When Things Fall Apart

[Crewleader]

(March 11, 2011)

by charles hugh smith

Financialization and centrally planned speculative credit bubbles have undermined the real economy: that's why things are falling apart.

There is no pleasure in "I told you so" when things fall apart. Many of us recognized the artifice and folly of the credit-housing bubble "Bull market" as early as 2004, but few cared to listen because they were deeply complicit in the Status Quo's legerdemaine: their home was rising in value, their pension fund was being fattened, their sales were rising on the onrushing tide of abundant, cheap credit, their tax revenues were soaring, and their benefits/perquisites were notching higher with every tick up of the stock and housing markets.

Faith in a centrally planned economy operating under the flimsy guise of cartel-State "capitalism" was supreme, as were greed, self-absorption and an overweening sense of entitlement to consumerist "prosperity."

Both corrupt political parties enthusiastically embraced the bubble-culture of fraud and speculative excess, for they too benefited from the illusory glow of "permanent economic growth" and the ever-richer contributions from the fiefdoms, cartels and Financial Elites who gained the most from the credit-based frenzy.

The "prosperity," "growth" and "wealth" were all illusory, but the pain is real. Hardworking, dedicated, smart, experienced people are being laid off into an economy with few prospects. Young people are graduating from university into the same bleak atmosphere of a paper-thin facade of magical thinking and propaganda finally crumbling.

Things are falling apart because the economy has been undermined by financialization and the extreme concentrations of capital and State power. I think these charts tell the story rather well:

Here we see the Federal Reserve-engineered credit-based speculative financialization bubbles and busts reflected in the stock market. All that cheap credit sloshing around created asset bubbles which sucked in capital and borrowed funds seeking extraordinary returns. Then when the bubble inevitably popped, the players were left with the debt, which remained real, while their illusory wealth vanished.

http://www.oftwominds.com/blogmar11/things-fall-apart3-11.html

[hlthe2b]

1. that is hard to read, though the truth. But, I'm happy to see you, Crewleader!

Long time, no see! You've got lots of "old timers" that will be garnering your attention, so let me just say HANG AROUND! We miss you when you aren't around!

[Crewleader]

2. Good to see you too longtime friend.

And Thank You for the Warm Welcome...:hi: