infrastructure for the people, environmental regulations and so on. Second, they have allowed economic activities based on people’s needs which can grow organic community dynamics based on humanity and nature.

“The Great Reset,” on the other hand, is a project of the ruling class meant to take away those measures from the people and utilize them to further solidify their dominance over the people. Since the owners of the farm are plenty rich already, they won’t need a big farm. Their social engineering skills as well as the greater control over the economy will be put to a test in building a sustainable farming business with a smaller herd.

This is why it seems that all activism has turned into enforcing or defying the various virus lockdown measures which have been instrumental in enforcing the trajectory of “The Great Reset.” Remember how all environmental activism was swallowed by the single idea of reducing carbon emission? Fearmongering slogans of apocalyptic narratives involving climate change, strong NGO guided activism, and corporate science emphasizing the topic of global warming have created the huge snowballing momentum to fight climate change at all costs, sidelining and coopting all other important environmental activism.

This has also contributed to the idea that it is no longer relevant to insist on being a part of systematic efforts in dismantling the capitalist system and building an alternate system which allows humanity and nature to prevail in harmony; we are told that we don’t have time to build socialism anymore. We are encouraged to be a part of green solutions by the capitalists as a result.

We are being told that casino capitalism for profits must end to introduce “stakeholder capitalism”. But of course, since the notion is coming from the profiteers who have colonized, corporatized, militarized and financialized, we can presume that they are talking about ensuring their own interests by directly guiding the economic decisions instead of continuing the show called the economy by the “invisible hand.” We are told that we should be provided with universal basic income, free housing and other social services as long as we follow the regulations and policies of public-private partnership.

What sort of conditioning will we be subjected to after being deprived of our inherent relationships to ourselves, to each other, to our communities and to nature, forced to be a part of destructive industrial farming, digitalization of everything with massive resource extraction, colonization of our communities with multinational franchises and enslavement of our souls in the invisible cage of indoctrination and propaganda?

We already have such a system in the US—it’s called mass incarceration in the private prison system. We are being told that the economy must not be merely guided by growth and it must be replaced by a sustainable one.

However, coming from those who have greatly restricted meaningful economic growth among the general population in order to subject livelihoods to the brutal capitalist framework, what they really mean is to restrict productive social relations among the people so that they must subsist with bare minimum requirements, eventually cornered to be a smaller herd, more manageable with less resources—an economic solution which can only be conceived by criminal minds. Who knows what role vaccines will play in it.

Who knows what sort of living hell people will be subjected to as our lives are treated like numbers in high frequency trading, or our entire lives are put on hold by AI customer representatives.

Note how the policies will be designed to be achieved by co-opting leftist agendas. The invisible hand has been busy building a brand new invisible cage to perpetuate the violent reign of kings and queens in the name of “revolution”—a fascist revolution that is.

Now, I would like to emphasize that these trajectories are not set in stone. The problem is that those possibilities are highly unlikely to be examined by concerned people within the capitalist framework. There is a structural problem in the system. Let me go back to the pendulum. Just like any other capitalist social institution, the capitalist political institution serves the ruling class; it can serve as a crime laundering devise. As soon as a topic involving criminal activities is destined to be “political”—it dissociates itself from criminal elements and becomes “legitimate”.

Various social institutions kick in to support such a view since they are all funded by the ruling class—media presents it as such, legislature codifies it as such, executive branch executes it as such, judicial branch judges it as such, academics support it as such, educational institution cements it as such and so on. It becomes normalized to be a part of social policies.

Once the topic is on the political table embellished with a glorious history and myths of the nationhood of the United States of America, the topic becomes officially “political”, not criminal, and it is now safely and generously handled by the corporate entities.

The rendered topic floats in an artificial realm of political myths, tradition, and the gladiator battle culture of political authorities as a commodified symbol representing a fictitious version of the actual topic. Ordinary people can’t approach it coherently for what it is anymore unless they are rich and influential enough to access all moneyed social institutions. Moreover, all the criminal records of officials are discarded, forgiven and forgotten as a new regime comes in every four years.

This is how destructive foreign policies of colonialism, corporatism and militarism, and exploitive predatory domestic policies of all sorts have been implemented against people in the name of freedom, justice and humanity. This is how environmental concerns have turned into “green capitalism”. This is how we are being mobilized today under the guise of virus lockdowns.

People watch and cheer the pendulum swing between political extremes within the capitalist framework. Bits and pieces of awareness beyond the imperial framework can only be perceived with tools approved by the framework, effectively keeping those with the awareness within the ideas of the ruling class.

