Friday, July 30, 2021

Update On A Long-Time Thesis: US Wealth Creation Peaked More Than 40 Years Ago

Above is a Chart of US total Debt owed by corporations, citizens and government minus GDP. In other words, you can see that GDP outran debt until around 1980 when debt started rising exponentially. Then, debt clearly started outrunning GDP by about 1985 till they point today where our economy is essentially a Ponzi scheme where corporations loot our public treasure indiscriminately. The US economy is the greatest wealth transfer from the poor and working class to the wealthy, plundering investor class of corporate capitalism in world history.
What is the true sustainable GDP under corporate capitalism if debt has now grown to 3-4x GDP? It's certainly not what GDP is today. But, rather a fraction of that. 
It's quite obvious that the collapse of US society didn't begin because of Obama or Trump. It happened because of you. And me. No one is immune from the propagandized ignorance that pervades US mainstream society.
While people are now awakening, as has been one of the major themes on here for the last fifteen years, we are far from woke to use a now popular pejorative. Too many are involved in the political back and forth that is created by the ruling class and entrances a large swath of the population. This is a portent and a sign of impending crisis on so many levels.  

I have uniquely written on here for the last dozen years that US wealth peaked around 1980.(And, that the system collapsed in 2008. Easily validated with data. Some of which I have discussed.)  That's an amazing reality if true because our population has almost doubled since.  It's also not something anyone else ever in the establishment understands. I like being the only person with a particular quantitative and qualitative perspective because society, especially the modern corporate societies, are deeply steeped in mass propaganda and beliefs rather than science, truth or objective reality.
I'll share some perspective from that above statement below. But, I'll hold off on a more detailed nuts and bolts data analysis of what happened until another post in 2021.  I have to post it in 2021 because of my long term projections of what I have uniquely predicted for 2022. 

First, let me start by stating that this debt graphic above is due to the massive looting of US democracy and the world (US corporate empire) by corporate capitalism. (The parasitic elite investor/property ownership class who owns the vast majority of corporations and profits by destroying wages, dehumanizing work and enslaving humanity to debt.)  They have burdened the US democracy and citizens (and the world) with unsustainable debts while looting the global and the US public treasury. This ultimately was the same dynamic that led to the downfall of Rome. Essentially a mafia society where families or Dons (The patrician class in Rome. The parallel in the US today are the investor class of parasites, corporations and corporate elites.) were highly competitive with each other. And exploited the masses and the force of the state to plunder the world.  This should be no surprise because capitalism is based on the Roman economic system.  And, the US adopted its form of rule just as the British had. Polybius infatuation of Roman society was popular with our founding fathers. You'll appreciate this more as you continue reading.

 Paul Volcker, who is a legend in much of the US, and whom I believe is a criminal, told the Congress upon his approval as Federal Reserve Chairman that the US needed to lower its standard of living. His exact quote before Congress was, "The standard of living of the average American has to decline. I don't think you can escape that."

Why should anyone be surprised that the next forty years were massive austerity for the vast majority of the country? The system from both Reagan and Volcker told us what they were going to do. And, we did nothing but conform to the ruling class elites who backed both of these useful idiot's actions.

Volcker then went on to start the greatest austerity program in the history of the United States coupled with Ronald Reagan's gutting to democratic social safety nets.  Even today, we have the general mass of useful idiots who self-identify as Republicans or Libertarians(A political movement funded by and started by corporations.) who follow the brainwashing that democratic government is bad and corporate rule aka free markets are good.
People don't understand why inflation was so high around the time Reagan took office or what he and Volcker were truly trying to accomplish. Inflation was so high because the US was more interested in playing Rome, engaging the world in corporate-inspired wars and spending massive sums of money on the corporate military and endless profit-driven wars to expand corporate domination. Inflation wasn't high because the US paid its workers too much.  But Volcker was first and foremost part of the corporate state. So, the US wasn't going to end its corporate empire to stop raging inflation. So, instead, that meant the corporate state was going to punish US citizens and communities by ushering in austerity on democracy along with destroying small businesses, entrepreneurs, unions and wages.  Reagan's policies cemented this by making massive cuts to democratic programs while ramping up unprecedented spending for profit-driven weapons corporations and unleashing a Wall Street-driven form of financial terrorism on US citizens by deregulating private capital, corporations and the banking industry.  These policies made the ruling plutocracy rich so we continue them to this day. It's certainly not because these policies are backed by science or democracy. And, a huge amount of society is now brainwashed by this madness. And, untold numbers would literally die to defend their enslavement to the corporate state.
How do I know this? Because they sign up to for military and law enforcement service that is there to enforce it. And, they keep voting for it.  Think about this-the Republican Party is now substantially comprised of working class people whose lives have been devastated by corporations sending their livelihood to global backwater shitholes with no democracy to protect labor. And, the Congressional Republican Party in NAFTA, CAFTA and Normalized Trade Relations with China(PNTR) voted by 3-5 to 1 margins over Democrats to send their constituent's livelihood to slave labor camps for corporate capitalism and leave them struggling to survive while corporations rake in record profits. Certainly the Democratic Party is a shithole too but this contradiction exposes the massive ignorance of our voluntary enslavement. And how brainwashed we are.
Additionally, at this time the government gave the Federal Reserve responsibility for employment. This is no small change. That meant the Federal Reserve should print money under Republican ideology of Friedman's monetarism and give all of the money the "free market" or Wall Street and corporations would accept. And, they would then create jobs and prosperity. Forty years of this. 50% of Americans living on less than $20,000 a year.  The US economy a disaster zone.  US social programs to provide democratic resilience are devastated.  Science dead.  People really don't understand to this level of detail what policies actually meant. But, it was the final phase of the corporate takeover of democracy that is in full view today.  

