…and the capitalism for the rest of us is going just as you’d expect, and just as planned, i.e., horribly. From a Zero Hedge story masterfully headlined “Mission Accomplished: Stocks & Homeless Kids Hit All-Time Highs”:
“Something is dreadfully wrong with this picture.
In a report just released today by the National Center on Family Homelessness, a team of academics has demonstrated that the number of homeless children in the Land of the Free now stands at 2.5 million.
This is far and away an all-time high and constitutes roughly one out of every 30 children in America.
The report goes on to explain that among the major causes of this problem are the continuing impacts of the Great Recession that began in 2008.
Funny thing, someone ought to tell these homeless kids that the economy is doing great. Of course, we know this to be true because the stock market is near its all-time high.
The Dow Jones Industrial Average now stands at 17,633, just off its all-time high.
Also near its all-time highs is the bond market, and coincidentally, the US debt—which is now within spitting distance of $18 trillion.
In other words, if these kids ever do manage to pick themselves up off the streets, they’ll work their entire lives to pay off a debt that they never signed up for.
And it all comes down to a completely perverse, corrupt, debt-based paper money system.”
Really nothing much to add to this excellent breakdown of the situation and diagnosis of its root cause, except for my perennial solution—self-issued currency. I’m not saying that we don’t have use money, I’m just saying that we accept that all money is and always has been fake, and act accordingly, as described in the LRM article “The Solution: Since The Money Isn’t Real, The Debt Isn’t Either”—do this and the situation described above could be resolved literally tomorrow:
“We have been purposely misled about money creation. We have been purposely trained to think that banks lend deposits and/or the bank’s own, pre-existing money and that therefore we have a duty and–their favorite word–an “obligation” to pay it back. It is this mistaken belief that has caused the financial crisis and this belief that threatens to drag the United States, if not the entire world, into financial ruin…
We could be done with it all if we’d just listen to the BoE which is admitting to us that the money isn’t real. It is up to us to extrapolate the rest, which is this: since the money isn’t real, then the debt isn’t either. Indeed, If we all would accept the truth that the money that was “loaned” to us for houses, cars, educations, etc. was not in fact a loan at all but instead was a purposeful hoax–a trick played on us to get us to spend our lives in a perpetual state of anxiety, panic, and labor that benefits the corporation/state instead of ourselves–we could easily allow all of this “debt” to be forgiven/repudiated immediately and start over from scratch with a new and better system.”
That new and better system? Again, self-issued currency:
“It is beyond dispute that money can be–and has been–anything: gold, paper, shells, sticks, salt, binary code, cigarettes, fabric, etc., etc. So it stands to reason that money can (and arguably ought to) be the following: a check written by a buyer for any amount requested by a seller and drawn on a fictional, non-existent account. In other words, self-issued currency. And everyone would have this same check-writing power. The only problem with this scenario? No more poverty, no more control of the masses, no more larceny, no more want, no more war, no more prostitution, no more slavery, no more debt. Oh wait, those aren’t problems at all–unless you’re one of the few people benefiting from the present system of rapaciously fraudulent currency.”
No amount of superficial overhauls of the present system will suffice. We must immediately have a new system, or we will very likely ourselves past the point of no return.
The situation described in the Zero Hedge article above is what I have always called “reverse socialism” (described nicely here) i.e. a situation in which wealth is redistributed from the bottom to the top, which even billionaire former hedge fund manager Stanley Druckenmiller admits is happening and he puts it like this:
“This is the biggest redistribution of wealth from the middle class and the poor to the rich ever.”
Here’s a video of him saying it, lest you doubt:
Reverse socialism goes by many other names: trickle-down economics, free market capitalism, free trade, bailout, central banking, ZIRP, QE, etc. Those are all euphemisms for the same ugly idea—make a few people insanely rich by stealing wealth from everyone else, who remain insanely un-rich. And again, as the Zero Hedge article above points out, it’s going great!