You are currently browsing the daily archive for February 12, 2020.

I haven’t written about last week–which was about the most miserable week which American democracy has endured since 2016 (or maybe since the 1960s…or the 1930s).  Like most good-hearted people, I have been feeling quite depressed about the sordid Senatorial acquittal of our very-obviously-criminal president…and about said criminal president’s ridiculous State of the Union speech…and about the disastrous Iowa caucuses…and about the reprisals and threats against witnesses and career civil servants coming from the White House (and its lapdog GOP)…and about, sigh, about the galloping authoritarian rot which is destroying the nation.  The only way to stop the gangrene in our political body is to cut off the afflicted parts (ahem, any GOP politician other than Mitt Romney) by sweeping the bounders, liars, traitors, thieves, and enablers of the Republican Party out of office in November’s election.

Which brings us to the subject of today’s post: this troubling article which is worth reading in its entirety at The Week.  To quickly summarize, the author believes that Bernie Sanders is unelectable because greedy Wall Street bankers dislike him.  However even if he (Sanders) were somehow elected and Democrats also swept both houses of the legislature, still nothing would change.  The fact that Sanders is doing well in the primaries and yet the market has not crashed proves this point!  It is sort of a peculiar and vacuous argument, yet it makes me furious.  The author asks whether successful business lords and fiance moguls are worried about the possibility of a Sanders presidency upsetting their cozy financial plantation and he answers:

…that’s not how Big Money sees things playing out. “A whopping 80-90 percent of participants at our client conferences thought that President Trump would win re-election in November,” Goldman Sachs noted in a recent report. With the unemployment rate at a half-century low and economic confidence at a 20-year high, it seems inconceivable to many investors that voters wouldn’t return Trump to office. For this crowd, prediction markets are as important, if not more so, than polling. And they show Trump as the favorite over the Democrats, with the exception of Mike Bloomberg.

The author is from the American Enterprise Institute (a right-wing economic think tank) and therefore he doesn’t believe in democracy unless it is a rubber stamp for some elaborate rent-seeking project from his paymasters in high finance.  I was going to excoriate him more about cultural and foreign affairs issues, but he seems indifferent to such things, and mostly concentrates on economic policy. In fact, in many ways he and I have disturbingly similar points of view: we believe that the nation’s largest problem is underinvestment in research and infrastucture.  We are both technophiles. He is even an enthusiatic supporter of space exploration!

But there the similarities end. Pethokoukis believes that medical care should cost as much (and be as ineffectual) as possible.  He believes that monopolies should run rampant and unchecked.  He believes that white collar crime should go unpunished and giant multinational companies should not be regulated by the government. In short he is a pro-business enthusiast of the status quo.

So why does this silly short article make me so angry?

I have some friends in the Wall Street world, and after they have had a few drinks, they confide that a shocking number of their fellow finance titans and hedge fund folks support Donald Trump at the ballot box (and with huge donations).  These are not under-educated people who have been dazzled by the bits of Hollywood tinsel or false piety which Trump wears as a costume (albeit a costume which is even less believable than that awful fake tan ).  They fully understand the President’s incompetence, ignorance, corruption, and racism.  They also can see the damage that this fascist dolt is doing to the nation’s well being and future prospects.  Yet they simply don’t care.  Since they are getting such astronomical kickbacks…er tax cuts, the idea of the degradation or collapse of the United States doesn’t bother them:  they will simply fly off to Zurich in their helicopters and private jets. They are willing to pay to keep Donald Trump in place even though they know he is extremely detrimental to society.

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So what the author doesn’t quite say openly is that Wall Street IS Donald Trump. They have the same interests: (1) making as much money as possible through any means; and (2) ensuring that they “win” no matter what the cost to other people or the world.  The market makers don’t really care about the long term, or the medium term, or anything at all other than their bank balance in the immediate present. They don’t even care about the free market–it is “free” only in name and is really a done deal where the winners have already been chosen by collusion, insider deals, and price-fixing.

I simply have no idea about whether Sanders can win either the Democratic nomination or the presidency.  I don’t agree with everything he supports, but he is earnest, hard-working, and concerned about the serious degradation of our nation which has happened during the last few decades.  His sympathy for the working class is not a sham, like Trump’s pretend love for coal miners, factory workers and farmers (although I worry that Trump somehow intuits how to communicate with wage-slaves better than Sanders does). One would think that such things will appeal to anyone not wearing political blinders but our ongoing political crisis is making it difficult to predict or even understand how voters (or anyone) will react to things.  Also, everyone older than I am remembers communists and socialists as despised national enemies.  We will get back to Sanders in future posts.  I don’t think he is the real subject of Pethokoukis’s article.  The real premise is that the market (and market makers) are infallible.

So what truly infuriates me about this article is its smug faith in a free market which doesn’t exist.  Pethokoukis pretends the market is all-knowing (and that it has completely dismissed Sanders before he has even secured the nomination!) but what he is really writing about is a cabal among the management elite who control the system grasp for short-term profit.  Of course such people are fine with Donald Trump (just as the latter is unable to see how extorting foreign aid to win the election is problematic).  It is maddening!  The people who have subalterned free competition,  smugly assure us that everything is very fair, unless someone with different ideas has any chance of winning.  then they threaten to upend the system and destroy everything.  I guess this article strikes me as the real Wall Street response to the the impeachment debacle. Yes Trump is as guilty as possible but that is fine because it benefits us personally.  Just as the Senate’s terrible impeachment acquittal vote left American voters as prey to dark money and foreign interference, Pethokoukis attitude leaves small investors at the mercy of finance titans who can and will punish us if they aren’t guaranteed carte blanche to do exactly as they like.

 

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