Error: Embedded data could not be displayed.




Economic Decay Leads to Social and Political Decay

October 17, 2019

If we want to make real progress, we have to properly diagnose the structural sources of the rot that is spreading quickly into every nook and cranny of the society and culture.

It seems my rant yesterday (Let Me Know When It's Over) upset a lot of people, many of whom felt I trivialized the differences between the parties and all the reforms that people believe will right wrongs and reduce suffering.

OK, I get it, there are differences, but if the "reform" doesn't change the source of the suffering and injustice, it's just window-dressing that makes the supporter feel virtuous. Want an example? Let's take the the "cruel and unusual punishment" for drug-law offenders, many of whom are African-American males whose lives are effectively hobbled by felony convictions and long sentences in America's Drug War Gulag.

You want a "reform" that actually gets to the root and solves the source of the injustice? It's simple: decriminalize all drugs and recognize drug use as a medical and social issue rather than a criminal-justice / Gulag issue. But that won't happen because too many people are making too much money off the Gulag, which is now a public and private-prison Gulag.

(Other advanced nations have had success with this structural change. Maybe we could learn something from their examples?)

If you're not ready to demand the full decriminalization of all drugs, then you're not really interested in solving the problem; you're just seeking virtue-signaling "reforms" that don't upset the power structure. And since any real solution necessarily disrupts the power structure benefiting from the status quo, all the painless "reforms" are ineffective.

In other words, either go big and change the power structure or go home and stop promoting your own virtue. This is why the economy is floundering despite all the warm and fuzzy headlines about stocks rising due to the Federal Reserve lowering interest rates: we collectively refuse to consider structural changes in the way "money" is created in our perverse system--perverse because the way "money" is created guarantees soaring inequality.

If you don't change the way "money" is created and distributed, you change nothing. Did the thousands of pages of financial regulations passed after the 2008-09 debacle reverse wealth and income inequality? The answer is no, wealth inequality is rising even faster after all the feel-good "reforms." The net result of the "reforms" is the costs of compliance for banks went up substantially, and that regulatory moat simply pushed risky lending outside the banking system.

In other words, the sources of systemic instability and wealth inequality weren't even touched by the "reforms." If the financial system were actually stable, why was the Federal Reserve only able to "normalize" interest rates and its bloated balance sheet for a few months after a decade of "growth"? Why is the Fed reverting to "emergency measures" again after a few brief months of "normalizing"?

If all these "reforms" were worth more than a bucket of spit, why isn't wealth inequality reversing?

Here's the way our "money" system works: banks borrow trillions of dollars into existence and loan it to debt serfs at high rates of interest. Central banks create "money" out of thin air and distribute it to the very top of the wealth-power pyramid: banks, financiers and corporations.

The only way to change this corrupt, exploitive system that generates inequality as its only possible output is to eliminate central banks and fractional reserve banking, and ban the aggregation of "too big to fail" entities: a system of 1,000 small banks is structurally far less vulnerable than five mega-banks that are tightly bound to virtually every risk-on asset in the entire system.

if you don't change the way "money" is created and distributed, you change nothing.

Since we're incapable of changing the sources of financial instability, fragility and inequality (because it would destabilize those benefiting from the status quo), we're doomed to watch our social and political systems decay and implode.

If we're honest--an increasingly rare and hazardous condition--we'd admit that the purchasing power of wages has fallen sharply for the bottom 95% in the past 19 years, while the concentration of wealth in the hands of the top .01% has skyrocketed, leaving the bottom 80% with few if any meaningful assets and only the top 5% reaping the gains in our "winner take most" economy.

This systemic decay in social mobility, positive social roles and financial security has eroded the social fabric as the implicit social contract between the powerful and the disenfranchized has unraveled: all the phony "reforms" of the past 19 years simply locked in insiders' "legal" pillaging.

The failure of the political system to recognize and rectify the broad-based decline of America's economy as experienced by the bottom 80% has eroded trust in politics as a "solution." Instead, people see the same powerful corporations buying influence with both parties, and tens of thousands of lobbyists in Washington DC writing the legislation passed by both parties (recall Nancy Pelosi's brief flash of honesty: "We have to pass the bill to know what's in it."). Anyone who believes this manifests the ideals of democracy is delusional.

To those I offended: please pardon my frustration with all the phony "reforms" that change nothing and thus serve to tighten the grip of the self-serving power structure on the throat of the nation.

Here's the unpalatable reality: The financial rot spread to the "real" economy two decades ago, and now the economic rot is decaying the social and political orders.

If we want to make real progress, we have to properly diagnose the structural sources of the rot that is spreading quickly into every nook and cranny of the society and culture. If we're not willing to disrupt those reaping the outsized benefits from the existing structures of wealth and power, we're deluding ourselves if we believe we're solving any problems at the source.

If you're still pissed off at me, please read the first pages of my new book (the first section is free); maybe you'll be less pissed off once you see where I'm coming from: Will You Be Richer or Poorer? Profit, Power and A.I. in a Traumatized World.




