Wait until summer gets underway and The New York Post gossip page resumes its coverage of hijinks in the Hamptons. The executives of Goldman Sachs, J.P. Morgan / Chase, and other dealers in fraudulent securities, plus the art world and show biz glitteratti who party together out there, might all find themselves the object of considerable grievance and resentment as the beaching season ramps up, and the limos roll around the charity lobster roasts, and the guests stray down the lawns, chardonays in hand, to plot divorce from their over-leveraged husbands.... God knows what seekers-of-vengence will be creepy-crawling the privet plantings along Gin Lane in the crepuscular gloom, searching for trophy wives to garrote.
Perhaps a bankrupt landscaping contractor from Lake Ronkonkoma, recently stiffed by a hedge fund manager over the installation of a half acre of pachysandra, will be arrested on the Wantagh Highway with blood on his sleeves and a high-C piano wire in his pocket.
Well, one can only hope, but the surveillance state and enhanced police powers, coupled with an utterly complaisant media that will swallow anything a mall-cop with a taser tells them, does not bode well for the rebellion. Besides, reg'lar folks may be too preoccupied with trying to hang on for dear life to worry about crashing the swells.
Here lies my third dissent from what I heard at the conference: since America is bankrupting itself so comprehensively at every level, the wished-for "funding" for the green rescue program will not be there in any case. Capital itself, as represented by Wall Street, is flying to pieces this year as its stock-in-trade of paper certificates loses legitimacy in the face of the overwhelming fact that the society behind that paper will be decreasingly capable of producing surplus wealth -- which is what capital is. The unwind of "positions" now underway among the big bankz is the process of previously anticipated capital accumulation vanishing down a black hole. It will be gone forever.
The first part of the paragraph should perhaps be untethered from the second. Any "green" economy that springs up in the wake of peak oil will most assuredly do it on the public teat. There may be the usual appearances of private-sector capitalization, but only gubmint largesse greases the sufficient wheels. Oil companies are content to cash their record profit checks, let refining and extraction infrastructure either dwindle away or lose EROEI, and bide their time until federal money in some form appears to motivate them to action.
So we'll pay for it, one way or the other, as we do right now. Even before the enhanced risk premiums that have led to wartime profiteering, there were always externalities subsumed by the public, in order to keep gas "cheap" as compared to the Euros with their public transportation and such.
The decoupling of global financial capital markets, while associated in some respects, seems to be an altogether different matter. That is simply a natural result of using imaginary money to bet on imaginary products; it's second- and third-order bookmaking. Nothing is actually produced but collections of guesses and percentage points. And it is only going to last so long as European and Chinese central banks continue to fund it out of rational self-interest.
But now they're pulling to cover their own side bets. The fat stock bumps here and there are erupting out of valleys; it's a buyer's market for federally bailed-out bags of crap like Bear Stearns. Hell, who wouldn't want to buy federally-secured stock at two bucks that was trading in the $70's just weeks ago? But obviously that won't hold, that's short-term speculators cashing in on a quick mark.
If the Chinese get sick of propping us up and lending us money to buy shit from them, or the major countries decide to ditch dollars for euros as reserve currency or oil trading, we are screwed royally. Or perhaps not; what such a situation would do is essentially force us into a position the British Empire found itself in nearly a century ago -- making a choice between guns and butter, having to live smarter and more modestly, realizing that everything comes from somewhere, that the only things generated out of thin air and happy thoughts are prayers and financial derivatives.
It might mean no more ginormous sorry-about-your-penis-mobiles, jacked-up guzzler toys carrying nothing to nowhere, which would be a real tragedy. And it might mean that an entire class of people who made a great deal of paper wealth by grifting each other and betting on it, would suddenly have to justify themselves. But we'll cope somehow, I'm sure.
2 comments:
As someone who actually physically works for a living and produces something people not only use. but need, I welcome much of what is about to transpire with open arms. These parasites who sit on their asses all day and shuffle paper, deciding at their whim whether or not people will be able to sleep in a warm and dry place and go to bed without being kept awake by the growling of their stomachs make me want to scream. And I do. Often.
However, violence against those at whom our vitriol is justifiably aimed is not the answer, if for no other reason that it's counter-productive and just plain stupid. I am inclined to use their own stratagies against them when it's possible. If you charge me $36 everytime I overdraw my checking account by 50 cents, don't expect me to fix your window or replace your countertop for what YOU think is fair--you squeeze my balls and when I get a chance to squeeze yours you can bet your sweet ass I will--and hard. And don't come crying to me when your wife's mink coat is sucking up water 'cause your roof leaks; I'll get to it in my own sweet time. If you've got nothing of value to barter and no skills to produce anything I can use, leave a message with the girl at the desk and I'll try to get back to you later.
People who don't have a clue about surviving in the real world will get no sympathy from me. Don't know how to get a drink of water when your pipes freeze or the city cuts off your water and the local store is out of your favorite bottled brand because trucks have no fuel to deliver it? Cry yourself a tall one and drink up, parasite. You'll get no sympathy from me.
This whole society is built on a steaming pile of bullshit, and when the bills come due, there will be nothing left but the stench.I say get a life, people, and learn how to survive, because your government is broken, the neighbor has his eye on your wife, and that local bank you've allowed to use your money all these years just locked its doors.
Didn't mean to rant. You set me off with your "imaginary money betting on imaginary products...Nothing is produced but collections of guesses and percentage points." Nice. Rolls off the tongue.
Nice rant, Woodguy. You hit it on the head -- most of these percentage-point diddlers have no respect for anyone who can actually make or do something useful. Part of it seems to be simple class elitism, part the lack of recognition of the value and need of craft.
And of course violence is no answer, except in the polemic sense. Really, as Eddie Murphy said in Trading Places, the best way to hurt rich people is to make them poor. Taking the money out of their little grifts, and just refusing to buy what they're selling, is the most effective way.
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