Faithless & without credit

Burning-Dollar-Bill

When it comes to Huge Political Stories 1 & 2 of the last few weeks, both of which came to a pause sometime while I was still asleep & the sun wasn’t out yet, I’ve been of two minds:

The government distillation, described by the media as a “shutdown”, was largely the state showing off its jerkery in more blunt manners — annoy some people, kick some people, that type of thing. That the tip of the government spear did not so much as dull, let alone fall off for the duration (btw: still war. Thus still people dying in war.) showed the whole thing to be more like when a mafia crew disapproves of the cannoli they were served that morning & thus operates in a worse mood than usual for awhile: sucks to be you, but it was gonna suck anyway.

The prospect of the debt umbrella actually functioning as a ceiling by way of the U.S. government smacking into it & defaulting, on the other hand, well… ever read When Money Dies?

Philosophically I’ve laid my cards out with regards to monetary policy & central banking over time. To summarize, centralized banking is a rigged game helping concentrate wealth, backed by violence and vigorous lying. In the U.S., as long as Wall Street is happy that’s all that matters for the Fed, and the stretching capability of your wages week to week can rot. What? You want to save money and avoid debt to live? Hah! That’s pretty much been abolished. See, the system that keeps you in debt itself runs on debt, as the big money players pass it back and forth while charging you fees & penalty rates at the slightest slip.

There is a curious thing about that money though. As a centrally derived fiat currency, its value comes from the promise of a single source. That same source makes promises to bondholders that it will pay them on time. Thanks to the dominance of the U.S. over time in other ways on global affairs, it has a dominant place in global finance, U.S. government bonds being seen as a ridiculously safe investment & the dollar routinely used as a reserve currency, like the blanket to the world’s Linus elite.

Now, try to imagine how those people would react were that blanket to suddenly burst into flames. Those interest payments start bouncing & the rest of the world dumps dollars like they have Ebola on them. You thought you had to pinch pennies at the store before, oh boy…

Of course, this didn’t occur — yet. Last time it got this close though, you could be outright dumbstruck by how simply it could’ve been averted, and the same applies to today. Remember those bonds? A decent portion of them are actually held by the Federal Reserve itself, and in practice it amounts to the government owing money to the government. Rather than the spectacle we got to see to no discernible end whatsoever apart from distraction, the Fed could’ve held a bonfire with their bonds & been done with it.

Think about it. After all the blood expended to prop up this system*, the value of what little money we may have in our pockets nearly went *poof* over a intra-rulers complaint of a long-passed bill originally thought up by the ones doing the complaining.

Monetary monopoly: it makes No. Damn. Sense.

* – Don’t get me confused, I don’t want it to continue. Yet the way I see it there are two ways it can end: we can dismantle it, aware of what we’re doing while building the new structure, or it can all go supernova at once. I suspect the latter would suck, to put it lightly.

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About b-psycho

Left-libertarian blogger & occasional musician.
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2 Responses to Faithless & without credit

  1. d.mantis says:

    I think its interesting how the negative outcomes for both Huge Political Stories 1 & 2 are primarily focused on the peons.

    Government shutdown = the shutdown of stuff like parks, food stamps and other elements only felt by the middle and lower class.

    Threat of Dept Ceiling = The elite have the ability to preemptively diversify and establish bulwarks against it. The theater occurs because it makes good fodder to paint the other party as irresponsible debtors/scorched earth austerity hawks.

    The funny thing is they both dig austerity. Just for us ‘small folk’. Therefore, the damage is most uniquely felt in the lower and middle classes do to rising interest rates, 401k’s evaporating and credit completely drying up while at the same time massive upheavel in the job market as large corporations flee tax system short circuits and reoganization. Its the old “next verse, same as the first” (circa 2009).

  2. B Psycho says:

    It’s as if they’re trying to see how much they can starve the cattle while still getting milk from ’em.

    Obviously if most people don’t have the funds to keep spending like usual there’s going to be economic contraction. Only so many jets & expensive meals 0.1%ers can buy. Ironically for its portrayal as the “left” position in mainstream political Murrikuh, the combo of Keynes & pity-charity liberalism is operationally a conservative bailout.

    Conditions that make such less relevant over time, to point of obsolescence, makes more sense. I guess they’d rather tease a Fuck It moment & reap the whirlwind though…

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