Fraudonomics

The following is a post on how this whole taco stand we call the American Economy is built on fraud.


http://www.smirkingchimp.com/thread/mark-ames/28354/confessions-of-a-wall-st-nihilist-forget-about-goldman-sachs-our-entire-economy-is-built-on-fraud

In real life, I've been telling people as much for years. This economy has always grown upon the hatching of a new scam and recessions occur from the time when the scam has run its course until the hatching of a new scam.

At some point, the scams stopped being enough and the PTB (starting with Reagan Adminstration) began pulling out the stops (deregulation, lower taxes for the wealthy and deficit spending) to foster growth. To his credit, Bush I had an attack of conscience and broke his infamous "Read my Lips" promise, at the expense of a second term, to slow the metastasis. Further deregulation during the Clinton Adminstration, institution of the Greenspan Put, a refusal of Bush II to go through the necessary correction (I'm thinking he was playing Civ III and got fucked over by war weariness) all paved the way for a complete contamination. On the way, the government essentially borrowed $10 trillion and gave it to the richest 0.01% Americans...and that was BEFORE the bailouts.

Ususally, Bokolis will not bring up a problem without offering a solution. But, as the piece explains, the fraud is now so ingrained that it would be impossible to eliminate it without sending the markets back to the Stone Age (early 1982) and thereby shattering the economy...seriously, the Dow would go back to like 750 'n shit and the NASDAQ would go to like 54 or whateverthefuck it was back then.

Ignoring that this taco stand is too big to fail, you can romanticize about some Trotsky-esque revolution- replete with nationalizations, appropriations and beheadings- that could fix everything...eventually, maybe, but not before the abovementioned shattering. Unless you put some scam in place (in front of the tank) that was going to save the average shlub's retirement plan- in other words, scam the scammers- there is nothing you could do. But, as Trotsky fond out the hard way, if you're going to go through the trouble of organizing enough might to take over, why give the spoils to the people when you can keep them for yourself?