The only dynamic that’s even faintly “capitalist” about America’s Crony-Socialism is the cost of political corruption is still a “market.”
The supposed “option” between “industrialism” and “socialism” is an useful fabrication masking the worst of all possible worlds we populate: Industrialism for the helpless and Crony-Socialism for the effective. Capitalism’s primary dynamics are reserved solely for the helpless: market value of cash, capital’s exploitive potential, free-for-all competitors and creative damage.
The powerful, on the other hand, bask in the warm glow of socialism: The Federal Reserve protects them from the market cost of cash— financiers and the super-wealthy get their cash for essentially nothing from the Fed, in essentially limitless quantities– and the Treasury, Congress and the Executive branch secure them from any losses: their gains are private, however their losses are moved to the general public. The Supreme Court makes sure the super-rich preserve this comfortable crony-socialism by guaranteeing they can buy political power through lobbying and project contributions– under the absurd excuse of complimentary speech.
Cronies get the very best political system money can buy and you– well, you get to bring an indication on the street corner, prior to you’re transported off to prison for interrupting the peace (and you’re prohibited by social media/search Big Tech, i.e. privatized totalitarianism, for great procedure).
The Federal Reserve is America’s financial Politburo: cronies get a free pass, the helpless get nothing. While the 3 billionaires who own more wealth than the bottom 165 million Americans can obtain limitless sums for next to nothing thanks to the Fed (i.e. Crony-Socialist Politburo), the 165 million Americans pay expensive interest on payday advance, utilized car loans, student loans, charge card and so on.
Capitalism (market sets price of money) for the helpless, Crony-Socialism (nearly free cash) for the effective– thanks to America’s Crony-Socialist Politburo, the Fed. Consider the “free market” plight of America’s working poor: making low salaries that are rapidly losing their buying power makes them a credit threat, i.e. prone to defaulting, so loan providers (i.e. capital’s exploitive potential) charge high rate of interest on loans to the working poor.
Because they pay such high rates of interest and earn so bit, they default on their debt at greater rates– simply what the lenders anticipated, and what the lending institutions developed by charging sky-high rates of interest: gee, you’re having difficulty paying 24% interest? Too bad you’re bad. You see the point: low earnings, poverty and inflated interest rates are equally strengthening: a main driver of defaults and poverty is paying sky-high rates of interest and all the late charges, bounced check charges, and so on that opt for 24% rate of interest.
The Crony-Socialists have a much various deal with the Fed and its crony-bankers: the super-wealthy arrange for the corporations they own shares in to borrow billions of dollars to money stock buybacks (which in a less exploitive period were illegal market adjustment). The super-wealthy Crony-Socialist’s individual wealth rises by $100 million thanks to the stock buybacks, and then the super-wealthy Crony-Socialist borrows $10 million for next to nothing versus this newly conjured “wealth” (thanks, Fed!) to money living big.
Crony-Socialist corporations pay no income tax thanks to loopholes and the Crony-Socialists who own the shares report $1 in salary and no income since they borrowed their living expenses versus their Fed-conjured wealth. Do you determine the distinction between industrialism for the powerless and crony-socialism for the super-wealthy!
.?.!? If you can’t yet recognize the difference, then ask yourself: can you obtain $1 billion from the Fed’s cronies to buy back shares of your own business, and then borrow $10 million for near-zero rates of interest against the recently conjured “wealth”? You can’t? Well, why not?
If you address “I do not have adequate security,” you missed the key point here: thanks to America’s Crony-Socialist Politburo (the Fed), the super-wealthy have no direct exposure to the market rate of money. The Fed manipulates the expense of cash to near-zero, and then funnels limitless amounts of this nearly-free money to corporations, financiers and the super-wealthy.
Security is unnecessary in Crony-Socialism; that’s just an excuse offered to the powerless. Crony-Socialists obtain $1 billion for next to absolutely nothing, buy Treasuries with the complimentary money, put the Treasuries up as collateral (however wait, didn’t they obtain the money? Never ever mind, it doesn’t matter), originate some financial instruments (CDOs, etc.), post those as security, and after that leverage up another bet on that fictitious security.
If the bets all spoil, the Crony-Socialist declares the entire fraud is now a systemic threat and so the losses are moved to the general public/ taxpayers to “save the monetary system from collapse.” Isn’t Crony-Socialism great?
Simply as the rich kid captured with smack gets a suspended sentence and probation while the powerless kid gets a tenner in the War on Drugs Gulag, the super-wealthy Crony-Socialists avoid all the repercussions of their gambles and frauds. America’s Crony-Socialist Politburo (the Fed) takes care of its cronies and the helpless bear the brunt of predatory exploitation that’s passed off as “capitalism.”
The only dynamic that’s even faintly “capitalist” about America’s Crony-Socialism is the price of political corruption is still a “market”: what’s the current price of securing your monopoly or cartel from competitors? It’s going up quick, so better get those allurements (oops, I indicate project contributions for the 2022 election) in now before the price of corrupting “democracy” goes even higher.
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