Before employment policy was given to capitalism and the mythical free markets(a term that originates from barons and lords in feudal capitalist England who wanted to produce profit-driven goods using slaves and serfdom without the king's intervention. Or, at that time, some governing force working on behalf of the poor and serfs.) the US government was responsible for employment. In the 1945 Employment Act, the Congress essentially stated that the government would use all powers available to ensure every American had good paying jobs.  What happened in support of the chart above is that corporations and banks would decide what jobs we had and how much people would be paid.  And, they misallocated capital for four decades to the tune of hundreds of trillions of dollars in today's terms.  Truly fascism and extreme repression of the human spirit at an extreme level never seen anywhere in a democracy.  

And, as I have noted, since Reagan's election, US business creation with employees has collapsed 95% on a per capita basis.  The number of banks collapsed by almost 90%. Because what happened is that corporate capitalism killed the American worker and competition from American entrepreneurs, communities, individuals and democratically-owned initiatives.  And, corporate capitalism literally started gutting democratic government programs and then transferring government spending into corporate welfare programs. 

Let me give you an example of that transfer of wealth. By the way, this transfer is massive. Government has privatized trillions of dollars of public assets and policy to corporations since Reagan.  I have a friend who is a physics professor at a major university.  He's been a professor for about 25 years. He said when he was in graduate school, 95% of all university science research requests were approved by government science agencies. Today, it's 5%. Those are, according to him, who I trust completely, directly from grant data. 

The remaining money has been transferred to corporations. This is a major reason why the US is science-illiterate and makes nothing. Basic research has no profit motive. Corporations don't invest in ground-breaking discoveries afforded by basic research. And, thus, we no longer lead in basic research. US universities and government labs used to pump out massive, and I mean massive, research and now it's nearly dead. Corporations have NEVER, and I repeat NEVER produced breakthrough inventions on any scale. They mooch off of democracy and government funded public research that's now dead. So, now science is dead.

Literally, nothing can happen in this nation without the say-so of corporate capitalism. NOTHING. Profit-driven corporations fund our government with profit-driven debt money that enslaves democratic government and citizens. Profit-driven corporations fund our military and wars.  Profit-driven corporations fund our pathetic healthcare or more appropriately sickcare system. Profit-driven corporations create our toxic food industrial complex that has made this pandemic even possible with so many obesity-related comorbidities. Profit-driven corporations lobby our government with unbridled spending to ensure they devour taxpayer dollars. I could spend the next hour continuing with this profit-driven corporate capitalism narrative.

If you think the greatest threat to humanity is some left-wing extreme view of Critical Race Theory that literally has no more membership than right-wing KKK members, you're an idiot being pulled around by your nose by psychopaths and evildoers on both sides of this narrative. 

Enough for now. More in 2021 on why this system is collapsing.  But, you will not read any of this elsewhere in this level of detail because literally no one in finance, politics or economics understands it. And, the people on Fox News, MSNBC, CNN and journalists in general are literally scientific idiots. They simply frame narratives in such a way to drive viewership and turn us into useful idiots for corporate capitalism.

