Archive for the ‘Economics’ Category

What a doomer (finance only) U.S. presidential candidate might have said to voters if the truth were told, according to Egon von Greyerz (Britishisms noted):

Our nation is bankrupt. We cannot make ends meet and we need to eliminate Medicare/Medicaid, Social Security and Defence totally to balance the budget. That will save us $3 trillion which almost covers the 2020 deficit.

The problem is that we expect a bigger deficit next year. Covid is paralysing major parts of the country and will be very costly. It will also have permanent negative effects. In addition, we expect major problems in the insolvent financial system. This will necessitate the printing of further trillions of dollars or even tens of trillions.

But as we print these dollars, we get an ever bigger problem. The value of the dollar will fall precipitously and we will need to print and borrow even more. That will create a vicious circle with a lower dollar, bigger deficits and bigger debts plus inflation.

So these are the facts. I am obviously very sorry to present these to you but I am certain that there can be no other outcome.

I sincerely hope that you will elect me on this platform. After all, I am the only presidential candidate in history who has told his people the truth and the real state of the nation.

And please don’t believe the fake promises of the other candidate. A liar doesn’t deserve to be president.

Finally, I promise to do my best to manage the coming disorderly collapse of the USA to the best of my ability.

Our society fixates on Nazi Germany with such masturbatory fascination because it allows
us to pretend that horrific mass-scale evil is just something that was inflicted in the past, by someone
else, in another part of the world, and not right here and now by our own government.
—Caitlin Johnstone

Johnstone continues to impress with her ability to concentrate a variety of ideological traits and behaviors into a succinct aphorism, though the one above isn’t especially short. Nazis are the canonical example of fixation, of course, but perusal of recent history indicates any number of others standing in today for yesteryear’s Nazis, e.g., Soviets/Russians, Islamofascists, and Chinese. U.S. thought leaders are sloppy that way. Fixation on others functions as an acute distancing (from ourselves) and distraction mechanism to avoid any discomfiting self-examination we might undertake, as well as to provide scapegoats for negative identity that drives American psychosis. We’re not alone in that regard.

National identity is not the primary subject of this blog post, however. It’s how the United States (in particular, but the rest of the world in the wake of its example) has become a shit show of mismanagement and dysfunction, or put another way, how the U.S. has become a failed state. Quite an accomplishment considering that, for at least a little while longer, the U.S. is the world’s hegemon.

Have a look at this list of the federal executive departments and their chiefs:

  • Dept. of State — Secretary Mike Pompeo
  • Dept. of Treasury — Secretary Steven Mnuchin
  • Dept. of Defense — Secretary Dr. Mark T. Esper
  • Dept. of Justice — Attorney General William P. Barr
  • Dept. of Interior — Secretary David Bernhardt
  • Dept. of Agriculture (USDA) — Secretary Sonny Perdue III
  • Dept. of Commerce — Secretary Wilbur L. Ross, Jr.
  • Dept. of Labor — Secretary Eugene Scalia
  • Dept. of Health and Human Services (HHS) — Secretary Alex Azar
  • Dept. of Housing and Urban Development (HUD) — Secretary Ben Carson
  • Dept. of Transportation (DOT) — Secretary Elaine Chao
  • Dept. of Energy (DOE) — Secretary Rick Perry
  • Dept. of Education — Secretary Betsy DeVos
  • Dept. of Veterans Affairs (VA) — Secretary Robert Wilkie
  • Dept. of Homeland Security — Acting Secretary Chad Wolf

Budgets for these departments range from just under $10 billion to nearly $1.3 trillion, covering most of areas of American life outside of entertainment (including the arts, sports, games, and what some argue is the preeminent art form during lockdown, streaming TV). Of those chiefs above, the most infamous ones are known because they’re embroiled in ongoing controversy or were appointed to dismantle the department itself — a cynical Republican strategy to ruin, not run, various government activities. A blurb behind each one demonstrating its most abject failure would be relatively easy to compile, but I demur. Instead, here’s a cogent example: James Howard Kunstler’s assessment of the death of education. Another example is a YouTube video called “Seattle is Dying,” a local news documentary from March 2019 (well before the pandemic) about how homelessness is ruining Seattle. People literally living and dying in the streets had been in mind when this was published a couple days ago:

Clearly, the situation in Seattle (and indeed, every American city) is poised to get very much worse. The U.S. is a failed state, yet our elected government is driving it further into the ground. As bad as everything is now, amidst a global pandemic, unemployment and homelessness spiking unprecedentedly, debt being piled onto taxpayers to keep asset prices high (read: to keep the wealthy whole), and what Caitlin Johnstone calls a slo-mo war against those few countries not yet absorbed into the U.S. empire’s power nexus, there is still that other looming catastrophe going largely ignored: climate change. Xray Mike came back to life at his blog (where I used to post as well) to remind that things around the world are still every bit as awful (and worsening) as one could imagine:

As governments stared glass-eyed at what was unfolding in China earlier this year, the fragility of modern life’s interconnectedness was soon to be laid bare by a microscopic organism. Within a couple months of the onset of the coronavirus pandemic, airline travel from China had spread the novel virus to more than 60 countries. Despite decades of warnings about the inevitability of such an event, politicians had paid about as much lip service to preventing the next pandemic as they had to dealing with climate change. As has been warned by health experts, the best we can hope for is to blunt the effects of the COVID-19 disease on the global population; eradicating it will be futile. Something similar could be said of the legacy effects of our CO2 emissions which will haunt life on Earth for time immemorial. [underlying links removed]

We are not just a failed state but a failed civilization. But hey, vote for one of the two stooges offered by the failed two-party system in the sham presidential election in two months. How could it possibly get any worse?

This 9-year-old blog post continues to attract attention. I suspect the reason behind sustained interest is use of the term structural violence, which sits adjacent to voguish use of the term structural racism. Existence of permanent, institutionalized violence administered procedurally rather than through blunt, behavioral force (arguably still force but obfuscated through layers of bureaucracy) seems pretty plain to most observers. Typical analyses cite patriarchy and white supremacism as principal motivators, and those elements are certainly present throughout American history right up to today. I offer a simpler explanation: greed. Thus, most (though not all) institutionalized violence can be chalked up to class warfare, with the ownership class and its minions openly exacting tribute and stealing everyone’s future. Basically, all resources (material, labor, tax dollars, debt, etc.) can be attached, and those best positioned to bend administrative operations to their will — while pretending to help commoners — stand to gain immensely.

It doesn’t much matter anymore whose resources are involved (pick your oppressed demographic). Any pool is good enough to drain. But because this particular type of violence has become structural, after gathering the demographic data, it’s an easy misdirection to spin the narrative according to divergent group results (e.g., housing, educational opportunity, incarceration rates) where such enduring structures have been erected. While there is certainly some historical truth to that version of the story, the largest inanimate resource pools are not readily divisible that way. For instance, trillions of dollars currently being created out of nothingness to prop up Wall Street (read: the ownership class) redound upon the entire U.S. tax base. It’s not demographically focused (besides the beneficiaries, obviously) but is quite literally looting the treasury. Much the same can be said of subscriber and customer bases of commercial behemoths such as Walmart, Amazon, McDonald’s, and Netflix. Those dollars are widely sourced. One can observe, too, that the ownership class eschews such pedestrian fare. Elites avoiding common American experience is reflected as well in the U.S. armed services, where (depending on whom one believes: see here and here) participation (especially enlisted men and women) skews toward the working class. Consider numerous recent U.S. presidents (and their offspring) who manage to skip out on prospective military service.