My recent books:

Will You Be Richer or Poorer? Profit, Power and A.I. in a Traumatized World (15% discount in October, Kindle $5.95, print $10.95) Read the first section for free (PDF).

Pathfinding our Destiny: Preventing the Final Fall of Our Democratic Republic ($6.95 (Kindle), $12 (print), $13.08 ( audiobook): Read the first section for free (PDF).

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

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


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



(Kindle $6.95, print $12.95)

Will you be richer or poorer? What does the future hold for you--and for the world?

Supposedly we're all getting richer, but many of us feel we’re becoming poorer. Why?

This book tackles three critical questions:

What if everything we don’t measure is worth more than financial wealth? Our obsession with financial capital is blinding us to a traumatizing global decline in other forms of wealth.

Will artificial intelligence (A.I.) make us all richer? What if A.I. will only enrich the few who own the platforms and technology?

Is our economic model dooming us? We’re told we all benefit as the super-rich get even richer, but what if the status quo only benefits those in power at the expense of everyone else--and our planet?

Though we may not be politically powerful, we are far from powerless. This book will help you identify the things that truly matter, and accumulate capital that benefits you and your family--and our planet.

Read the first section for free in PDF format.

Will You Be Richer or Poorer?: Profit, Power and A.I. in a Traumatized World (15% discount in October, Kindle $5.95, print $10.95)



Recent entries:

Economic Decay Leads to Social and Political Decay October 17, 2019

Let Me Know When It's Over October 16, 2019

The Ultimate Heresy: Technology Can't Fix What's Broken October 14, 2019

America 2019: Even the Wealthy Are Poorer in Everything That Matters October 10, 2019

Will the Clintons Destroy the Democratic Party? October 9, 2019

Our Time/Labor Is Finite, But Money Is Infinite October 8, 2019

What's Holding Up the Market? October 7, 2019

Democracy Is Now a Hindrance to the Imperial State October 4, 2019

Could Pricey Urban Meccas become Crime-Ridden Ghost Towns? October 1, 2019


Septmber 2019     August 2019     July 2019     June 2019     May 2019     April 2019     March 2019     February 2019     January 2019     December 2018

Archives 2005-2018







Contributions/subscriptions are acknowledged in the order received. Your name and email remain confidential and will not be given to any other individual, company or agency. All contributors are listed below in acknowledgement of my gratitude.

 

Thank you, Edward C. ($15), for your most generous contribution to this site-- I am greatly honored by your support and readership.

 


               


      go to Kindle edition


     


     



Of Two Minds Site Links

home     musings     my books     archives     books/films     policies/disclosures     social media/search     Aphorisms     How to Contribute, Subscribe/Unsubscribe     sites/blogs of interest     original music/songs     Get a Job (book)     contributors       my definition of success       why readers donate/subscribe to Of Two Minds     mobile site (Blogspot)     mobile site (m.oftwominds.com)


HUGE GIANT BIG FAT DISCLAIMER: Nothing on this site should be construed as investment advice or guidance. It is not intended as investment advice or guidance, nor is it offered as such.... (read more)

WHY EMAIL TO THIS SITE IS READ BUT MAY NOT BE ACKNOWLEDGED: Regrettably, I am so sorely pressed for time and energy that I am unable to respond to the vast majority of emails. Please know I read all emails, but I can only devote a very limited number of hours to this blog and all correspondence....



Contributions

Contributors and subscribers enable Of Two Minds to post free content. Without your financial support, the free content would disappear for the simple reason that I cannot keep body and soul together on my meager book sales alone.

New benefit for subscribers/patrons: a monthly Q&A where I respond to your questions/topics.

Become a patron of my work via patreon.com

How to Contribute, Subscribe/Unsubscribe to Of Two Minds

SPECIAL APPEAL TO READERS OF OFTWOMINDS from longtime correspondent Cheryl A.:

I don't recall exactly how I discovered Of Two Minds in late 2005, but it is hard to express how grateful I am that I did. As a result of the insight I have gained from the information Charles has shared over these past 9 years, I have been able to navigate this turbulent period much more successfully than most of my acquaintances. I'm sure that those of you who visit OTM with any regularity have similarly benefitted in numerous ways.

The addition of the weekly musings has been an extra bonus for supporters that has provided further insight into the markets, as well as the world around us (often providing a much needed smile).

I have no doubt that those who generously contribute to this site recognize the value that it offers. I hope that those of you who visit, but have not yet contributed, will consider doing so. Your support is essential in helping to maintain such an important resource.

Thank you, Cheryl, for this vote of confidence. I can only promise that I will continue to do my best.

"This guy is THE leading visionary on reality. He routinely discusses things which no one else has talked about, yet, turn out to be quite relevant months later."
--Walt Howard, commenting about CHS on another blog.

"You shine a bright and piercing light out into an ever-darkening world."
Jeremy Beck




Or send coins, stamps or quatloos via mail--please request P.O. Box address.


Contributions in any amount are greatly appreciated.



