Useful Idiots Are Necessary To Perpetuate Economic Feudalism: Banks Will Rally 100% From Here
Sentiment is a very useful tool. Especially when one understands human behavior. Beyond what are generally some very discrete patterns we experience in our perceptions of reality, none of us really knows much of anything about anything. That is what makes being a contrarian so useful. That is why positive sentiment or social mood works. It plays on arrogance and the endless faulty beliefs of social value systems. And as I’ve noted here many times, social values are never any source of truth. In fact, it is the social value system that creates useful idiots so common in a dumbed-down corporate capitalist society. Useful idiots play an important role in the perpetuation this system of class-based feudalism.
Useful idiots crow about how much earnings power Wall Street has. The mindful and consciously aware sentient being recognizes that Wall Street makes every single nickel of its profit through rent-seeking activity. That banking as an industry creates absolutely zero wealth for society. And if a bank cannot and does not create wealth, then it somehow must find ways to extract wealth for its profit. How does it do that? Through rent-seeking activity that is enforced by the state. Umm, we need a public banking system. One where profits are not the intent. But where development of our people and our democracy is the intent. One cannot serve two masters. One cannot serve both control and truth.
Yesterday a well-know banking analyst was on financial TV crowing about the earnings potential of Wall Street banks. What this person doesn’t seem to be mindful of is if these banks are successful in increasing earnings, this can only be accomplished by increasing democracy’s serfdom to their rent-extracting schemes or state-backed, legalized stealing. Ancient societies and even many religions outlawed usury for a reason. Because it is an affront to human dignity, it is evil, it is morally-bankrupt, it is economic slavery, etc.
A public banking system in our nation would never have to charge a single penny of interest or ever collect a single fee. Never. Ever. Today, more than half of all corporate profits in this nation are financial rent from both financial and nonfinancial firms. Think about that. You can’t pay wages with revenue. Wages are paid from profit. The vast majority of profits and, thus jobs, in this nation are driven by usury and state-enforced rent or legalized stealing. Imagine if all of that wealth were instead distributed to those enslaved by this same corporate debtor’s prison. That would be you. That would be me. The enabler for this would be public banking.
This analyst has quite an illustrious history. He wrote back in March of 2008 that Citigroup was the trade of a lifetime. In coming months Citigroup would fall 99% to 99 cents a share. And about the same time he wrote that the financial crisis was over. Of course, reality was that the crisis hadn’t even started. Without a bailout by American citizens this entire financial and monetary system would have completely collapsed. Forever. And something different that would have been driven by human necessity would have been born in the place of its death.
Contrarily, back in 2007 as Wall Street stocks were hitting all-time highs I wrote that I had moved all of my family’s savings out of Wall Street banks because of coming crisis. And that they were going to experience a massive unwinding as liquidity shocks hit the economy. Then when Citigroup hit 99 cents I wrote that I was no longer bearish on Wall Street banks because exogenous factors would that determined their fate. Indeed that was very true as TARP was the biggest single day fleecing of Americans in our nation’s history. A fleecing that continues to this day. Even though banks have repaid TARP, as noted on here before, they did so through rent extraction from the American people.
That investors, the financial media, financial monkeys and society have developed enough amnesia to have this same person back on TV telling us again that Citigroup is essentially again a trade of a life time should tell us something. Maybe something about sentiment. Or maybe something else.
What it tells me is that useful idiots are necessary for this dumbed-down system of corporate state violence and injustice to perpetuate itself.