Pathocracy Update - Tesla’s Coming Collapse

I’m going to use this post to look at some less than obvious esoteric factors at work in the economy today.  As a result, to call into question much of the beliefs commonly held by those who support this system and who are bullish about its future.  I think many people will appreciate this post’s stark reality. 

There is a lot of manipulation going on in Tesla’s stock.  Frankly, I wonder if there is some shady dealings going on.   The regulators are in the pockets of the Wall Street criminals because the politicians are crooks so we’ll never know.  But Morgan Stanley recently raised Tesla’s stock price target to insanity, then professional traders manipulated the stock into the stratosphere and then after this was accomplished Tesla announced another stock offering.   A coincidence?   What did Einstein say?  God doesn’t play dice.  In other words, randomness is a delusion of our ego’s perceptions.  I wonder if Wall Street plays dice?  

If Tesla’s stock were trading at a valuation it deserves based on fundamentals, which is somewhere around 99% lower than it is today, then they could never raise the money needed.  If they cannot raise money then what?  The markets would demand a greater risk premium.  That premium may actually may be too much for a startup company to absorb.  Remember, Tesla has already benefited from many political favors including guaranteed taxpayer loans.   Maybe a lower stock price and higher risk premiums would result in bankruptcy or a future that is grounded in reality (ie the company is a startup that still may fail) or something similar.  There certainly is a club and we aren’t in it.  This system is so rotten that what is outright insanity, if not fraud and corruption, has become accepted without question.   Almost every aspect of our lives is described by this greater truth. 

Tesla’s valuation today is closing in on the GDP of Bolivia, Bulgaria, Ethiopia, Kenya, Macau and Serbia.  It has already surpassed the GDP of dozens of countries.   Yet, Tesla’s economic output is comparatively just about zero.   Have you ever wondered why Tesla can trade at nearly one thousand times EBITDA?  This when tens of millions of Americans are enduring a debt-enslaved, nonliving wage existence paycheck to paycheck or worse.  This when poverty is at record levels on our nation.  This when the real unemployment rate is 25%.  This when we are told there is no money for any type of democratic programs.  We don’t have enough money to pay a living wage but we have enough money to plow Tesla’s stock to a level discounting one thousand years of earnings.   Let the market decide.  Hahaha!  Well it has.   The market decided that so much money should flow into Tesla that it is worth one thousand years of earnings and that millions of American citizens aren’t worth keeping alive.  Or they are worth just enough to keep barely alive.  Why?  Because private, for-profit capital can’t extract any rent or profit exploitation from them.  I’m sure if it wasn’t so heinous that the nonliving wage class would bring back the guillotine, the free market would be fine with actually allowing the untermensch to just die.  A life enslaved to a nonliving wage job can’t be much more rewarding than death anyway.  Why else do Chinese workers jump out of factory windows?  This kind of Godless dystopian madness cannot be made up.  Orwell would be blushing right now at the dystopian state horror that is far worse than he ever imagined. 

How come that money plowing into Tesla isn’t instead being distributed to serve the needs of democracy, community and society?   Or, how come that money isn’t being distributed to others who can create another few hundred or ten thousand companies like Tesla?  It’s the same reason Tesla exists in the first place.  Cronyism and corruption that is private, for-profit, rent-seeking capital.  Well, and the fact that private, for-profit, rent-seeking capital has created the most massive financial bubble in the history of the world. 

How does Tesla rate to receive guaranteed taxpayer-backed government loans when it had never turned a profit?  Where is your guaranteed loan?  Or where are the guaranteed loans from untold numbers of suppressed entrepreneurs who can’t get one?Frankly, this is how Elon Musk, the founder of Tesla, and countless others made their wealth in the first place.   Musk had a small business that merged with another company during the Internet bubble.  That company was then purchased by Paypal again during the Internet bubble.  Then eBay purchased PayPal, again during the Internet bubble.   And, as a result of that gargantuan Internet money bubble, he received magnitudes more money for his company than it was actually worth.  Actually, his company was apparently worth little or nothing because it was scrapped by Paypal.   But that didn’t stop him from becoming a billionaire through the money printing idiocy of the Internet bubble. 

So, we saw this magnification effect of companies buying companies inflated in value by magnitudes.  Once you get to the third of fourth iteration of companies buying companies the magnification effect on money was insane.  Magnitudes times magnitudes of company mergers and buyouts, the cash-out payments for those in the club became stupidly beyond any semblance of reality.   By the way, this still happen.  

