At the end of this weekend posting, I'll speculate on signs of desperate scheming among residual "elders" of the Republican Party and their backers who, like Prussian nobles of 1933, are murmuring "what have we done?"
== Competition vs cooperation ==
My friend (and RASR) investment guru John Mauldin knows something's wrong. He knows the U.S. right has gone insane, but keeps trying to couch it in terms that "balance" the blame. This time he refers to the brilliant economic pundit Michael Lewis whose seven-part podcast called Against the Rules "begins by talking about referees, specifically the referees who toil at NBA games. Later episodes deal with the “referees” in financial markets, courts of law, civil society, and government."
Now you know I'm one of the folks most avidly pushing rediscovery of Adam Smith. Competition is great! But as Smith reiterated, competitors will cheat. They always have, across at least 4,000 years. For the last couple of centuries we've taken gradual, then major (if incomplete) steps toward solving the problem through careful regulation.
I've long said that regulation to prevent cheating sits at the core of our five great competitive arenas... DEMOCRACY, MARKETS, SCIENCE, COURTS and SPORTS... the last one proves the point. And I'm glad to see Michael Lewis working it.
Blatantly, sports would collapse without close regulation. Science mostly successfully self-regulates with fierce reciprocal accountability, though some institutions are required. Courts are meticulous, but can be poisoned with 3rd rate judges (a top GOP priority.)
Democracy and markets must have cheating-prevention protocols thoroughly legislated, as our parents knew in the Greatest Generation. And since Reagan, the top goal of the GOP has been to tear down (not update) those cheating-prevention tools. And as a result, now Democracy and Markets are in freefall collapse.
Alas, John M. then tries to get away with the last stand of RASRs -- Residually Adult-Sane Republicans -- crying out "Both sides are at fault!"
It's not true. It's not even remotely true.
"But the overarching theme on both left and right is that the “referees” are no longer fair or impartial."
Riiiight. Except at the level of a few cherry-picked anecdotes and some loopy campus lefty-flakes, there is no equivalence to hide behind. (Example: blue states institute paper ballots and auditable elections while red states buy no-audit machines from companies with Russian ties. How do you call that equivalent?)
A RASR who also loves America and civilization - and honest-competition, and hope for a decent future - has one option. Help kill the Republican Party dead. Be confidently assured that the Democratic Party, after restoring the Rooseveltean contract of the Greatest Generation, along with science and active leadership solving real problems, and restoring accountability...
...will then break apart! The half that forms a new "right-ish" party - the Adam Smith wing - will be pro-entrepreneurship! While also believing in facts, justice, equality, facts, honest elections, facts, science, competitive markets and and saving the Earth... and facts. It will be everything you want. But first you must help us slay a vampire elephant.
== The Smart-Rich: are they awakening? ==
A crucial divide is between those oligarchs who think insatiable cheating will perch them atop a neo-feudal pyramid of inherited wealth and power vs. those who can smell inevitable revolution.
“It’s not whether we should be capitalist or socialist. It’s how do we make sure that capitalism is working the way it has in the past,” said top investor Alan Schwartz at the recent Milken Conference, warning of “class warfare.” He noted that salaries and wages as a percentage of the economic pie are at a postwar low of 40%, prompting a “throw out the rich” mentality that would require some form of income redistribution to head off.
Mega investor Ray Dalio further warned that unless the American economic system is reformed so “that the pie is both divided and grown well” the country is in danger of “great conflict and some form of revolution that will hurt most everyone and will shrink the pie.”
Not to mention Anthony Scaramucci, who in the last week or so seems to be trying to create an anti-Trump wing of the Republican party.
And most recently, the Business Round Table (of all conservative groups) in August 2019 issued a powerful statement finally rejecting an old cornerstone, Milton Friedman's manifesto that executives owed duty only to their stockholders' immediate value, and nothing and nobody else. That monstrous ethos is now seen as catastrophic, even by the BRT, who say that all stakeholders -- employees, contractors and suppliers, and the environment and civilization over the long term, should get full consideration and voice.
Let’s be clear. Capitalism did not “work” well across nearly all of the last 6000 years, because elites foiled or slowed its competitive creativity with relentless cheating. It’s what powerful males will do, 99% of the time, and that history led Marx to confidently predict a violent, proletarian-revolution end game. But it turned out that there was another path: curb the cheating. Successive waves of reform across the last 200 years started with the American Founders seizing and redistributing up to a third of the land in the former colonies, ending feudalist oppression.
But other cheats flourished and it wasn’t till the Rooseveltean social contract that markets became flat-fair-open-competitive enough to really take off, growing an unprecedented middle class, while making shared investments in infrastructure, science, education, health, R&D and children… the greatest success story in history.