What’s surprising, perhaps, is that it’s taken so long for this entrenched state of affairs (structural violence visited on all of us not wealthy enough to be supranational) to be recognized and acted upon by the masses. The Occupy Movement was a recent nonviolent suggestion that we, the 99%, have had quite enough of this shit. Or course, it got brutally shut down and dispersed. A couple days ago, a caravan of looters descended upon the so-called Magnificent Mile in Chicago, the site of numerous flagship stores of luxury brands and general retailers. I don’t approve of such criminal activity any more than the ownership class looting the treasury. But it’s not hard to imagine that, in the minds of some of the Chicago looters at least, their livelihoods and futures have been actively stolen from them. “Look, over there! In that window! Resources for the benefit of rich people. They’ve been stealing from us for generations. Now let’s steal from them.” The big difference is that designer handbags, electronics, and liquor hauled away from breached storefronts is relatively minor compared to structural violence of which we’ve become more acutely aware recently. Put another way, complaining about these looters while ignoring those looters is like complaining about someone pulling your hair while someone else is severing your legs with a chainsaw, leaving you permanently disabled (if not dead). They’re not even remotely in the same world of harm.

The previous version of this blog post was about flora and fauna dying off and/or being driven to endangerment and extinction by direct and indirect effects of human activity, and on the flip side, collective human inactivity to stop or forestall the worst effects. Indeed, removal and rollback of environmental restrictions and regulations hasten the ongoing ecocide. This version is about three more things disappearing right before our eyes like some sort of macabre magic act: American jobs, American businesses, and civil society.

Job losses stemming from the Covid-19 pandemic and government-mandated shut-downs and quarantines have been reported ad nauseum, as have mounting deaths. No need to cite the numbers. To call this disappearance of people from the streets and workplaces sickening is a redundancy. Despite an immediate Federal response (by the Fed) to prop up the stock market (a literal entity) but not main street (a figurative entity), businesses both large and small are now performing this same disappearing act. Again, no need to cite the numbers, which are worsening continuously. It’s impossible to predict what will be left after this destructive phase runs its course. I don’t expect it to be creative destruction (also the name of the defunct group blog where I got my start blogging). In the meantime, however, plenty of price gougers, vultures, scammers, and opportunists seek to exploit new capitalist dynamics. As the unemployed and disenfranchised are further reduced to penury, many have taken to the streets to demand change. While the inciting incident was yet another unarmed black man killed by police in the course of his arrest, the wider context of unrest in the streets is the utterly preposterous level of wealth and income inequality. Two short-lived sovereign zones in Seattle and Portland (declared and undeclared, respectively) attest to a lack of confidence in state authority and fraying rule of law. Federal law enforcement officers disappearing protesters from the street speaks volumes regarding how the citizenry is regarded by politicians. The looming wave of evictions, foreclosures, and bankruptcies also promise to overwhelm civil society and prove the illegitimacy of our current government.

The connection between one set of disappearing acts and the next should be obvious, as we humans rely upon the natural world for our very survival. The modern industrial world, especially in those societies organized around capitalism, has been at war with nature (ecocide), extracting far more than necessary for a balanced, respectable life. Instead, wanton accumulation and self-aggrandizement (read: ballin’) are commonplace, at least for those who can. In the process, we’ve made ourselves vulnerable to even modest perturbations of this hypercomplex style of social organization. Well, surprise! The war on nature is no longer taking place over there, socially distanced, out of sight and out of mind; the war has come home. Nature struck back, blindly demanding a return to equilibrium. The disappearing act turns out to be part of a much larger balancing act. However, processes we humans initiated make impossible any such return except perhaps over evolutionary time. For the foreseeable future, the only paved path is toward unfathomable loss.

Caveat: rather overlong for me, but I got rolling …

One of the better articles I’ve read about the pandemic is this one by Robert Skidelsky at Project Syndicate (a publication I’ve never heard of before). It reads as only slightly conspiratorial, purporting to reveal the true motivation for lockdowns and social distancing, namely, so-called herd immunity. If that’s the case, it’s basically a silent admission that no cure, vaccine, or inoculation is forthcoming and the spread of the virus can only be managed modestly until it has essentially raced through the population. Of course, the virus cannot be allowed to simply run its course unimpeded, but available impediments are limited. “Flattening the curve,” or distributing the infection and death rates over time, is the only attainable strategy and objective.

Wedding mathematical and biological insights, as well as the law of mass action in chemistry, into an epidemic model may seem obvious now, but it was novel roughly a century ago. We’re also now inclined, if scientifically oriented and informed, to understand the problem and its potential solutions management in terms of engineering rather than medicine (or maybe in terms of triage and palliation). Global response has also made the pandemic into a political issue as governments obfuscate and conceal true motivations behind their handling (bumbling in the U.S.) of the pandemic. Curiously, the article also mentions financial contagion, which is shaping up to be worse in both severity and duration than the viral pandemic itself.

