James Kunstler Is a Very Smart Man

When the Birdies Sing Like the Fat Lady
"And so here we are at a fraught moment in the convergent crises of corona virus and the foundering economic system that it infected, with all its frightful pre-existing conditions. Of course, it isn’t capitalism, so-called, that is failing, but the perversions of capitalism, starting with the appendage of the troublesome term: ism. It isn’t a religion, or even a pseudo-religion like Zoroastrianism or communism. It’s simply the management system for surplus wealth. In a hyper-complex society, the management of wealth naturally grows hyper-complex, too, with lavish opportunities and temptations for chicanery, cheating, fraud, and swindling (the perversions of capital). It’s in the interest of the managers to cloak all that hyper-complex perversity in opaque language, to make it seem okay.

"How many ordinary Americans have a clue what all the Municipal Liquidity Facilities, Primary Dealer Credit Facilities, Primary and Secondary Market Corporate Credit Facilities, Money Market Mutual Fund Liquidity Facilities, Main Street New Loan Facilities and Expanded Loan Facilities, Commercial Paper Funding Facilities, currency swap lines, the TALFs TARPs, PPPs, SPVs represent ­— besides the movement, by keystrokes, of “money” from one netherworld to another (both conveniently located on Wall Street), usually to the loss of non-elite citizens generally and to their offspring’s offspring’s offspring?

"Real capital is grounded in the production of real things of real value, of course, and when it’s detached from all that, it’s no longer real capital. Money represents capital, and when the capital isn’t real, the money represents…nothing! And ceases to be real money. Just now, America is producing almost nothing except money, money in quantities that stupefy the imagination — trillions here, there, and everywhere. The trouble is that money is vanishing as fast as it’s being created. That’s because it’s based on promises to be paid back into existence that will never be kept, on top of prior promises to pay back money that were broken or are in the process of breaking. The net result is that money is actually disappearing faster than it can be created, even in vast quantities.

"All this sounds like metaphysical bullshit, I suppose, but we are obviously watching money disappear. Your paycheck is gone. That activity you started — a brew-pub, a gym, an ad agency — no longer produces revenue. The HR department at the giant company you work for told you: don’t bother coming into the office tomorrow, or possibly ever again. Your bills are piling up. The numbers in your bank account run to zero. That sure smells like money disappearing. Wait until the pension checks and the SNAP cards mysteriously stop landing in the mailbox."

Paging Daddy Warbucks