Wall Street is only one of several financial roach motels in what has become a giant slum of a global economy. Notional “money” scuttles in for safety and nourishment, but may never get out alive. Tom Friedman of The New York Times really put one over on the soft-headed American public when he declared in a string of books that the global economy was a permanent installation in the human condition. What we’re seeing “out there” these days is the basic operating system of that economy trying to shake itself to pieces.
The reason it has to try so hard is that the various players in the global economy game have constructed an armature of falsehood to hold it in place — for instance the pipeline of central bank “liquidity” creation that pretends to be capital propping up markets. It would be most accurate to call it fake wealth. It is not liquid at all but rather gaseous, and that is why it tends to blow “bubbles” in the places to which it flows. When the bubbles pop, the gas will tend to escape quickly and dramatically, and the ground will be littered with the pathetic broken balloons of so many hopes and dreams.
All of this mighty, tragic effort to prop up a matrix of lies might have gone into a set of activities aimed at preserving the project of remaining civilized. But that would have required the dismantling of rackets such as agri-business, big-box commerce, the medical-hostage game, the Happy Motoring channel-stuffing scam, the suburban sprawl “industry,” and the higher ed loan swindle. All of these evil systems have to go and must be replaced by more straightforward and honest endeavors aimed at growing food, doing trade, healing people, traveling, building places worth living in, and learning useful things.
All of those endeavors have to become smaller, less complex, more local, and reality-based — rather than based, as now, on overgrown and sinister intermediaries creaming off layers of value, leaving nothing behind but a thin entropic gruel of waste. All of this inescapable reform is being held up by the intransigence of a banking system that can’t admit that it has entered the stage of criticality. It sustains itself on its sheer faith in perpetual levitation. It is reasonable to believe that upsetting that faith might lead to war. After all, a number of places organized as nation-states will be full of angry, distressed citizens clamoring for sustenance and easy answers — and quite a bit of their remaining real capital is stored in the form of things that blow up.
There is an awful lot that President Barack Obama has to answer for after all this time. But there is almost no public chatter (let alone true debate) about his failure to discipline the banking system. He should have commenced to restructure the biggest banks in January of 2009. He should have proposed through his congressional proxies the reinstatement of the Glass-Steagall act. Almost nobody besides Bill Black has remarked on the remarkable record of the SEC under Obama in making no criminal referrals to the Department of Justice, not to mention the stupendous dereliction of Attorney General Eric Holder.
Of course, Barack Obama is not the only eminent office holder in the land. The behavior of all the others the past decade represents such a titanic failure of nerve and action that the younger generation must think that only revolution can avail. I believe they’ll get their chance. Everything on the horizon — most particularly the idiotic chorus of financial “bulls” — points to an ever more harrowing outcome of the orchestrated pretense that governs money matters in this moment of history.
More of the moment is the anxious decision of the Ferguson, Missouri, grand jury in the matter of Michael Brown’s death. The race hustlers so prominently showcased on CNN want to put over the story that there is only one possible just decision. If it doesn’t work out the way they like, this will be a bloody holiday and perhaps the beginning of something much bigger.
The new World Made By Hand novel
!! Is now available !!
“Kunstler skewers everything from kitsch to greed, prejudice, bloodshed, and brainwashing in this wily, funny, rip-roaring, and profoundly provocative page- turner, leaving no doubt that the prescriptive yet devilishly satiric A World Made by Hand series will continue.” — Booklist