A Tale Of Two Debacles

Postscript:

The financialization of a nation’s economy is characterized by speculative excess; and abetted by the privatization of everything under the sun.  An indication that the hyper-financialization of the U.S. economy is a problem is the fact that P-E ratios are inordinately high.  (In other words: The ratio of market valuations to productivity are currently at ridiculous levels.)  Delusive thinking, unchecked corporate interests, and artificially-generated hype all drive overblown market capitalization, which is enabled to bolster stock prices; and thus the wealth of the well-positioned few.  A scourge of inflated market caps prompts hyper-leveraging (investment against dubious collateral).  Rampant over-valuation leads to speculative bubbles.  Such grave dysfunction is exacerbated by stock buy-backs and lack of regulation / oversight of corporate activity.  This is unbridled capitalism at its most virulent.

Untaxed capital gains and extremely low taxes on dividends creates a disastrously skewed incentive structure; and it is within such an incentive structure that America’s socio-economic elite operate.  Corporate greed undermines civil rights, corrupts government officials, and—yes—induces inflation.  Virtually everything wrong with the U.S. economy right now—from high housing prices to extortionate medical bills—can be attributed, in large part, to corporatism—replete with cronyism and legalized graft.  When highly-concentrated wealth / power (read: top-down control) is married with militant ethno-nationalism (read: ethno-centric policies and cultic thinking), the result is something commonly known as “fascism”—replete with authoritarian governance, the dissolution of civil rights, and a fetishization of martial glory.  Proponents deign to marry Christian Dominionism, White Supremacy, and right-wing libertarianism.  (Curtis Yarvin sees Orwell’s 1984 as a nifty idea rather than as a warning.  Our dystopia is his utopia.)  Lo and behold: Fascism exists at the nexus of theocracy, ethno-nationalism, and corporatism.

I recoil at the prospect of watching our country be plunged into a political nightmare.  It’s not merely the fact that a sociopathic, mentally-handicapped narcissist will be occupying the Oval Office; it’s that so many Americans have been snookered into thinking that he is anything other than a sociopathic, mentally-handicapped narcissist.  This new administration is going to rob us blind, enabling kleptocrats to loot the treasury while gutting crucial departments—from the NLRB to the CFPB—as they funnel public funds into the coffers of chummy oligarchs.

How does this state of affairs come to pass? As Frank Herbert put it: “All governments suffer a recurring problem: Power attracts pathological personalities. It is not that power corrupts but that it is magnetic to the corruptible.” Meanwhile, highly intelligent people—especially those who are principled—often don’t do well in power structures…what with all the measured claims, nuanced thinking, and critical reflection.  Their rectitude, empathy, temperance, and equanimity are handicaps; not assets. They see complexity where less intelligent people see—and only want—simplicity.  They don’t make grandiose promises, nor do they reduce everything to simplistic sound-bites.  Yet it is by grandiose claims and simplistic sound-bites—especially those that are confidently pronounced—that many are persuaded.

The key, then, is GRAVITAS.  Many of us are apt to heed those that exude an air of authority…even if they are completely full of shit.  Indeed, simple-minded people want to hear snazzy platitudes and catch-phrases…especially by those who radiate confidence and charm.  We are often mesmerized by a litany of buzz-terms that are loosely strung together in semi-coherent ways.

Hence many prefer bold assertions—even if delusive—over thoughtful deliberation.  When a demagogue is courting biddable followers, boldness is often seen as a sign of sapience.  (Spoil alert: Most followers are biddable.)  In such cases, tenacity interpreted as credibility.  Consequently, gormless crowds are often swayed by sheer force of personality.  The demagogue’s confidence is misconstrued as competence; and his success in gathering acolytes is taken as corroboration of this impression.  (See Donald Trump.)  And so power tends to be arrogated into smaller and smaller, ever-more-exclusive precincts—forming a good ol’ boys club of self-serving insiders, who operate on a pay-to-play basis.  All relationships are transactional.  Self-dealing is de rigueur.

We lose sight of the fact that the key to democracy is to prevent wealth/power from becoming too highly concentrated; to attenuate the worst excesses of the ruling class; and to mitigate the ability of the power elite to lord it over everyone else. In sum: It is to forestall plutocracy.

Contemplating the implications of the second Trump administration—a cadre of theocrats, plutocrats, and lunatics—is enough to induce nausea.  (We would be living in a very different world had, last July, a certain bullet had been just a few more inches to the right.  Of course, had Fred Trump not copulated with Mary Anne MacLeod in Queens back in September of 1945, we’d also be living in a different world.  Alas.)  The Oval Office is now occupied by a man with no moral scruples, with no interest but self-aggrandizement (and whatever he can siphon into his own pockets).  We are standing witness to the most corrupt administration in U.S. history.  The government is now run by a gang of fanatics, imbeciles, and criminals.  God help us all.