Blog Archives

The Unraveling Quickens

The central thesis of my new book Will You Be Richer or Poorer? is the financial “wealth” we’ve supposedly gained (or at least a few of us have gained) in the past 20 years has masked the unraveling of our intangible capital: the resilience of our economy, our social capital, i.e. our ability to find common ground and solve real-world problems, our sense that the playing field, while not entirely level, is not two-tiered, and our sense of economic security–have all been shredded.

The unraveling of everything that actually matters is quickening. While every “news” outlet cheerleads the stock market (“The Dow soared today as investor optimism rose… blah blah blah”), our “leadership” and our media don’t even attempt to measure what’s unraveling, much less address the underlying causes.

The hope is that if we ignore what’s unraveling, it will magically go away. But that’s not how reality works.

The unraveling is gathering momentum because prices have been pushing higher while wages lag, feeding the rising precariousness and inequality of our economy. The connection between people losing ground and social disorder/disunity has been well established by historians such as Peter Turchin Ages of Discord and David Hackett Fischer The Great Wave: Price Revolutions and the Rhythm of History.

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Welcome to the USSR: the United States of Suppression and Repression

When propaganda is cleverly engineered, people don’t even recognize it as propaganda: welcome to the USSR, the United States of Suppression and Repression. The propaganda in the U.S. has reached such a high state that the majority of people accept it as “pravda” (truth), even as their limbic system’s BS detector is sensing there is a great disturbance in the Force.

Inflation is a good example. The official (i.e. propaganda) inflation rate is increasingly detached from the real-world declines in the purchasing power of the bottom 80%, yet the jabbering talking heads on TV repeat the “low inflation” story with such conviction that the dissonance between the “official narrative” and the real world must be “our fault”–a classic technique of brainwashing.

To give some examples: healthcare is over 18% of the nation’s GDP, yet it makes up only 8.7% of the Consumer price Index. Hundreds of thousands of families have to declare bankruptcy as a result of crushing healthcare bills, but on the CPI components chart, it’s a tiny little sliver just a bit more than recreation (5.7%).

Then there’s education, which includes the $1.4 trillion borrowed by student debt-serfs–which is only part of the tsunami of cash gushing into the coffers of the higher-education cartel. Yet education & communication (which presumably includes the Internet / mobile telephone service cartel’s soaring prices) is another tiny sliver of the CPI, just 6.6%, a bit more than fun-and-games recreation.

As for housing costs, former Soviet apparatchiks must be high-fiving the Federal agencies for their inventive confusion of reality with magical made-up “statistics.” To estimate housing costs, the federal agency in charge of ginning up a low inflation number asks homeowners to guess what their house would rent for, were it being rented–what’s known as equivalent rent.

Wait a minute–don’t we have actual sales data for houses, and actual rent data? Yes we do, but those are verboten because they reflect skyrocketing inflation in housing costs, which is not allowed. So we use some fake guessing-game numbers, and the corporate media dutifully delivers the “pravda” that inflation is 1.6% annually–basically signal noise, while in the real world (as measured by the Chapwood Index) is running between 9% and 13% annually. How the Chapwood Index is calculated)

As the dissonance between the real world experienced by the citizenry and what they’re told is “pravda” by the media reaches extremes, the media is forced to double-down on the propaganda, shouting down, marginalizing, discrediting, demonetizing and suppressing dissenters via character assassination, following the old Soviet script to a tee.

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