Thursday , July 18 2019
Home / Charles Hugh Smith / While the Nation Fragments Socially, the Financial Aristocracy Rules Unimpeded

While the Nation Fragments Socially, the Financial Aristocracy Rules Unimpeded

Summary:
America's aristocracy is not formalized, and that's the secret of its success. If there is one central irony in American history, it is this: the citizenry that broke free of the chains of British Monarchy, the citizenry that reckoned everyone was equal before the law, the citizenry that vowed never to be ruled by an aristocracy that controlled the government and finance as a means of self-enrichment, is now so distracted by social fragmentation that the citizenry is blind to their servitude to a new and formidably informal financial aristocracy. From this juncture, ironies abound: the so-called Socialist demands for Medicare for All, "free" college for all and Universal Basic Income (UBI) are encouraged (or perhaps orchestrated) by the financial aristocracy, which rakes in tens of

Topics:
Charles Hugh Smith considers the following as important:

This could be interesting, too:

Kathy Lien writes 5 Reasons Why Traders are Selling US Dollars

Tyler Durden writes Debt & The Failure Of Monetary Policy To Stimulate Growth

Tyler Durden writes Epstein Denied Bail; Financier Will Remain In Tiny Cell Until Hearing

Tyler Durden writes Pentagon Fears Turkey To Retaliate Against US Troops In Syria Over New Sanctions

America's aristocracy is not formalized, and that's the secret of its success.
If there is one central irony in American history, it is this: the citizenry that broke free of the chains of British Monarchy, the citizenry that reckoned everyone was equal before the law, the citizenry that vowed never to be ruled by an aristocracy that controlled the government and finance as a means of self-enrichment, is now so distracted by social fragmentation that the citizenry is blind to their servitude to a new and formidably informal financial aristocracy.
From this juncture, ironies abound: the so-called Socialist demands for Medicare for All, "free" college for all and Universal Basic Income (UBI) are encouraged (or perhaps orchestrated) by the financial aristocracy, which rakes in tens of billions of dollars in profits from its banking, healthcare, national defense and higher education cartels: throwing more trillions down the ratholes of Medicare and higher education will only further enrich and empower the financial elites.
As for Universal Basic Income (UBI), the financial aristocracy is cheering loudly for UBI, which would enable debt-serfs to keep servicing their debts. (Is anyone so naive to think that UBI won't have a clause which enables the deduction of debt payments from the monthly "free money"? Does anyone think the financial aristocracy is going to give $1,000 a month to debt-serfs and then let them default on their debt? Get real!)
The demands for social justice, i.e. that everyone be allowed to be treated the same before the law and enjoy the same rights as other citizens, is a core tenet of American culture. Long before the Constitution was even ratified, the calls to end slavery were becoming louder. Long before women won the the right to vote, the calls to treat women equally before the law were gaining ground.
In the long sweep of U.S. history, the rights of gays to marry and other contemporary social justice issues are of a piece with all previous drives to eliminate disparities between the way individuals are treated before the law. This is of course as it should be: this was a core value of the revolutionaries, as limited as it was in that era, and this drive is largely what makes America America.
Equally important was the cultural drive to never be ruled by a neofeudal aristocracy or let an aristocracy form in America. Yet this is precisely what has come to pass: we are ruled by an informal but oh-so neofeudal aristocracy.
As social justice controversies fragment the increasingly economically precarious populace, a financial aristocracy has arisen that rules the nation behind the screens of "meritocracy" and "equal rights." No one is more in favor of equal rights and the abolition of social privilege that the members of the financial aristocracy, who have no need for social privilege since they control the real source of power in America: proximity to credit and newly issued money.
(Look at the liberal leanings of the Silicon Valley, L.A., Boston and NYC elites. They all love whatever distracts everyone from scrutinizing their power, and love recruiting fresh talent to slave away for their private empires.)
With this wealth, the financial aristocracy buys political influence for piddling sums and scoops up most of the low-risk productive assets of the private sector.
The core structure of the financial aristocracy is the state-cartel, the cartels that are funded and enforced by the central state: higher education, healthcare, national defense, banking, mortgages, student loans, etc.
For the financial aristocracy, the federal government is their personal enrichment machine, collecting trillions in taxes and borrowing additional trillions which are funneled through the state-cartels.
The number of seats in the American aristocracy is extremely limited, and so the top 5% are willing to go to extreme lengths to get in the first class lifeboat as the Titanic takes on water. This manifests in all sorts of ways, including the elite college admissions scandal.
While social justice proponents focus on divisive distractions, the financial aristocracy is tightening its control of the nation's economy and political order.As everyday life, civil liberties and economic security all become increasingly precarious for the bottom 90%, the divisive focus on social privilege becomes a useful distraction for the financial aristocracy, which also controls the mainstream media.
America's aristocracy is chuckling with great amusement as society is torn to pieces by media-circus sideshows. America's aristocracy doesn't need any titles or overt class distinctions as the aristocracy of old had; this would only call attention to their dominance. The ideal arrangement is a society shredded by social-media-driven fabricated divisions and a profound apathy to the actual structures of power, wealth and control.
America's aristocracy is not formalized, and that's the secret of its success.The power and control are exercised behind the formal machinery of governance and finance, and this structure protects the aristocracy from scrutiny.
So by all means demand Medicare for All and UBI: the aristocracy is heavily promoting these expansions of its wealth and power. Just as the Roman elites favored distributing free bread to the disenfranchised masses and the staging of Netflix binge TV watching--oops, I mean circuses-- so too does America's aristocracy favor UBI, Medicare for All and a fragmented society in thrall to disunity.
My book Money and Work Unchained is now $6.95 for the Kindle ebook and $15 for the print edition. Read the first section for free in PDF format.

If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com.


Thank you, Don S. ($150), for your beyond-outrageously generous contribution to this site -- I am greatly honored by your steadfast support and readership.
 
Thank you, Bonnie P. ($100), for your outrageously generous contribution to this site -- I am greatly honored by your steadfast support and readership.
Charles Hugh Smith
At readers' request, I've prepared a biography. I am not confident this is the right length or has the desired information; the whole project veers uncomfortably close to PR. On the other hand, who wants to read a boring bio? I am reminded of the "Peanuts" comic character Lucy, who once issued this terse biographical summary: "A man was born, he lived, he died." All undoubtedly true, but somewhat lacking in narrative.

Leave a Reply

Your email address will not be published. Required fields are marked *