That is, till that contract suffered slash-burn attacks, starting in the 1980s. And every retraction of that balanced approach – every “supply side” restoration of cheating – led to slower growth and skyrocketing disparities.
Maintaining a civilization of empowered citizenship -- the "diamond-shaped social structure" about which I often speak -- is a dilemma well described by famous historians Will & Arial Durant, in The Lessons of History:
"…the unstable equilibrium generates a critical situation, which history has diversely met by legislation redistributing wealth or by revolution distributing poverty.”
Doubt it? The works of Karl Marx, lately thought consigned to history's dust-bin, are flying off the shelves now, on university campuses and in worker ghettos around the globe. And the smarter billionaires are starting to consider what kind of society will serve their enlightened self-interest. In EARTH and in EXISTENCE I forecast that some members of the world wealth aristocracy would start holding meetings about this. Perhaps we are seeing crude, preliminary signs.
Okay... we're ready for what I promised, the aroma I am sniffing of rats desperately seeking to bail... or get off a sinking ship.
== Schemers hoping to "rescue" the GOP ==
I've been (as you know) tracking signs of an underground movement by retired or retiring GOP figures, simmering and trying to scheme for the "salvation of US conservatism."
I doubt that either of the two who have stepped up, so far, are in on it. ex-Gov. Bill Weld is a former Libertarian Party presidential candidate who -- in a sign of how low we've sunk -- appears to be taking Trump on from the president's "left." Just yesterday Joe Walsh, a conservative radio show host and former Republican congressman from Illinois, telegraphed he is running against Trump from the hard right. Nor would be the stand-up Schindler-figure, Justin Amash (like Oskar Schindler, a creep who refuses to sink further into outright evil.)
Certainly Mitt Romney is scheming. That's a given, no matter what else! But the recent wave of Texas retirees from the House? Who knows?
The figure we aren't seeing, who is doubtless talking to desperate zillionaires is Paul Ryan. (Remember him? You will, soon. Oh bet on that.)
Deterring all of this, of course, is the 88% approval rating of Trump among Republican voters, daunting almost everyone from uttering a word, let alone standing up to the madness openly.
Left out of those polls? The plummet in self-identified Republicans, nationwide, threatening with extinction the zombie implement that has served Murdoch and Putin so well. (And yes, I deeply worry what will happen when Two Scoops is seen by them as more a liability than asset: don't eat anything fed to you by your commie pals, Don, lest you be more valuable to them as a martyr.) (God bless the US Secret Service!)
Also, just how brittle is that 88% Republican support? I recall Watergate, when Nixon's devoted support collapse, like sediment raining from a supersaturated solution, or like sentiment draining from tens of millions of Republican women.
Final thought: these oligarchs should ponder deeply the fate of the Junkers-caste prussian oligarchs in 1930s Germany, who thought they could control a populist beast they helped stir into hydrophobic frenzy.
Surprise, surprise! In its froth, the beast threw its riders and a gifted svengali leaped aboard, grabbing the reins. (Remember the line from CABARET: "Do you still think you can control them?")
The beast is not to be blamed as much as the beastmasters who crafted this outbreak. You who thought you could control this were not anywhere near as smart as you thought you were. And the smartaleck "fact-people" you've waged war against are not as stupid as you envision.
History would have predicted this. If you bothered to learn any.
I've long said that regulation to prevent cheating sits at the core of our five great competitive arenas... DEMOCRACY, MARKETS, SCIENCE, COURTS and SPORTS... the last one proves the point. And I'm glad to see Michael Lewis working it.
"But the overarching theme on both left and right is that the “referees” are no longer fair or impartial."
Riiiight. Except at the level of a few cherry-picked anecdotes and some loopy campus lefty-flakes, there is no equivalence to hide behind. (Example: blue states institute paper ballots and auditable elections while red states buy no-audit machines from companies with Russian ties. How do you call that equivalent?)
A RASR who also loves America and civilization - and honest-competition, and hope for a decent future - has one option. Help kill the Republican Party dead. Be confidently assured that the Democratic Party, after restoring the Rooseveltean contract of the Greatest Generation, along with science and active leadership solving real problems, and restoring accountability...
...will then break apart! The half that forms a new "right-ish" party - the Adam Smith wing - will be pro-entrepreneurship! While also believing in facts, justice, equality, facts, honest elections, facts, science, competitive markets and and saving the Earth... and facts. It will be everything you want. But first you must help us slay a vampire elephant.
== The Smart-Rich: are they awakening? ==
A crucial divide is between those oligarchs who think insatiable cheating will perch them atop a neo-feudal pyramid of inherited wealth and power vs. those who can smell inevitable revolution.
Mega investor Ray Dalio further warned that unless the American economic system is reformed so “that the pie is both divided and grown well” the country is in danger of “great conflict and some form of revolution that will hurt most everyone and will shrink the pie.”
