Capitalism Is Broken
by Miles Mathis
First published February 28, 2023
I don't often write about economics, because it is my least favorite subject. But this one was so easy I couldn't resist. But first, why is it my least favorite subject? Because it contains the least solidity and truth. It is entirely manufactured of lies and sludge. We have seen that there have been no good historians, since they have all been paid to lie. Not one ever told you what I have told you. It is the same with economics, but even worse. At least with history we start with some facts, which the historians then hide, twist, and mangle to create what they sell to you as "history". But with economics, it is a twisted mangle from the beginning, with no foundation. It doesn't start with any facts or data, it starts with perverted theories by perverted people, all of them set up by the Phoenicians to blow smoke. Not a propitious way to start a field.
I have also told you I don't trust Zerohedge, and rarely read any of their economics articles. I do follow Zerohedge, because they happen to be on the right side of some topics right now, like vaccines, for instance. Same reason I follow Infowars and Gateway Pundit. I need to know what controlled opposition is up to, so I can respond. But you will see a more specific example of why I don't trust Zerohedge now. In a reprint of Lance Roberts from RealInvestmentAdvice.com, we find the title, "Capitalism is Broken if Record Profit Margins Don't Revert", but the thesis of the article is that Capitalism in NOT broken. So you already know you are going to be underwater the whole time you are reading him.
We know without taking any advice from Roberts that American-style capitalism was broken from the
beginning, since it was created in a broken form on purpose. Meaning, Roberts is right in only the
most basic sense: what we still have is still capitalism, in the sense that rich people still own all important capital. Companies and banks have not been nationalized and aren't owned by the people. But to prove capitalism isn't broken in the sense that most people mean, he wouldn't need to just show us some charts that show profits following supply and demand, he would need to show us proof the federal and state and international governments weren't helping the capitalists control markets, to benefit their profits and crush yours. You see, we have been told we have a "free market" capitalism, and if we did the governments should stay out of it, letting rich people fail when they make bad bets, lie, cheat, or get caught stealing. But everyone knows we don't. YOU are wide open to market forces, but rich people aren't.
Beyond that, it was agreed from the beginning that capitalism could work only in the case it was heavily monitored and limited, to prevent the rich people from taking everything. An unfettered capitalism leads very quickly to the capitalists vacuuming all resources and profits into their pile, leaving the lower and middle classes with absolutely nothing. The founding fathers knew that and admitted it, and they had to because the only way they could sell capitalism to early America was with the promise it would come with heavy oversight. They knew it because their families had come over from England in the 17th century, where exactly that was happening. They told us that the government would be on our side, making sure capitalism didn't spin out of control. That is what parts of the Constitution are about. However, we now know they lied, since government was run by capitalists from the start, and they have rigged government in their favor from the beginning. At first, to keep up appearances, they installed some oversight, and even enforced it on themselves to some extent. But even that was mostly due to infighting. They were fighting over control of the government, so one faction enforced oversight on another faction, as part of their insider wars. But once those wars were over, there was no one left to enforce and no reason to enforce. So with each passing decade the US has become less regulated. After WWII deregulation went into overdrive, so much so that by the time of Reagan they could just admit it. Reagan sold deregulation to the public as a great boon to them, and by then the American public was already so eviscerated and clueless, you could have sold them harakiri as a great boon. The Clinton years were the last dying gasp of regulation, as Glass-Steagall went under, and after 2000 it is has been a quick descent into economic barbarism, as the capitalists have gone berserk.
As I say, everyone with two brain cells remaining knows that, so it is hard to believe anyone is claiming otherwise. But you wouldn't know it from reading this article from Lance Roberts. His only function is to continue to cheerlead for capitalism, so he has to misdirect you from any basic truths from his first sentence. He doesn't allow you even the tiniest step in my direction.
Roberts starts by making you think capitalism is proved and healthy if profits revert (go lower) in the near future. He admits we have been in a time of huge profits for the capitalists, but claims that is just due to free market forces. He actually quotes himself and puts it in a bullet point:
"Notably, this has nothing to do with giant corporations taking advantage of consumers. It is just the economic consequence of 'too much money chasing too few goods.'"Does Roberts give us any evidence this has nothing to do with giant corporations taking advantage of consumers? No, he just says it, pretending that his graphs show it. But they don't. His graphs actually prove they ARE taking advantage of consumers, but he ignores that.
He knows profit margins have to drop in the near future: they are too obscene to become permanent. And they can't persist for another reason: the host will soon be tapped out at those levels. If the parasitic capitalists continue sucking the middle classes at these levels, they will kill the host. There will be no future profits left to take, and they will have to go to war with themselves—something that has already started to some extent. There is no easy blood left in the middle classes, so the capitalists have targeted their own weakest cousins.
Roberts knows that, so predicting lower profits on the horizon is no prediction at all. But he wants you to think it is a bold prediction, and that when profits do drop in the next year or two, it will be proof and vindication of capitalism. He sees it as a masterly hypnotizing: his audience will witness a small drop in profits and give the capitalists brownie points for it. The problem is, this drop in profits for the capitalists will be accompanied by a bloodbath for investors, proving not his point, but mine. Who are those investors? Well, the biggest investors will be shielded. They will be told when to drop out, so the poorest and stupidest investors will take the hit, as they always do. Trillions in losses will go to the lower-upper class and upper-middle class, because those people are the only ones with anything left to steal.
So what we have isn't really capitalism. Or, not a functioning constitutional capitalism that can underpin a government. What we now have is a system of mass predation, one that is not only NOT limited by the government, but that is actually made even more virulent and predatory by the government. It is a capital/government alliance that turns the capitalists into feeding machines, chewing up everything they encounter like a pack of piranha.
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