(more…)

/rant on

Had a rather dark thought, which recurs but then fades out of awareness and memory until conditions reassert it. Simply put, it’s that the mover-shaker-decision-maker sociopaths types in government, corporations, and elsewhere (I refuse to use the term influencer) are typically well protected (primarily by virtue of immense wealth) from threats regular folks face and are accordingly only too willing to sit idly by, scarcely lifting a finger in aid or assistance, and watch dispassionately as others scramble and scrape in response to the buffeting torrents of history. The famous example (even if not wholly accurate) of patrician, disdainful lack of empathy toward others’ plight is Marie Antoinette’s famous remark: “Let them eat cake.” Citing an 18th-century monarch indicates that such tone-deaf sentiment has been around for a long time.

Let me put it another way, since many of our problems are of our own creation. Our styles of social organization and their concomitant institutions are so overloaded with internal conflict and corruption, which we refuse to eradicate, that it’s as though we continuously tempt fate like fools playing Russian roulette. If we were truly a unified nation, maybe we’d wise up and adopt a different organizational model. But we don’t shoulder risk or enjoy reward evenly. Rather, the disenfranchised and most vulnerable among us, determined a variety of ways but forming a substantial majority, have revolvers to their heads with a single bullet in one of five or six chambers while the least vulnerable (the notorious 1%) have, in effect, thousands or millions of chambers and an exceedingly remote chance of firing the one with the bullet. Thus, vulnerability roulette.

In the midst of an epochal pandemic and financial crisis, who gets sacrificed like so much cannon fodder while others retreat onto their ocean-going yachts or into their boltholes to isolate from the rabble? Everyone knows it’s always the bottom rungs of the socioeconomic ladder who unjustly suffer the worst, a distinctly raw deal unlikely ever to change. The middle rungs are also suffering now as contraction affects more and more formerly enfranchised groups. Meanwhile, those at the top use crises as opportunities for further plunder. In an article in Rolling Stone, independent journalist Matt Taibbi, who covered the 2008 financial collapse, observes that our fearless leaders (fearless because they secure themselves before and above all else) again made whole the wealthiest few at the considerable expense of the rest:

The $2.3 trillion CARES Act, the Donald Trump-led rescue package signed into law on March 27th, is a radical rethink of American capitalism. It retains all the cruelties of the free market for those who live and work in the real world, but turns the paper economy into a state protectorate, surrounded by a kind of Trumpian Money Wall that is designed to keep the investor class safe from fear of loss.

This financial economy is a fantasy casino, where the winnings are real but free chips cover the losses. For a rarefied segment of society, failure is being written out of the capitalist bargain.

Why is this a “radical rethink”? We’ve seen identical behaviors before: privatization of profit, indemnification of loss, looting of the treasury, and refusal to prosecute exploitation, torture, and crimes against humanity. Referring specifically to financialization, this is what the phrase “too big to fail” means in a nutshell, and we’ve been down this stretch of road repeatedly.

Naturally, the investor class isn’t ordered back to work at slaughterhouses and groceries to brave the epidemic. Low-wage laborers are. Interestingly, well compensated healthcare workers are also on the vulnerability roulette firing line — part of their professional oaths and duties — but that industry is straining under pressure from its inability to maintain profitability during the pandemic. Many healthcare workers are being sacrificed, too. Then there are tens of millions newly unemployed and uninsured being told that the roulette must continue into further months of quarantine, the equivalent of adding bullets to the chambers until their destruction is assured. The pittance of support for those folks (relief checks delayed or missing w/o explanation or recourse and unemployment insurance if one qualifies, meaning not having already been forced into the gig economy) does little to stave off catastrophe.