You can easily from the above chart that with corporate enforced austerity on US citizens and US government, we've been forced to live on debt since Reagan's initiatives kicked in.  That's government debt, citizen debt and most recently, through a newer form of elites looting, corporations are loading up on debt since Reagan.  People must live on debt because corporations now run the government and force people into profitable debt serfdom.  In fact, consider this.  Most of the corporations that exist today could never exist before Reagan took office. So, most corporations that exist today would instead be filled by small businesses, entrepreneurs and local community initiatives. What am I talking about that those corporations wouldn't exist except for financial fraud that happened under Reagan? Junk bonds.  But, with the Reagan debt mania fueling the corporate takeover, finance came up with a new form of what is now normalized fraud. That is junk bonds renamed to fit a propagandized narrative as not investment grade. 
Let me take this moment to reiterate why I hammer about why it's incredibly important that humanity understand what is happening in this moment.  If one doesn't understand the root cause, one is likely to be manipulated into false solutions and narratives that drag society further down the rathole of corporate rule.  Every mainstream narrative is funded by corporations and rich elites.  Even grass roots movements are eventually captured by corporate capitalism and morphed into a narrative that allows the system to maintain itself.  
This has happened numerous times in history. And, the US looks a lot like Germany when the Nazis rose to power. Especially with US conservatives. Maybe more on that in another post but a few comments- 
The petit bourgeoisie (establishment conservatives who supported the existing system) in Germany were abandoned by the bourgeoisie or capitalist corporate class. They lost their businesses due to mismanagement of the economy and were stuck paying reparations that were no different than austerity (Started with Reagan and Volcker and continued to this day.) and more recently lockdowns we see in the US today. They developed a bitter hatred for the left and the entitled corporate class.  They hated the left. They even called the left as leftists as conservatives in America do today.  Hitler tapped into this hatred and disenfranchisement.  Remember, his backers were a small minority of around 30% of voters.  They were easily manipulated by someone stating they were going to make Germany great again. And, they found a common enemy in Jews to blame for their issues. Just like happens with China, immigrants and leftists in the US today.  What the petit bourgeoisie did though is turn their heads to the contradictions that Hitler was backed by the corporate class. And, who benefited the most under Trump? Who received trillions in tax cuts? Who espouses incredible hate and participated in the Keystone Cop beer hall putsch in Washington?

The US is under a severe threat of voting in even greater totalitarianism than we have witnessed since the corporate takeover of our society in the second half of the late 1800s. And, if that happens, it will come from the right as it did in Nazi Germany. It's not just the Trump supporters. The Biden supporters are wildly conservative (establishment) authoritarians too and continue the policies that eventually led to the rise of disenfranchisement Hitler tapped into. 

Amazingly, I see conservatives trying to pick their new master in the likes of DeSantis from Florida and Abbott from Texas. These are two incredibly horrible men who do not care about anything but power. And being demagogues to a brainwashed base.  The answer is to find a candidate who will restore a basic social contract to the US and then allow for individuation and individual freedoms both politically and economically. No one within the system will ever allow this. As noted countless times, the US political and economic system cannot recover until we return to a system where power lies within individuals and communities. But, with the understanding of a common good and social contract; both enlightenment principles. 

In many other ways, the US looks like the final days of Rome. The political squabbling and those who participate are part of an entitled society.  I don't care if someone makes $30,000 a year or $30,000,000 a year.  Those who participate in the left versus right false narrative have the time and luxury of doing so because someone else is growing their food, making their clothes, producing their raw materials, making their electronics, etc.  In the US, we rely on slaves to do this.  It's part of capitalism and always has been.  If one had to "do their own laundry and clean their own toilets", they wouldn't have the time nor the egomaniacal impetus to waste so much effort on such hypocritical entitlement of blaming each other for their petty grievances. This is what elites have done all throughout history as they war to control civilizations.  It is what happened in the final days of Rome as ruling elite patricians warred against each other outwardly. And, because the average Roman pleb citizen was reliant on payment from patricians, they were sucked into the mindlessness of it all.
The world is far underestimating the scope of crisis that is coming. And, it will be global because the US has made the world in its image. And, it has done so for purposes of capitalism's plunder of the world's resources and the world's labor. 
One can conclude from my analysis that most every economic change within the US from around 1980 pushed us further from sustainability and a functioning society and economy. Thus, we will see a return to trend or some level of sustainability that will involve massive destruction of forty years of private capital misallocating democracy's resources via the capitalist takeover of democratic government. Nothing in the US is resilient or sustainable. It doesn't matter if it's the massive poverty that creates incredible lack of resilience, the destruction of the middle class, corporate careerism(which I noted ages ago could very well disappear), the long supply chains to avoid paying living wages and line the pockets of investors, most forms of work(that are useless to society and exist to simply allow the owner class to pillage labor), the truly evil Wall Street financial system, the price of assets, our form of all-powerful central government or just about anything else. All discussed on here for ages.  
As consequential as that sounds, it's nothing compared to the misallocations and unsustainability of the world outside of our borders. Globalization is in some regards a zero sum game.  Countries in the world today, sans a very few, didn't develop their own economies with their own laws, resources, inventions and intrinsic internal demand. They benefited from US capital(And Europe and Japan).  This is not only sustainable, but this dynamic of deregulated capital flows capitalism needs to survive created the Great Depression.  This is substantially misunderstood by every "expert" I have come across. More on that later. 
This post is just a reminder, the crisis we are witnessing isn't because a very, very narrow of Democratic Party elites believe in Critical Race Theory or white privilege. Both are bullshit. Although brothers and sisters in this nation of all race and creed are exploited and we should appreciate that in how we treat each other. 
The hate in this nation is palpable. And, a free mind doesn't hate.  It's placed there by the ruling class that maintains itself by dividing the masses. The free mind and free will are dead.
posted by TimingLogic at 12:37 PM