If you hold a world view that does not fit in it, you end up being categorized as a supporter of a political villain or simply labeled as “fascist”, “communist” and so on. Needless to say those terms are solely defined by acceptable ideas, acceptable history and acceptable myths of the capitalist hegemony.

The fact that the US government has supported fascist regimes across the globe while brutally intervening against socialist countries across the globe won’t be admitted for instance.

HOW CAPITALIST HIERARCHY SHAPES IDEAS

If one holds a view that defies the prevalent narrative, the individual can become a target of the authority as well as a target of multiple political extremes within the capitalist hegemony. For instance, if you oppose Israeli war crimes from an anti-capitalist/anti-imperialist position, you can be persecuted as a dissident by the establishment, while being labeled as anti-Semitic by supporters of Israeli policies. (You may also be labeled a Zionist shill by those who believe that Jews are taking over the world and so on).

The position that points out that Israel is a crucial part of the imperial structure, serving the imperial hierarchy while benefiting from its generous support, cannot be fully discussed due to how narratives are formed by the network of the imperial institutions.

The political pendulum doesn’t only create an illusion of “democracy”, it also defines what is acceptable while tearing communities apart. It utilizes its violence as a springboard to perpetuate and strengthen its grip on the exploited.

That’s why the living hell for Palestinian people keeps functioning as a devise for imperialism—the more Palestinians suffer, the more anti-Semitic sentiment emerges, which in turn justifies Israeli violence, which in turn serves the imperial agendas. That’s why victims of Katarina had to be victimized by “urban renewal” after going through the gravely tragic event.

Capitalist hegemony does not allow an honest discussion because imperialism is kept invisible by default, the capitalist cage is invisible and the guiding hand of capitalists is invisible. The capitalist framework simply corners people into having dead-end arguments. Period.

With the virus situation, we are told that there are good people who wear masks and stay home and bad people who selfishly defy the rules and spread “conspiracy theories”. The dynamics among acceptable narratives within the capitalist framework create the circular arguments of a screaming match. These dynamics exclude and belittle any understanding which goes beyond the artificial range of ideas created by the capitalist institutions: you are fake news, you are a denier, you are a conspiracy theorist, you are a grandma killer, communists are taking over and so on. Without recognizing this mechanism, any attempt to unify the momentums will result in a populism which emulates the existing social structure—another reactionary revolution at best, but more likely it will create more divisions and destabilization among the people, resulting in perpetuation of the capitalist hierarchy.

This is why there is no discussion of accountability for the death and suffering created by lockdown measures and there is no discussion about the meaning of why we are going through a structural shift. And when the deaths and sufferings will be put on the political table, financial vultures will devour them in the emerging social impact bond markets (see studies by WRENCH IN THE GEARS).

The invisible hand that is supposed to guide us to freedom, justice and humanity has created an empire ruled by the unprecedented accumulation of power for the few. The invisible hand has created an invisible cage over us, and it has been blinding us and dividing us, allowing the ruling class to exploit us and subjugate us.

Now, it must be clearly stated that what we perceive as the dystopian future of The Fourth Industrial Revolution—AI, blockchain, digitalization, financialization, green capitalism and so on—can’t be separated from the invisible hand and the invisible cage. It cannot be allowed to be defined by capitalist institutions as a “legitimate political topic” instead of what it really is.

The newly built cage hasn’t been built, but if we fail to see it for what it is in its context, we will simply be forced to embrace some version of it as one of the “legitimate” capitalist trajectories. That’s how it works when our society is a theater of absurdity.

I want to live a life that breaks open the invisible cage and firmly shake hands with nature and humanity. If you have stuck around this far with me, I trust that you feel the same…or not. Either way, we must start our conversations.

What “Normal” Are We Returning To? The Depression Nobody Dares Acknowledge

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By Charles Hugh Smith

Source: Of Two Minds

Perhaps we need an honest national dialog about declining expectations, rising inequality, social depression and the failure of the status quo.

Even as the chirpy happy-talk of a return to normal floods the airwaves, what nobody dares acknowledge is that “normal” for a rising number of Americans is the social depression of downward mobility and social defeat.

Downward mobility is not a new trend–it’s simply accelerating. As this RAND Corporation report documents, ( Trends in Income From 1975 to 2018) $50 trillion in earnings has been transferred to the Financial Aristocracy from the bottom 90% of American households over the past 45 years.

Time magazine’s article on the report is remarkably direct: The Top 1% of Americans Have Taken $50 Trillion From the Bottom 90% — And That’s Made the U.S. Less Secure.