Others around the Web have examined the details of several rounds of bailout legislation and found them unjust in the extreme. Many of the provisions actually heap insult and further injury upon injury. Steps that could have been taken, and in some instances were undertaken in past crises (such as during the Great Depression), don’t even rate consideration. Those safeguards might include debt cancellation, universal basic income (perhaps temporary), government-supported healthcare for all, and reemployment through New Deal-style programs. Instead, the masses are largely left to fend for themselves, much like the failed Federal response to Hurricane Katrina.

Some of this is no doubt ideological. A professional class of ruling elites are the only ones to be entrusted with guiding the ship of state, or so goes the political philosophy. But in our capitalist system, government has been purposefully hamstrung and hollowed out to the point of dysfunction precisely so that private enterprise can step in. And when magical market forces fail to stem the slide into oblivion, “Welp, sorry, th-th-that’s all folks,” say the supposed elite. “Nothing we can do to ease your suffering! Our attentions turn instead to ourselves, the courtiers and sycophants surrounding us, and the institutions that enable our perfidy. Now go fuck off somewhere and die, troubling us no more.”

/rant off

I’ll try to be relatively brief, since I’ve been blogging about industrial and ecological collapse for more than a decade. Jeff Gibbs released a new documentary called Planet of the Humans (sideways nod to the dystopian movie franchises Planet of the Apes — as though humans aren’t also apes). Gibbs gets top billing as the director, but this is clearly a Michael Moore film, who gets secondary billing as the executing producer. The film includes many of Moore’s established eccentricities, minus the humor, and is basically an exposé on greenwashing: the tendency of government agencies, environmental activists, and capitalist enterprises to coopt and transform earnest environmental concern into further profit-driven destruction of the natural environment. Should be no surprise to anyone paying attention, despite the array of eco-luminaries making speeches and soundbites about “green” technologies that purport to save us from rendering the planet uninhabitable. Watching them fumble and evade when answering simple, direct questions is a clear indication of failed public-relations approaches to shaping the narrative.

Turns out that those ballyhooed energy sources (e.g., wind, solar, biofuel, biomass) ride on the back of fossil fuels and aren’t any more green or sustainable than the old energy sources they pretend to replace. Again, no surprise if one has even a basic understanding of the dynamics of energy production and consumption. That admittedly sounds awfully jaded, but the truth has been out there for a long time already for anyone willing and able to confront it. Similarly, the documentary mentions overpopulation, another notorious elephant in the room (or herd of elephants, as aptly put in the film), but it’s not fully developed. Entirely absent is any question of not meeting energy demand. That omission is especially timely given how, with the worldwide economy substantially scaled back at present and with it significant demand destruction (besides electricity), the price of oil has fallen through the floor. Nope, the tacit assumption is that energy demand must be met despite all the awful short- and long-term consequences.

Newsfeeds indicate that the film has sparked considerable controversy in only a few days following release. Debate is to be expected considering a coherent energy strategy has never been developed or agreed upon and interested parties have a lot riding on outcomes. Not to indulge in hyperbole, but the entire human race is bound up in the outcome, too, and it doesn’t look good for us or most of the rest of the species inhabiting the planet. Thus, I was modestly dismayed when the end of the film wandered into happy chapter territory and offered the nonsensical platitude in voiceover, “If we get ourselves under control, all things are possible.” Because we’ve passed and in fact lapped the point of no return repeatedly, the range of possibilities has shrunk precipitously. The most obvious is that human population of 7.7 billion (and counting) is being sorely tested. If we’re being honest with ourselves, we also know that post-pandemic there can be no return to the world we’ve known for the past 70 years or so. Although the documentary could not be reasonably expected to be entirely up to date, it should at least have had the nerve to conclude what the past few decades have demonstrated with abundant clarity.

Addendum

This review provides support for my assessment that “green” or “sustainable” energy cannot be delivered without significant contribution of fossil fuels.

Here’s a rather strange interaction: destruction budgets and moral license. The former refers to a theoretical or proposed budget for allowable environmental destruction. The latter refers to how doing something good allows rationalization of doing something bad as though one offsets (recognize that word?) the other. A familiar example is a physical workout that justifies a later sugar binge.

