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I think
America missed something. It must be the time of year, what with inhaling all
those fumes from the charcoal starter... and fueling up the Jet-skis so as to
turn a perfectly good mountain lake into something like a Cuisinart
on the guacamole setting... and the rousing evenings in the Nascar parking lots hitting palmetto bugs with your wiffle bat... and all that anxious waiting for a 10W-40
hard rain to fall on the Gulf Coast states - but President Obama made a very
interesting remark when the financial regulation package passed in the senate
the other day. He said the bill would make sure that "Main Street is
never again held responsible for Wall Street's mistakes."
Whoosh....
That was the sound of something going over America's head. Something about
the size of Rodan the Flying Reptile. And frankly I
don't think the president even meant to be coy or deceptive. It just means he
doesn't get it either. Never again....
Never again?
What the fuck?
Why
even this time? Why isn't there an army of federal attorneys out there,
their teeth bristling with subpoenas, beating the bushes in every lane and
skyscraper floor of lower Manhattan (and Fairfield County, Connecticut, not
to mention a thousand office parks around the USA) to roust out the grifters and swindlers who took Main Street to the
cleaners this time.
The audacity of cluelessness! And the hilarity of "next time."
Earth to President Obama: there isn't going to be a next time. This
time was enough to git 'er done. Wall Street - in particular the biggest
"banks" - packaged up and sold enough swindles to unwind 2500 years
of western civilization. You simply cannot imagine the amount of bad
financial paper out there right now in every vault and portfolio on the
planet. Enough, really, to sink any company even pretending to trade in
things more abstract than a mud brick or an hour of labor. What's more, the
cross-collateralized obligations between them are so vast and intricate that
all the standing timber in North America could not be fashioned into enough
pick-up sticks to represent the hideous death-dealing tangle of frauds
waiting for the wing-beat of a single black swan to come crashing down.
Go
out and get a copy of Michael Lewis's recent book The Big Short for a
close-up view on one micro-corner of the investment world. You will discover
that the people fabricating things like synthetic collateralized debt
obligations (CDOs) had no idea what the fuck they were doing - besides deliberately
creating documents that nobody would ever understand, that would never be
unraveled by teams of law clerks or secret words or magic incantations or
prayers to some dark hirsute deity, and were guaranteed to place in jeopardy
every operation of the world economy above the barter level. Sorry to invoke
the hoary old metaphor about the horse being out of the barn - but the larger
problem is what the horse left behind in a great steaming mound clear up to
the rafters. There was nothing to understand in all this crap, except that
betting against it was a good idea, and then only for those who placed the
earliest bets - because everybody else is going to get just as screwed as
those who stuffed their vaults and portfolios with Triple-A rated horseshit.
What
banks and governments have been doing for the past eighteen months is a dumbshow meant to distract the public from the fact that
the world financial system has been effectively destroyed. There isn't enough
money left in the known reaches of the universe to pay off the outstanding
claims. In fact, not even close. Everything that proceeds from this fiasco
will be in service of impoverishing most of the population and, incidentally,
probably bringing down governments and, with them, convenient social usufructs
such as due process of law and civil order. What remains - what you're
watching right now on CNN or Fox - is just a representation of the former
structures of civilized life, what Joe Bageant
refers to as "the hologram," a kind of 3-D picture you can see
around, that looks like reality, but is actually immaterial, a collective
hallucination. It's comfortable living in a hologram - until you discover
that you're in one.
In
the summertime, when there are weenies to grill and Jet-skis to commit suicide
on, the public is usually having too much fun to pay attention to anything.
Maybe this is how come summertime is also when lots of bad shit happens, or
gets ready to happen. The guns of August... blitzkrieg... 9-11... the death of Lehman Brothers....
A
few other social notes this week: Something else the public (and, of
course, the news media) missed in the General McChrystal
affair. It wasn't just that the general badmouthed his civilian superiors. It
was that he was not the other thing that an army officer should be: a
gentleman. He was a lout who reveled in everything lowest in his own culture.
He was a man so disturbed by having to spend a night in Paris at a good
restaurant with civilized people that it seems to have driven him plumb batshit. General George Patton - a man renowned for his
own profane intemperance - would have boxed Stanley McChrystal's
ears for his sheer childishness and assigned him to Graves
Registration. When the USA falls apart in a few years, let's hope General McChrystal doesn't ride over the horizon on a white horse
with an army of Af-stan vets flexing their neck
tattoos behind him.
Oh, and something else: notice that the Deepwater Horizon oil gusher
has vanished from the front pages of The New York Times and even The
Huffington Post. Nobody gives a shit anymore. Bring it on.
James Howard Kunstler
www.kunstler.com/
James Howard Kunstler’s
new novel of the post-oil future, World Made By Hand, is
available at all booksellers.
James Kunstler has worked
as a reporter and feature writer for a number of newspapers, and finally as a
staff writer for Rolling Stone Magazine. In 1975, he dropped out to write
books on a full-time basis.
His latest nonfiction book, "The Long
Emergency," describes the changes that American society faces in the 21st
century. Discerning an imminent future of protracted socioeconomic crisis, Kunstler foresees the progressive dilapidation of
subdivisions and strip malls, the depopulation of the American Southwest,
and, amid a world at war over oil, military invasions of the West Coast; when
the convulsion subsides, Americans will live in smaller places and eat
locally grown food.
You can purchase your own copy here
: The Long
Emergency .
You can get more from James Howard Kunstler -
including his artwork, information about his other novels, and his blog - at
his Web site : http://www.kunstler.com/
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