"Institutions will try to preserve the problem to which they are the solution."
Let us look at precisely what is 'expanding', shall we? We can call it 'the Sovereign God Market'.
This is London property prices versus the rest of the country.
When Obama congratulates himself on jobs, he's looking at the blue line.
Never worked harder and never been poorer? Yep.
Hooray! Job recovery!
I know what you are thinking. What the fuck is wrong with that 25%? They must be federal employees.
*The sound of Gordon blowing up a party balloon. Up and up and up.*
You'll want to watch that grey line and notice how it correlates with the total stagnation of middle incomes from precisely the same time.
I know. Let's get a sitcom actor to give the graduation address.
Profits waaaaay up. Hey, what's that red line?
When the Federal Reserve said inflation was dangerously low, Yellen thinks what you have to pay to feed your family is 'noise'.
Amazing recovery we've got here, huh?
So if S&P price returns are stagnant, what is inflating the share prices to daily record highs? Follow the green line. Money printed and given straight to banks for share buybacks and yield chasing.
If the record highs look alarming, they look alarming to professional 'smart money' too. Which is why they fucked off. But who did they sell their inflated shares at the top of the market to?
You. They sold them to you and your parents and grandparents for their 'retirement nest egg'. Just like every other time before.
Pitchforks at dawn
You may have seen this over the last few days. The plutocrat giving an awesome warning of what is to come.
But let’s speak frankly to each other. I’m not the smartest guy you’ve ever met, or the hardest-working. I was a mediocre student. I’m not technical at all—I can’t write a word of code. What sets me apart, I think, is a tolerance for risk and an intuition about what will happen in the future. Seeing where things are headed is the essence of entrepreneurship. And what do I see in our future now?
I see pitchforks.
At the same time that people like you and me are thriving beyond the dreams of any plutocrats in history, the rest of the country—the 99.99 percent—is lagging far behind. The divide between the haves and have-nots is getting worse really, really fast. In 1980, the top 1 percent controlled about 8 percent of U.S. national income. The bottom 50 percent shared about 18 percent. Today the top 1 percent share about 20 percent; the bottom 50 percent, just 12 percent.
But the problem isn’t that we have inequality. Some inequality is intrinsic to any high-functioning capitalist economy. The problem is that inequality is at historically high levels and getting worse every day. Our country is rapidly becoming less a capitalist society and more a feudal society. Unless our policies change dramatically, the middle class will disappear, and we will be back to late 18th-century France. Before the revolution.
And so I have a message for my fellow filthy rich, for all of us who live in our gated bubble worlds: Wake up, people. It won’t last.
If we don’t do something to fix the glaring inequities in this economy, the pitchforks are going to come for us. No society can sustain this kind of rising inequality. In fact, there is no example in human history where wealth accumulated like this and the pitchforks didn’t eventually come out. You show me a highly unequal society, and I will show you a police state. Or an uprising. There are no counterexamples. None. It’s not if, it’s when.
Many of us think we’re special because “this is America.” We think we’re immune to the same forces that started the Arab Spring—or the French and Russian revolutions, for that matter. I know you fellow .01%ers tend to dismiss this kind of argument; I’ve had many of you tell me to my face I’m completely bonkers. And yes, I know there are many of you who are convinced that because you saw a poor kid with an iPhone that one time, inequality is a fiction.
He's got a point. Now you have to ask yourself what the archonic response will be? Well, they're splitting apart. Haven't you been keeping up?
In other words, the phantom financier claims of Wall Street now pose a strategic threat to the integrity of the U.S. and its Deep State.
The Deep State needs a functioning U.S. nation-state, and a mass uprising arising from the collapse of the state cannot be suppressed with a few whiffs of grapeshot. The collapse of global pre-eminence and state financing of food stamps and other social welfare programs directly threaten the Deep State.