So just maybe some (outside executive offices anyway) are coming round to the idea that ongoing destruction of nature ought to be curtailed or better regulated. That’s the thrust of an article in Nature that mentions emissions budgets, which I’ve renamed destruction budgets. The article provides a decent overview of the largest threats, or environmental tipping points, that lead to an uninhabitable Earth. Human activity isn’t only about greenhouse gas emissions, however. Because industrial civilization has essentially had an unlimited destruction budget in the past, we’ve depleted and toxified air, soil, and water at such an alarming rate that we now have a limited number of harvests left and already face fresh water shortages that are only expected to worsen.

Turning to the viral pandemic, large segments of the population kept at home on lockdown triggered a different sort of destruction budget that didn’t exist before it suddenly did: economic destruction, joblessness, and financial ruin. For many Americans already stretched thin financially and psychologically, if the virus doesn’t get you first, then bankruptcy and despair will. Several rounds of bailouts (based on money that doesn’t exist) followed the economic slowdown and are freighted with moral hazard and moral license. Prior bailouts make clear where most of the money goes: deep corporate pockets, banks, and Wall Street. According to this unsophisticated poll, a clear majority do not want banks and financial institutions bailed out. There is even stronger public support for conditions on corporate bailouts, especially those conditions designed to protect employees.

Since we’re in wildly uncharted terrain from only 1.5 months of whatever this new paradigm is, it’s nearly impossible to predict what will occur by summertime or the fall. We’ve blown way past any reasonable destruction budget. In truth, such budgets probably never existed in the first place but were only used as metaphors to make plans no one expects to be binding, much like the toothless 2016 Paris Agreement. Every time we set a hypothetical self-imposed limit, we exceed it. That’s why, to me at least, 350.org is such a cruel joke: the target ceiling was breached decades before the organization was even founded in 2009 and hasn’t slowed its rate of increase since then. In effect, we’ve given ourselves license to disregard any imaginary budgets we might impose on ourselves. The pertinent question was raised by Thomas Massie (KY-Rep.) in the first new bailout bill when he openly challenged the number: “If getting us into $6 trillion more debt doesn’t matter, then why are we not getting $350 trillion more in debt so that we can give a check of $1 million to every person in the country?” How weird is it that both issues cite the number 350?

The old saw goes that acting may be just fine as a creative endeavor, but given the opportunity, most actors really want to direct. A similar remark is often made of orchestral musicians, namely, that most rank-and-file players would really rather conduct. Directing and conducting may not be the central focus of creative work in their respective genres. After all, directors don’t normally appear onscreen and conductors make no sound. Instead, they coordinate the activities of an array of creative folks, putting directors in a unique position to bring about a singular vision in otherwise collaborative work. A further example is the Will to Power (associated with Friedrich Nietzsche and Arthur Schopenhauer) characteristic of those who wish to rule (as distinguished from those who wish to serve) such as regents, dictators, and autocrats. All of this sprang to mind because, despite outward appearance of a free, open society in the U.S., recent history demonstrates that the powers that be have instituted a directed election and directed economy quite at odds with democracy or popular opinion.

The nearest analogy is probably the directed verdict, where a judge removes the verdict from the hands or responsibility of the jury by directing the jury to return a particular verdict. In short, the judge decides the case for the jury, making the jury moot. I have no idea how commonplace directed verdicts are in practice.

Directed Election

Now that progressive candidates have been run out of the Democratic primaries, the U.S. presidential election boils down to which stooge to install (or retain) in November. Even if Biden is eventually swapped out for another Democrat in a brokered nominating convention (highly likely according to many), it’s certain to be someone fully amenable to entrenched corporate/financial interests. Accordingly, the deciders won’t be the folks who dutifully showed up and voted in their state primaries and caucuses but instead party leaders. One could try to argue that as elected representatives of the people, party leaders act on behalf of their constituencies (governing by consent of the people), but some serious straining is needed to arrive at that view. Votes cast in the primaries thus far demonstrate persistent desire for something distinctly other than the status quo, at least in the progressive wing of the Democratic party. Applying the cinematic metaphor of the top paragraph, voters are a cast of thousands millions being directed within a larger political theater toward a predetermined result.