Subscriptions to the Weekly Musings Reports

Subscribers ($5/mo) and those who have contributed $50 or more annually (or made multiple contributions totalling $50 or more) receive weekly exclusive Musings Reports via email ($50/year is about 96 cents a week).

Each weekly Musings Report offers five features:
1. Exclusive essay on a diverse range of topics
2. Summary of the blog this week
3. Best thing that happened to me this week
4. Economic commentary
5. From Left Field (a limited selection of interesting links)

At readers' request, there is also a $10/month subscription option. (Everyone at the $10/month rate has the opportunity to add another person to the Musings email list for free.)

What subscribers are saying about the Musings (Musings samples here):

"What makes you a channel worth paying for? It's actually pretty simple - you possess a clarity of thought that most of us can only dream of, and a perspective that allows you to focus on the truth with laser-like precision." Jim S.

The "unsubscribe" link is for when you find the usual drivel here insufferable.

How to Contribute, Subscribe/Unsubscribe to Of Two Minds

 
 

PayPal members can also subscribe to the weekly Musings Reports with a one-time $50 payment: please email me if you use Dwolla, as Dwolla does not provide me with your email.

Become a $5/month patron of my work via patreon.com




Extra-Special Bonus Aphorisms:

"There is no security on this earth; there is only opportunity."
(Douglas MacArthur)

"We are what we repeatedly do." (Aristotle)

"Do the thing and you shall have the power." (Ralph Waldo Emerson)

"Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius and a lot of courage to move in the opposite direction." (E.F. Schumacher, via Tom R.)

"He who will not risk cannot win." (John Paul Jones)

"When we drink coffee, ideas march in like the army." (Honore de Balzac)

"Progress is not possible without deviation." (Frank Zappa, via Richard Metzger)

"Victory favors those who take pains." (amat victoria curam)

"The man who has a garden and a library has everything." (Cicero, via Lee Bentley)

"A healthy homecooked family meal and a home garden are revolutionary acts." (CHS)

"Do you know what amazes me more than anything else? The impotence of force to organize anything." (Napoleon Bonaparte)

"The way of the Tao is reversal" Or "Reversal is the movement of Tao." (Lao Tzu)

"Chance favours the prepared mind." (Louis Pasteur)

"Success consists of going from failure to failure without loss of enthusiasm." (Winston Churchill)

"Where there is ruin, there is hope for treasures." (Rumi)

"The realm of gratitude is boundless." (CHS, 11/25/15)

"History doesn't have a reverse gear." (CHS, 12/22/15)

Smith's Law of Conservation of Risk: Every sustained action has more than one consequence. Some consequences will appear positive for a time before revealing their destructive nature. Some consequences will be intended, some will not. Some will be foreseeable, some will not. Some will be controllable, some will not. Those that are unforeseen and uncontrollable will trigger waves of other unforeseen and uncontrollable consequences. (July 8, 2014)(thanks to Lew G. for retitling the idea.)

Smith's Neofeudalism Principle #1: If the citizenry cannot replace a kleptocratic authoritarian government and/or limit the power of the financial Aristocracy at the ballot box, the nation is a democracy in name only.

The Smith Corollary to Metcalfe's Law (The Network Effect): the value of the network is created not just by the number of connected devices/users but by the value of the information and knowledge shared by users in sub-networks and in the entire network. (CHS, 4/6/16)

My Credo of Liberation: I no longer care if the power centers of our society--the distant, fortified castles of our financial feudal system--are changed by my actions, for I am liberated by the act of resistance. I am no longer complicit in perpetuating fraudulent feudalism and the pathology of concentrated power. I no longer covet signifiers of membership in the Upper Caste that serves the plutocracy. I am liberated from self-destructive consumerist-State financialization and the delusion that debt servitude and obedience to sociopathological Elites serve my self-interests. (Thank you, Klaus-Peter L., for reminding me)

"We've become a culture of excuses rather than solutions: solutions always require sustained effort and discipline." (CHS 4/9/16)

"Fraud as a way of life caters an extravagant banquet of consequences." (CHS 4/14/16)

"Creativity = problem solving = value creation." (CHS 6/4/16)

"Truth is powerful because it is the core dynamic of solving problems." (CHS 7/21/17)

"We live in a system of human emotions that masquerades as a science (economics)." (CHS 1/1/18)

"Always remember, your focus determines your reality." (George Lucas)

"Diversity is for poor people. Sameness is for the successful." (GFB)

"When power dissipates suddenly, it dissipates completely." (CHS 7/14/19)

"Disobedience is the true foundation of liberty. The obedient must be slaves." (Henry David Thoreau)

"Markets cannot price in the value of non-monetized natural assets such as diverse ecosystems." (CHS 7/14/19)

click here for more Extra-Special Bonus Aphorisms.





Error: Embedded data could not be displayed.
   

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

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

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

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

Our Commission Policy:
Though I earn a small commission on Amazon.com books and gift certificates and gold (BullionVault) purchased via links on my site, I receive no fees or compensation for any other non-advertising links or content posted on my site.



   
   
   
    home     email me (no promise of response, sorry, here's why)     mirror site