Tuesday , September 28 2021
Home / Zerohedge / America Is A Moral Cesspool, And Student Loans Prove It

America Is A Moral Cesspool, And Student Loans Prove It

Summary:
America Is A Moral Cesspool, And Student Loans Prove It Authored by Charles Hugh Smith via OfTwoMinds blog, If America somehow managed to educate millions of college students without burdening them with trillion in debt in 1993, why is it now "impossible" to do so, even as America's wealth and gross national product (GDP) ...

Topics:
Tyler Durden considers the following as important:

This could be interesting, too:

Calculated Risk writes Tuesday: Case-Shiller House Prices, Fed Chair Powell Testimony

Tyler Durden writes Senate Republicans Vote Down Pelosi’s Debt Ceiling Bill, As Expected

Tyler Durden writes Goldman Cuts China’s Q3 GDP Growth To 0% As A Result Of Growing Energy Crisis

Tyler Durden writes Misguided Petition Demanding Permanent Monthly ,000 Stimulus Checks Nears Huge Milestone

America Is A Moral Cesspool, And Student Loans Prove It

Authored by Charles Hugh Smith via OfTwoMinds blog,

If America somehow managed to educate millions of college students without burdening them with $2 trillion in debt in 1993, why is it now "impossible" to do so, even as America's wealth and gross national product (GDP) have both rocketed higher over the past 27 years?

America Is A Moral Cesspool, And Student Loans Prove It

Predators thrive on Americans' short memories. Student loans in their present scale did not exist prior to 1994. According to the Federal Reserve FRED database, the student loan balance was zero in 1993.

From zero in 1993 to $1.728 trillion in 2021: this is the predatory financialization of higher education which has enriched lenders, Wall Street and the Higher Education Cartel. As I've noted before, such parasitic rapaciousness would have been criminal a few generations ago; now it's cheered as a reliable source of profits by Wall Street and treated as business as usual by the corporate-owned media.

America Is A Moral Cesspool, And Student Loans Prove It

If America somehow managed to educate millions of college students without burdening them with $2 trillion in debt in 1993, why is it now "impossible" to do so, even as America's wealth and gross national product (GDP) have both rocketed higher over the past 27 years?

America is now a moral cesspool, and student loans prove it. Note that the $1.728 trillion isn't the entire load of debt crushing students; that's only the securitized student loans. Wily sharpsters have found all sorts of private-debt niches which they sell as "student loans" but which are actually consumer loans. Then there's the credit card debt from card issuers giving students "student-only cards." Add it all up and the total likely exceeds $2 trillion.

Monopolies, cartels, profiteers and insiders always have a raft of excuses and justifications for their exploitation of the powerless, and all those profiting from the $2 trillion have the usual excuses plus a novel set of noble-sounding academic rationalizations.

Journalist Matt Taibbi lays waste to one slice of the student loan racket in The Trillion-Dollar Lie (courtesy of correspondent Joel W.), the legal foundation of the entire parasitic swindle: "students can't escape student loans in bankruptcy court." But suppose the legal edifice were to recognize that universities are not "non-profits" but are instead a racketeering cartel?

While crying poor, universities have pursued a construction boom of trophy buildings without precedent and piled up slush funds with hundreds of millions of dollars extracted from student debt-serfs. If this doesn't make your blood boil, then you must be swimming laps in America's moral cesspool, praising the putrid stench as "the smell of money."

It doesn't have to be this way. Way back in 2012 I laid out a way to offer 4-year university degrees for 10% of the current cost (minus living expenses, which accrue whether you're a student or not) in my book The Nearly Free University. There are models which would produce better educational results at a fraction of the current bloated cost.

To all those swimming laps in America's moral cesspool, a few words of warning:

1. America has run out of powerless people who can be exploited and turned into debt-serfs.

2. The pendulum of exploitation, racketeering and greed that's been pushed to near-infinity is about to swing to the other extreme. The banquet of consequences will soon be served, and the doors to the banquet hall will be locked. The courses in karma and Divine Retribution will be especially enlightening.

*  *  *

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.

*  *  *

My recent books:

A Hacker's Teleology: Sharing the Wealth of Our Shrinking Planet (Kindle $8.95, print $20, audiobook $17.46) Read the first section for free (PDF).

Will You Be Richer or Poorer?: Profit, Power, and AI in a Traumatized World (Kindle $5, print $10, audiobook) Read the first section for free (PDF).

Pathfinding our Destiny: Preventing the Final Fall of Our Democratic Republic ($5 (Kindle), $10 (print), ( audiobook): Read the first section for free (PDF).

The Adventures of the Consulting Philosopher: The Disappearance of Drake $1.29 (Kindle), $8.95 (print); read the first chapters for free (PDF)

Money and Work Unchained $6.95 (Kindle), $15 (print) Read the first section for free (PDF).

Tyler Durden Mon, 07/26/2021 - 20:35
Tyler Durden
Tyler Durden (a pseudonym) represents the idea that a return to truly efficient markets is a possibility and a necessity. After having experienced the inner workings of capitalism at various asset managers and advisors, Tyler believes that the current model is flawed and a deleveraging at every level of modern society is needed to reinspire the fundamental entrepreneurial spirit. Visit his blog: ZeroHedge (http://www.zerohedge.com/)

Leave a Reply

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

This site uses Akismet to reduce spam. Learn how your comment data is processed.