Anyone paying attention knows that voters are rarely given options that aren’t in fact different flavors of the same pro-corporate agenda. Thus, no matter whom we manage to elect in November, the outcome has already been engineered. This is true not only by virtue of the narrow range of candidates able to maneuver successfully through the electoral gauntlet but also because of perennial distortions of the balloting process such as gerrymandering, voter suppression, and election fraud. Claims that both sides (really just one side) indulge in such practices so everything evens out don’t convince me.

Directed Economy

Conservative economists and market fundamentalists never seem to tire of arguments in the abstract that capitalist mechanisms of economics, left alone (unregulated, laissez-faire) to work their magic, deliver optimal outcomes when it comes to social and economic justice. Among the primary mechanisms is price discovery. However, economic practice never even remotely approaches the purity of abstraction because malefactors continuously distort and game economic systems out of self-interest greed. Price discovery is broken and equitable economic activity is made fundamentally fictitious. For example, the market for gemstones is famously inflated by a narrow consortium of sellers having successfully directed consumers to adopt a cultural standard of spending three months’ wages/salary for a wedding band as a demonstration of one’s love and devotion. In the opposite direction, precious metal spot prices are suppressed despite very high demand and nearly nonexistent supply. Current quoted premiums over spot silver price, even though no delivery is contemplated, range from roughly 20% to an absurd 2,000%. Supply and demand curves no longer function to aid in true price discovery (if such a thing ever existed). In a more banal sense, what people are willing to pay for a burger at a fast food joint or a loaf of bread at the grocery may affect the price charged more directly.

Nowhere is it more true that we’ve shifted to a directed economy than with the stock market (i.e., Wall Street vs. Main Street). As with the housing market, a real-world application with which many people have personal experience, if a buyer of a property or asset fails to appear within a certain time frame (longer for housing, shorter for stock, bonds, and other financial instruments), the seller is generally obliged to lower the price until a buyer finally appears. Some housing markets extraordinarily flush with money (e.g., Silicon Valley and Manhattan) trigger wild speculation and inflated prices that drive out all but the wealthiest buyers. Moreover, when the eventual buyer turns out to be a bank, corporation, or government entity willing to overpay for the property or asset using someone else’s money, the market becomes wholly artificial. This has been the case with the stock market for the last twelve years, with cheap money being injected nonstop via bailouts and quantitative easing to keep asset prices inflated. When fundamental instabilities began dragging the stock market down last fall, accelerating precipitous in early spring of this year and resulting in yet another crash (albeit brief), the so-called Plunge Protection Team sprang into action and wished trillions of dollars (taxpayer debt, actually, and over the objections of taxpayers in a classic fool-me-once scenario) into existence to perpetuate the casino economy and keep asset prices inflated for the foreseeable future, which isn’t very long.

The beneficiaries of this largesse are the same as they have always been when tax monies and public debt are concerned: corporations, banks, and the wealthy. Government economic supports are directed to these entities, leaving all others in the lurch. Claims that bailouts to keep large corporate entities and wealthy individuals whole so that the larger economy doesn’t seize up and fail catastrophically are preposterous because the larger economy already has seized up and failed catastrophically while the population is mostly quarantined, throwing many individuals out of work and shuttering many businesses. A reasonable expectation of widespread insolvency and bankruptcy lingers, waiting for the workouts and numbers to mount up.

The power of the purse possessed by the U.S. Congress hasn’t been used to help the citizenry since the New Deal era of FDR. Instead, military budgets and debts expand enormously while entitlements and services to the needy and vulnerable are whittled away. Citizen rebellions are already underway in small measure, mostly aimed at the quarantines. When bankruptcies, evictions, and foreclosures start to swell, watch out. Our leaders’ fundamental mismanagement of human affairs is unlikely to be swallowed quietly.

The first time I wrote on this title was here. I’m pretty satisfied with that 11-year-old blog post. Only recently, I copped to use of reframing to either zoom in on detail or zoom out to context, a familiar rhetorical device. Here I’m zooming out again to the god’s eye view of things.

The launching point for me is James Howard Kunstler’s recent blog post explaining and apologizing for his generation’s principal error: financialization of the U.S. economy. In that post, he identifies characteristics in grandparents and parents of boomers as each responds and adapts to difficulties of the most self-destructive century in human history. Things destroyed include more than just lives, livelihoods, and the biosphere. After several centuries of rising expectations and faith in progress (or simply religious faith), perhaps the most telling destruction is morale, first in the reckless waste of WWI (the first mechanized war), then repeatedly in serial economic and political catastrophes and wars that litter the historical record right up to today. So it’s unsurprising (but not excusable) that boomers, seeing in unavoidable long-term destruction our powerlessness to master ourselves or in fact much of anything — despite the paradox of developing and obtaining more power at every opportunity — embarked on a project to gather to themselves as much short-term wealth and power as possible because, well, why the fuck not? Kunstler’s blog post is good, and he admits that although the masters-of-the-universe financial wizards who converted the economy into a rigged casino/carnival game for their own benefit are all boomers, not all boomers are responsible except in the passive sense that we (includes me, though I’m just as powerless as the next) have allowed it to transpire without the necessary corrective: revolt.

Zooming out, however, I’m reminded of Jared Diamond’s assessment that the greatest mistake humans ever committed was the Agricultural Revolution 10–13 millennia ago. That context might be too wide, so let me restrict to the last 500 years. One theory propounded by Morris Berman in his book Why America Failed (2011) is that after the discovery of the New World, the cohort most involved in colonizing North America was those most desperate and thus inclined to accept largely unknown risks. To them, the lack of ontological security and contingent nature of their own lives were undeniable truths that in turn drive distortion of the human psyche. Thus, American history and character are full of abominations hardly compensated for by parallel glories. Are boomers, or more generally Americans, really any worse than others throughout history? Probably not. Too many counter-examples to cite.

The current endgame phase of history is difficult to assess as we experience it. However, a curious theory came to my attention that fits well with my observation of a fundamental epistemological crisis that has made human cognition into a hall of mirrors. (See also here and here, and I admit cognition may have always been a self-deception.) In a recent Joe Rogan podcast, Eric Weinstein, who comes across as equally brilliant and disturbed (admitting that not much may separate those two categories), opines that humans can handle only 3–4 layers of deception before collapsing into disorientation. It’s probably a feature, not a bug, and many have learned to exploit it. The example Weinstein discusses (derivative of others’ analyses, I think) is professional wrestling. Fans and critics knew for a very long time that wrestling looks fake, yet until the late 1980s, wrestlers and promoters held fast to the façade that wresting matches are real sporting competitions rather than being “sports entertainments.” Once the jig was up, it turned out that fans didn’t really care; it was real enough for them. Now we’ve come full circle with arguments (and the term kayfabe) that although matches are staged and outcomes known in advance, the wresting itself is absolutely for real. So we encounter a paradox where what we’re told and shown is real, except that it isn’t, except that it sorta is, ultimately finding that it’s turtles all the way down. Enthusiastic, even rabid, embrace of the unreality of things is now a prime feature of the way we conduct ourselves.

Professional wrestling was not the first organization or endeavor to offer this style of mind-bending unreality. Deception and disinformation (e.g., magic shows, fortune-telling, con jobs, psyops) have been around forever. However, wrestling may well have perfected the style for entertainment purposes, which has in turn infiltrated nearly all aspects of modern life, not least of which are economics and politics. Thus, we have crypto- and fiat currencies based on nothing, where money can be materialized out of thin air to save itself from worthlessness, at least until that jig is up, too. We also have twin sham candidates for this fall’s U.S. presidential election, both clearly unfit for the job for different reasons. And in straightforward fictional entertainment, we have a strong revival of magical Medievalism, complete with mythical creatures, spells, and blades of fortune. As with economics and politics, we know it’s all a complex of brazen lies and gaslighting, but it’s nonetheless so tantalizing that its entertainment value outstrips and sidelines any calls to fidelity or integrity. Spectacle and fakery are frankly more interesting, more fun, more satisfying. Which brings me to my favorite Joe Bageant quote:

We have embraced the machinery of our undoing as recreation.