The collapse of financier fortunes? While that would hurt some Yalie cronies, the Deep State is not Wall Street; it attracts those who prefer power to wealth and strategy to trading. I have no doubt whatsoever that the leadership of the Deep State would have no qualms about throwing bankers and financiers under the bus once they pose a strategic threat to the U.S. dollar and other financial interests vital to the Deep State, for example, keeping 300 million Americans distracted, placated and docile.
It's certainly not lost on the Deep State that a palpable hatred of bankers, financiers and the Federal Reserve is taking root across the land. I know this is outside the mainstream, but I think it is increasingly likely that the financial system's skimmers and swindlers are being recognized as potential strategic threats to the Deep State.
What is essential to the Deep State's survival and supremacy and what is not essential? Are 10,000 obscenely wealthy financiers essential? No. Between saving the U.S. dollar and making whole the $100 trillion in nominal-value bets made by financiers in offshore shadow-banking accounts--there's no contest.
Conventional wisdom has it that Wall Street dominates the state and the Fed. To the degree that these formal surface institutions can be influenced by lobbying, campaign contributions and plum positions, this is true. But these surface institutions only ratify and implement Deep State directives.
I know this sounds "impossible" within conventional narratives, but I am increasingly confident that the financiers' phantom claims on real wealth will be thrown under the bus in the next global financial crisis. Look at it this way: there's essentially nothing left to stripmine from the bottom 80%; most have been reduced to neofeudal debt-serfdom. Since the survival of the nation-state depends on the 80% remaining either passive or productive, the Deep State has a vital strategic interest in both the U.S. dollar and in maintaining the social welfare programs that enable the bottom 80%'s survival.
"We are at the end of a five-thousand-year-plus historical process during which human society grew in scale while it abandoned the early indigenous wisdom councils and communal decision-making," he writes in The Open Source Everything Manifesto. "Power was centralised in the hands of increasingly specialised 'elites' and 'experts' who not only failed to achieve all they promised but used secrecy and the control of information to deceive the public into allowing them to retain power over community resources that they ultimately looted."
Today's capitalism, he argues, is inherently predatory and destructive:
"Over the course of the last centuries, the commons was fenced, and everything from agriculture to water was commoditised without regard to the true cost in non-renewable resources. Human beings, who had spent centuries evolving away from slavery, were re-commoditised by the Industrial Era."
Open source everything, in this context, offers us the chance to build on what we've learned through industrialisation, to learn from our mistakes, and catalyse the re-opening of the commons, in the process breaking the grip of defunct power structures and enabling the possibility of prosperity for all.
"Sharing, not secrecy, is the means by which we realise such a lofty destiny as well as create infinite wealth. The wealth of networks, the wealth of knowledge, revolutionary wealth - all can create a nonzero win-win Earth that works for one hundred percent of humanity. This is the 'utopia' that Buckminster Fuller foresaw, now within our reach."
The goal, he concludes, is to reject:
"... concentrated illicitly aggregated and largely phantom wealth in favor of community wealth defined by community knowledge, community sharing of information, and community definition of truth derived in transparency and authenticity, the latter being the ultimate arbiter of shared wealth."
Despite this unabashedly radical vision, Steele is hugely respected by senior military intelligence experts across the world. As a researcher at the US Army War College's Strategic Studies Institute, he has authored several monographs advocating the need for open source methods to transform the craft of intelligence. He has lectured to the US State Department and Department of Homeland Security as well as National Security Councils in various countries, and his new book has received accolades from senior intelligence officials across multiple countries including France and Turkey.
Yet he remains an outspoken critic of US intelligence practices and what he sees as their integral role in aggravating rather than ameliorating the world's greatest threats and challenges.
If you think networked means flogging your wares via Yelp or etsy, then you are mistaken. The main benefit -perhaps over a long enough timeline the only benefit- of digitial networks, is that it allows real time learning about network effects. But a digital network is, in Naseem Taleb's words, 'robust'. It is very secure until it isn't. An engaged local community with decentralised participation in its economy is antifragile.
Have Catherine explain it to you.
Good luck out there. Call on the right money gods.