Our objection to national economy is that it is a monster set to eat your hometown and mine, to consume capital with a burp and create nothing of value from slashing your net worth in half in the coming debacle.
Local economy, we hope, slowly builds the wherewithal to survive the eventual righting of affairs. That return to equilibrium comes with marketplace interventions show themselves in their full malice, with private parties gaining at the expense of the common man, with politics causing gains in market share and not price and quality. When the marketplace and drag itself away from the bar, it will endure a painful withdrawal from the intoxicating liquor of cheap credit.
State intervention in the marketplace is the great enemy of a common prosperity. It is requisite, however, for the few to prosper through political, legal and corporate connections and gain while the rest of the American economy stagnates or slips back.
State economy is the enemy of local economy.
Corporate economy is the enemy of personal economy, agrarian economy, family economy, personal economy.
A credit economy is the enemy of a capital economy.
When IOUs run the market, substance retreats.
Financialization = deformity
A good history of the deformations of capitalism is that of David Stockman. The Great Deformation is an excellent economic history that gives sweeping birds’ eye views of the rise of crony capitalism and the financialization of the U.S. economy. Charles Hugh Smith, in his excellent website Oftwominds.com, summarizes the effects of cheap credit and the huge marketplace that trades in paper money systems and the shifting valuations among them.
Financialization is the mass commodification of debt and debt-based financial instruments collaterized by previously low-risk assets, a pyramiding of risk and speculative gains that is only possible in a massive expansion of low-cost credit and leverage. Another way to describe the same dynamics is: financialization results when leverage and information asymmetry replace innovation and productive investment as the source of wealth creation.
When the profits from financializing collateral and leveraging those bets to the hilt far exceed generating wealth by creating products and services, the economy is soon hollowed out as the perverse incentives of financialization start driving every business and political decision and strategy.
Messrs. Stockman and Smith rightly pin the blame for the unfixable problems in the American economy upon cronyism, central banking and the lack of a representational asset-based currency.
Monsters of another kind
On my way to work I pass billboards advertising haunted houses for Halloween, celebrated Saturday. The figures on the billboards are, indeed, frightening. They are demonic and monstrous, and amplify the hobgoblin nature of that day.
The tormented visages and bared teeth put me in mind of other monsters that really exist.
I am referring to children conceived by parents who have been exposed to the military environmental disaster caused by depleted uranium armor piercing ammunition such as that fired from 30mm Warthog attack jet cannon and the guns of U.S. armored vehicles such as the Abrams tank.
The children pictured were made monstrous and helpless by the Yankee genius that obliterates cities, alters genetics to create new diseases and sprays the sky with coal fly ash to dim the sun, all the while regulating human industry on the ground toward a hoped-for standstill. Yankee perfection demands the utmost of military power, regardless of the environmental disaster that follows the coming and going of the battlefield.
“If terrorists succeeded in spreading something throughout the U.S. that ended up causing hundreds of thousands of cancer cases and birth defects over a period of many years,” says one report, “they would be guilty of a crime against humanity that far surpasses the Sept. 11th attacks in scope and severity. Although not deliberate, with our military campaigns in Iraq and Afghanistan, we have done just that.”
Sources: Charles Hugh Smith, “All Hail Our New Lord and Master, the Stock Market,” Oct. 29, 2015.http://www.oftwominds.com/blogoct15/lord-master10-15.html
Doug Westerman, “Depleted Uranium – Far Worse Than 9/11; Depleted Uranium Dust – Public Health Disaster For The People Of Iraq and Afghanistan,” May 3, 2006, Global Research, http://www.globalresearch.ca/depleted-uranium-far-worse-than-9-11/2374