Tuesday, June 02, 2009

Stewart's Excellent Rant on the Nationalization of GM

"More of a traditional capitalistic ethos on the road to democratic socialism, please....consider it?"

Could be the missing chapter in Das Kapital was where Uncle Karl is believed to have penned:

"The transition from late capitalism to the democratic socialist state will occur when the money supply and/or credit markets are grossly overextended and the profit-margins are gorged with this gross overextension, that when those markets begin their inexorable, inevitable plunge, the markets will feed upon themselves to survive. The state, a mere pawn of this speculative credit/capital, will be used bleed the remaining coffers of the working class by raiding their pension funds both private and public (SEE ENRON PENSION FUND; SOCIAL SECURITY; STATE PENSION FUNDS. Concurent with this feeding on the public's fiscal jugular, the credit markets will transfer "ownership" of assets previously held in private hands to public ones in an apparent demostration of enlightend socialistic government.

But that phase in history will have not come to pass just yet.

For while the name of "owner" is transferred to public hands, the lien will still be held by the oligarchs, both traditional and newly-minted, who will then focus all their attention of maintaining deflationary pressures for decades to come to protect their investment in debt. But in a exponetial fashion, this economic Ouroboros will run out of its own tail to consume and the beast will perish to make way for the next phases of history......

Restated: as the traditional private capitalist economy dies, its last gasp courtesy of a speculative credit bubble, it will sell itself at a grealy inflated outrageous price (as it knows this is the last sale under the old rules) to the new public economy. The public economy will eventually flourish but only after it either works off its collective indenture to the bondholders or glares at them with such contempt and rage that the overlords fearing overthrow, capitualte. Either way, it will happen."