naked capitalism

kevinearick says:

it’s basic economics/physics, not an agenda.

the jig is up, the Titanic is sinking, and everyone
is asserting that they need yet another subsidy to
correct for the misapplication of the last subsidy.

to be fair:

The other day I said we could roll out the new
economy just as soon as we had full disclosure.
Obviously, if it were easy, it would already be done.

The programmers were told to slice, dice, and
distribute traunched securities to the four winds, with
no code to recapture the pieces, no warning flags, and
no documentation, as part of the put-a-gun-to-their-head,
global, too-big-to-fail strategy, in which all the Nation /
State players were willing participants. Then the problem was accelerated by cutting the programmers. (GS has no
boundaries)

The talk of decoupling is just that. All these best
business practices, coupled with objective based
management, were rolled out globally, and OIL
CANNOT SERVE AS AN ECONOMIC HUB in the new,
virtual economies.

The current bubble driver is primary, subsidized
demand, largely in healthcare and education, across
the industrialized world. Overconsumption is fairly
common. Once the US levered up to create a massive
center of gravity for capital, others had little
choice, but to follow suit. The acid of disclosure
is eating toward the middle.

The healthcare bill is not about increasing coverage. It
is about promising increased demand for healthcare to
keep the bubble inflated, and to roll over the short term
debt taken out to finance massive final cycle expansion
of long term capital assets.

There are going to be large employment cuts in both,
regardless. In case someone just arrived from Mars,
tax receipts have fallen through the floor, and, because
of demographics and a decoupling of generations, those
taxes will not resume. Yes, the Fed will continue to
print computer money, the legacy families will continue
to prime on the expectation of future returns, and real
cash will continue to flow out of the pension funds and into the market for paper. But, the real money required to
maintain, let alone grow, healthcare salaries simply isn’t
there.

Once we see the big employment cuts in these areas,
along with the knock-off cuts, we can get past the “denial”
stage.

Let’s test your denial-ometer. If we build and roll out an
effective education system across the internet, how many
teachers will lose their jobs?

Now bite hard for the background: we currently do not have
an education system. We have a compliance system,
which prepares students to comply in the workplace. The
teachers are the lowest scoring college graduates, and
would not have qualified for degrees 30 years ago, before
the massive expansion of the make-work education
system to replace manufacturing. The information
economy thus became the service economy, and we have
what we have: high school dropouts, with no real
education, going to college, for no real future, except
to replace $10/hr high school graduates with $10/hr
college graduates, in an insolvent economy.

The kids are not going to pay one dime of the debt.
Because they were set up to fail, they moved on to
alternative economies. These problems can be solved
productively, if we choose to look at them. One way
or the other, they will be solved.

The Nation/State is already a myth for multi-national
corporations, and their backers. On the current
trajectory, they will soon be a myth for everyone.
Basic physics tells us that every force results in
the development of an equal and opposite force.

Fighting over chairs on the Titanic.