At some point that crust does become a scab. When the stock market is shooting up, because the Fed is pouring trillions into the financial sector, under the assumption that will jump start the economy, they do seem to have lost sight of the bigger picture.
Money and finance function as the value circulation mechanism of society, like blood and arteries to the body. So what has happened every decade or so, is there is the equivalent of a massive heart attack, when the bubble of debt powering it starts to run backwards(shocker), so they give it this enormous shot of adrenaline and everything is good again and everyone goes back to partying like before, because they know heart attacks are survivable and no one wants to miss the party.
The problem now is that this heart attack occurred as the result of what amounts to a major car accident, so not only is the system dying, but it’s horribly mangled and the blood the heart is trying to pump out is pouring out the open wounds, into the pockets of the vultures picking over the body.
Look at the election coming up; It’s like something out of a zombie movie, but everyone is supposed to Vote Biden, because Trump. Sheep, meet the sheepdog.
It really is getting to be a joke, like the Soviet Union in 1988. Instead of, ”They pretend to pay us and we pretend to work,” it’s more like, “They bullshit us and we are supposed to believe it.”
Capitalism is not a market based economy. Markets need money to circulate, while capitalism sees it as the God to worship, like Mammon. So the high priests of our culture sit in enormous piles of money and we are supposed to worship their God, but money really is a contract, not a commodity. The asset is backed by a debt. So these HUGE piles of money need a society in debt to support them.
If the real economy doesn’t have enough cash to run on, it creates debt, which pulls that saved money back into circulation. Capitalism NEEDS austerity.
It’s like the heart telling the hands and feet they don’t need so much blood and should work harder for what they do get.
Politicians(read Republicans) bitch about government debt, but it is quite obvious that Wall Street could not function, without the government siphoning up trillions in otherwise surplus money. Where would it go otherwise? Derivatives? Apple stock? Ferraris? The secret sauce of Capitalism is that public debt backs private wealth.
It might explain why we have endless, strategically inept wars and no one is fired, court marshaled, or even held to account, just given a job on CNN, if their real purpose is to spend the money, that more can be borrowed.
The bullshit runs far deeper than anyone can really imagine.