So, let’s take a look at what I am talking about.  A hypothetical of what was happening during the Internet bubble.  Let’s say a company is bought for 50x what it is worth.  Frankly, maybe it has never made a profit so it may actually be worth little to nothing at all.  Buying companies that are worthless or substantially so happened time and again during the Internet bubble and many times since.   Then that company is again bought by another company for 75x what it is worth.  Then again this company is bought by another for 20x what it is worth.   If your investment was originally $10,000, you are now worth $10,000x50x75x20.   Or your $10,000 is now worth $750,000,000.   Voila!  You are now a member of the one percent and you never really did anything other than support the predatory mergers and acquisitions game.  All courtesy of the criminal Wall Street racket.  Yes, it is a club.  Not a club based on merit but on corruption and fraud.  Not every example is so extreme but this reality of “cashing out” is quite common.  I doubt most participants are even mindful of its madness.  Their ego tells them that they are brilliant and they deserve what they have “earned”.   The same ego that tells them that millions of Americans aren’t worthy of a living wage.  The rot is so ingrained and accepted that this is the American dream for the ego-driven unbridled ambition for many college “educated”.  And we actually encourage our children to embrace this system.  Remember, the German people giggled with glee under the leadership of the Nazi Party because they too closed their eyes to greater truth. 

Frankly, as an aside, eBay itself has excelled because millions of Americans have essentially created an undercurrent barter and broker economy to stay alive.  That’s really what eBay mainly represents.  In many ways, they have become renter capitalists as well.  Not by choice but through the force of the state.  Yes, some corporations have become involved in selling overproduction on eBay but it’s success is predicated on working class people bartering and brokering to stay alive.  eBay flourishes substantially because our economy is and has been collapsing for decades.   (More on this in my upcoming series of posts.)

Remember that barter and broker comment because I have made it before about what may be coming.  It’s already here for millions.  Most who serve the corporatocracy just aren’t mindfully aware of their ego’s own delusions so they don’t see it.

Today Musk took the money he made in the Internet bubble to make cars for the one percent.  In other words, to make cars for those who made him rich during the Internet bubble.   A little bit of quid pro quo or back scratching that has come to define success in Amerika.   I doubt that was his mindful intent but the reality is the best opportunity to make money in this system is to serve the class who controls the flow of money.   There is no doubt any astute person recognizes this.

I will grant Tesla that it employs quite a few people.   Most of whom cannot afford the product they make.  I thought we used to call out capitalists who made things that their workers couldn’t afford as Robber Barons.  But now they are revered as magnates.  Ha!  Steven Jobs is the poster child for this dynamic.  How much of what is made in this world is unaffordable to those who make things for the amusement of their masters?  That class-based dynamic continues to swell. 

Now, some people will view this post singling out Elon Musk.   Meh.  That is simply not my intent.  I just don’t mindlessly chant ignorance in support of how this unjust system of control operates or why Tesla’s stock is hundreds of times more expensive than the average stock in 1929.  I’m simply using an example to build a narrative of larger importance.  Personally, I think Musk exhibits many admirable qualities and respect him as a human being.  I’m simply asking people to think beyond the end of their nose.  Elon Musk is worthy as all people are.  As all life is.  I wish Musk an abundant life as I do all people.  Actually I wish we had more people like Musk.  That is, more people who actually embraced science, the method through which humanity is propelled into abundance, and who valued building things.  And building them well as Tesla does.  Then there would be millions more Elon Musks in this world.   And, rather than building cars for the one percent, wouldn’t it be nice if we had an economic system that encouraged them to build things that actually allowed more of humanity to reap benefits?  That will never happen as long as our world is controlled by pathocrats,  private banking,  private money creation and private, profit-seeking capital because they care more about their gods of money, class rank and title than they do about humanity.  We can clearly see this greater truth with the massive poverty that exists in a world of unprecedented abundance.  

In closing, it is quite plausible that Tesla’s collapse will include more than in its stock.  It could be the company itself that collapses.  I think all of the other Obama crony investments have already failed.   To be honest, I doubt that Tesla is actually long for this world either.  That’s a common theme on here as I have noted that we could see corporations fall like dominos as this system unwinds.  Tesla is  benefiting from exogenous, temporary factors as noted on here before.  If carbon energy prices implode, and that is a long term thesis on here that I remain very comfortable with, there isn’t going to a line out the door for electric cars.  Well, and if that happens, most of the illusion of wealth in this world created through central bank money printing (that created the one percent Tesla serves) is going to disappear anyway.  In other words, both the one percent and the electric auto industry are going to be exposed as a temporary mirage.   What a great irony.  The very system that birthed  Musk’s wealth and Tesla may destroy them both.  That’s simply another manifestation of the endless contradictions of corporate capitalism.