“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.”

I’ve been digging into downward mobility and social depression for years: Are You Really Middle Class?

The reality is that the middle class has been reduced to the sliver just below the top 5%–if we use the standards of the prosperous 1960s as a baseline.

The downward mobility isn’t just financial–it’s a decline in political power, control of one’s work and ownership of income-producing assets. This article reminds us of what the middle class once represented: What Middle Class? How bourgeois America is getting recast as a proletariat.

This reappraisal of the American Dream is also triggering a reappraisal of the middle class in the decades of widespread prosperity: The Myth of the Middle Class: Have Most Americans Always Been Poor?

Downward mobility excels in creating and distributing what I term social defeat: In my lexicon, social defeat is the spectrum of anxiety, insecurity, chronic stress, fear and powerlessness that accompanies declining financial security and social status.

Downward mobility and social defeat lead to social depression. Here are the conditions that characterize social depression:

1. High expectations of endlessly rising prosperity instilled as a birthright no longer align with economy reality.

2. Part-time and unemployed people are marginalized, not just financially but socially.

3. Widening income/wealth disparity as those in the top 10% pull away from the bottom 90%.

4. A systemic decline in social/economic mobility as it becomes increasingly difficult to move from dependence on the state or one’s parents to financial independence.

5. A widening disconnect between higher education and employment: a college/university degree no longer guarantees a stable, good-paying job.

6. A failure in the Status Quo institutions and mainstream media to recognize social depression as a reality.

7. A systemic failure of imagination within state and private-sector institutions on how to address social depression issues.

8. The abandonment of middle class aspirations: young people no longer aspire to (or cannot afford) consumerist status symbols such as luxury autos or conventional homeownership.

9. A generational abandonment of marriage, families and independent households as these are no longer affordable to those with part-time or unstable employment.

10. A loss of hope in the young generations as a result of the above conditions.

The rising tide of collective anger arising from social depression is visible in many places: road rage, violent street clashes between groups seething for a fight, the destruction of friendships for holding “incorrect” ideological views, and so on.

A coarsening of the entire social order is increasingly visible: The Age of Rudeness.

Depressive thoughts (and the emotions they generate) tend to be self-reinforcing, and this is why it’s so difficult to break out of depression once in its grip.

One part of the healing process is to expose the sources of anger that we are repressing. As psychiatrist Karen Horney explained in her 1950 masterwork, Neurosis and Human Growth: The Struggle Towards Self-Realization, anger at ourselves sometimes arises from our failure to live up to the many “shoulds” we’ve internalized, and the idealized track we’ve laid out for ourselves and our lives.

The article The American Dream Is Killing Us does a good job of explaining how our failure to obtain the expected rewards of “doing all the right things” (getting a college degree, working hard, etc.) breeds resentment and despair.

Since we did the “right things,” the system “should” deliver the financial rewards and security we expected. This systemic failure to deliver the promised rewards is eroding the social contract and social cohesion. Fewer and fewer people have a stake in the system.

We are increasingly angry at the system, but we reserve some anger for ourselves, because the mass-media trumpets how well the economy is doing and how some people are doing extremely well. Naturally, we wonder, why them and not us? The failure is thus internalized.

One response to this sense that the system no longer works as advertised is to seek the relative comfort of echo chambers–places we can go to hear confirmation that this systemic stagnation is the opposing ideological camp’s fault.

Part of the American Exceptionalism we hear so much about is a can-do optimism: set your mind to it and everything is possible.

The failure to prosper as anticipated is generating a range of negative emotions that are “un-American”: complaining that you didn’t get a high-paying secure job despite having a college degree (or advanced degree) sounds like sour-grapes: the message is you didn’t work hard enough, you didn’t get the right diploma, etc.

It can’t be the system that’s failed, right? I discuss this in my book Why Our Status Quo Failed and Is Beyond Reform: the top 10% who are benefiting mightily dominate politics and the media, and their assumption is: the system is working great for me, so it must be working great for everyone. This implicit narrative carries an implicit accusation that any failure is the fault of the individual, not the system.

The inability to express our despair and anger generates depression. Some people will redouble their efforts, others will seek to lay the blame on “the other” (some external group) and others will give up. What few people will do is look at the sources of systemic injustice and inequality.

Perhaps we need an honest national dialog about declining expectations, rising inequality and the failure of the status quo that avoids polarization and the internalization trap (i.e. it’s your own fault you’re not well-off).

We need to value honesty above fake happy-talk. Once we can speak honestly, there will be a foundation for optimism.