About today’s new class of bureaucrats who call themselves “elite”

August 5, 2024

Once upon a time, America had a capitalist economy. Bank deposits were used for loans that expanded productive ability. America produced its own goods and grew its own food. America’s currency was backed by gold and inflation was nonexistent. New technology brought into play by new investment improved the productivity of labor, and living standards rose. Profits were plowed back into improved methods and expanded production.

Governments subsidized social infrastructure and education. This lowered the cost of transportation and, thereby, the cost of production and prices, and it provided industry and manufacturing with an educated work force.

This highly successful way of running an economy was replaced by an entirely different economy, the one we have today.

In the current economy, bank loans are not made to finance new investment in new plant and equipment. They are made in order to finance the purchase of existing assets. Loans are made to purchase existing companies, load them up with debt, and sell off their assets. Loans are made to finance a buyback of a company’s own stock, thus raising the stock price and resulting in executive and board “performance” bonuses. Loans are made to finance real estate purchases and thereby drive up the values of real estate, thus raising the cost of housing.

The new economy is clearly today financialized. It lives off of interest on debt and fees, the plunder of public assets via privatization, and exploitation of third world economies via dollar-based bank loans that can only be repaid by the indebted country selling its public assets to its American creditors, usually at rock bottom prices. This in a nutshell the work of today’s global “elite”.

The Federal Reserve destroyed family farms and monopolized food production in agri-business, monopolized the financial system in the hands of the five largest banks, and destroyed the value of the US dollar.

This is not a portrait of a successful economy with a future.

The reason being that the US government is actually destroying its privileged way of financing its ever-growing debt by weaponizing the use of the dollar as reserve currency. Consequently, the use of the US dollar in international payments has fallen from about 90% to a bit less than 50%. With the formation and expansion of BRICS it will fall further.

And it’s only going to get worse. When the time comes that Western central banks are no longer willing to risk the values of their own currencies in support to the US dollar and the gold and silver prices cannot longer be suppressed by the practice of selling “naked shorts”, America will become a third world country.

No wonder violence is the last refuge of the incompetent.

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