And most recently, the Business Round Table (of all conservative groups) in August 2019 issued a powerful statement finally rejecting an old cornerstone, Milton Friedman's manifesto that executives owed duty only to their stockholders' immediate value, and nothing and nobody else. That monstrous ethos is now seen as catastrophic, even by the BRT, who say that all stakeholders -- employees, contractors and suppliers, and the environment and civilization over the long term, should get full consideration and voice.
Let’s be clear. Capitalism did not “work” well across nearly all of the last 6000 years, because elites foiled or slowed its competitive creativity with relentless cheating. It’s what powerful males will do, 99% of the time, and that history led Marx to confidently predict a violent, proletarian-revolution end game. But it turned out that there was another path: curb the cheating. Successive waves of reform across the last 200 years started with the American Founders seizing and redistributing up to a third of the land in the former colonies, ending feudalist oppression.
But other cheats flourished and it wasn’t till the Rooseveltean social contract that markets became flat-fair-open-competitive enough to really take off, growing an unprecedented middle class, while making shared investments in infrastructure, science, education, health, R&D and children… the greatest success story in history.
But other cheats flourished and it wasn’t till the Rooseveltean social contract that markets became flat-fair-open-competitive enough to really take off, growing an unprecedented middle class, while making shared investments in infrastructure, science, education, health, R&D and children… the greatest success story in history.
That is, till that contract suffered slash-burn attacks, starting in the 1980s. And every retraction of that balanced approach – every “supply side” restoration of cheating – led to slower growth and skyrocketing disparities.
Maintaining a civilization of empowered citizenship -- the "diamond-shaped social structure" about which I often speak -- is a dilemma well described by famous historians Will & Arial Durant, in The Lessons of History:
"…the unstable equilibrium generates a critical situation, which history has diversely met by legislation redistributing wealth or by revolution distributing poverty.”
Doubt it? The works of Karl Marx, lately thought consigned to history's dust-bin, are flying off the shelves now, on university campuses and in worker ghettos around the globe. And the smarter billionaires are starting to consider what kind of society will serve their enlightened self-interest. In EARTH and in EXISTENCE I forecast that some members of the world wealth aristocracy would start holding meetings about this. Perhaps we are seeing crude, preliminary signs.
Okay... we're ready for what I promised, the aroma I am sniffing of rats desperately seeking to bail... or get off a sinking ship.
== Schemers hoping to "rescue" the GOP ==
I've been (as you know) tracking signs of an underground movement by retired or retiring GOP figures, simmering and trying to scheme for the "salvation of US conservatism."
I doubt that either of the two who have stepped up, so far, are in on it. ex-Gov. Bill Weld is a former Libertarian Party presidential candidate who -- in a sign of how low we've sunk -- appears to be taking Trump on from the president's "left." Just yesterday Joe Walsh, a conservative radio show host and former Republican congressman from Illinois, telegraphed he is running against Trump from the hard right. Nor would be the stand-up Schindler-figure, Justin Amash (like Oskar Schindler, a creep who refuses to sink further into outright evil.)
Certainly Mitt Romney is scheming. That's a given, no matter what else! But the recent wave of Texas retirees from the House? Who knows?
The figure we aren't seeing, who is doubtless talking to desperate zillionaires is Paul Ryan. (Remember him? You will, soon. Oh bet on that.)
Deterring all of this, of course, is the 88% approval rating of Trump among Republican voters, daunting almost everyone from uttering a word, let alone standing up to the madness openly.
Left out of those polls? The plummet in self-identified Republicans, nationwide, threatening with extinction the zombie implement that has served Murdoch and Putin so well. (And yes, I deeply worry what will happen when Two Scoops is seen by them as more a liability than asset: don't eat anything fed to you by your commie pals, Don, lest you be more valuable to them as a martyr.) (God bless the US Secret Service!)
Also, just how brittle is that 88% Republican support? I recall Watergate, when Nixon's devoted support collapse, like sediment raining from a supersaturated solution, or like sentiment draining from tens of millions of Republican women.
Final thought: these oligarchs should ponder deeply the fate of the Junkers-caste prussian oligarchs in 1930s Germany, who thought they could control a populist beast they helped stir into hydrophobic frenzy.
Surprise, surprise! In its froth, the beast threw its riders and a gifted svengali leaped aboard, grabbing the reins. (Remember the line from CABARET: "Do you still think you can control them?")
The beast is not to be blamed as much as the beastmasters who crafted this outbreak. You who thought you could control this were not anywhere near as smart as you thought you were. And the smartaleck "fact-people" you've waged war against are not as stupid as you envision.
History would have predicted this. If you bothered to learn any.







