Sunday, August 07, 2011

The Sewers of Provincial Towns

Most of what you are being prodded to perceive as important and catastrophic has nothing to do with you.  The Dow, the US credit rating, even the made-up aggregate national unemployment statistics?  All fundamentally concerns of an ownership class to which you do not belong.  Now it is true that cataclysm does rumble across the globe from time to time; one would not have wanted to be caught up in the Eastern Front or rolled over by the Golden Horde, but much of what we perceive in historical retrospect as sudden and apocalyptic change was not so sudden and not so apocalyptic, and while the ruling powers may have rearranged themselves, the individual lifetimes of the ruled went on, within those lifetimes, much as before.  Perhaps people were a little richer or poorer than they imagined they might be; households grew to accommodate more mutual support or shrunk when smaller units could be self-sufficient; taxes and impositions were more or less onerous; the forces of law and order were better or worse; but still, mostly, the animals went to pasture, the soil was tilled, the lunchbox packed, the shop opened, etc.  What minor investment you believe yourself to have in the outcome of all this, your retirement plan, say, your little nest egg, is just a mind-control device; its purpose is to inculcate a false identity; but you never actually owned it; I mean, just watch its "value" rise and decline unmoored from any rational, predictable, comprehensible process.  It's just an arbitrary grant that can be given or taken away at any time.  It doesn't belong to you.  To look at "the economic climate" today and consider any of it a catastrophe is to self-delude in the most preposterous manner; it's to become consumed with minor and utterly meaningless gradations of mostly phony wealth.  We may all become a bit poorer.  SO WHAT?

35 comments:

Freddie said...

But Frankie Fukuyama told me history was over.

Frederick said...

Inflation goes up, less comes home in the grocery bag. The Dow dips, I watch friends and family have to put off retirement (because pensions disappeared long ago) and wait for their 401k's to recover. The U.S. credit rating is down graded and my property taxes go up because state and local government's borrowing rate went up a couple percentage points.

Ya money is fake... technically. But it sure seems real when your living off the crumbs of people who can have a world view similar to the one you express here. These thing DONT concern the ownership class, they'll get by regardless. They do, however, concern the rest of us getting trickled down upon. Remember those bribes you were talking about the other day?

Jung the Foreman said...

Yeah, like another cool, wise, prophetic anarchist said:

"Don't sweat the small stuff. . . and it's all small stuff!!!"

Money is only 'fake' to people who have it.

Have a health crisis and bad insurance and see how fake it is.

But seriously, this new prophetic phase is like chicken soup for my soul!!!

Professor Coldheart said...

Yes, yes, yes, with you, absolutely, right on, preacher ...

What minor investment you believe yourself to have in the outcome of all this, your retirement plan, say, your little nest egg, is just a mind-control device; its purpose is to inculcate a false identity; but you never actually owned it

... and here you lose me.

See, the ownership class (or the creditor class, as I like to call them) is the ownership class because they control the overwhelming majority of investments. Their wealth is this same wealth on paper that you decry as fiction.

If I were to take the editor's pen to this otherwise brilliant riff, I would say that the soporific balm is the idea that, by playing with the same tools (equity, real estate, commodities), we are somehow on the same plane as the institutional investors - the insurance firms, the major banks, the pension funds, the university endowments. That is the illusion. I'm no more on their plane than the serf is a peer to the liege lord because they both sit in a chair at the head of a table.

But it's an important distinction. I invest in the market. The Travelers Companies invest in the market. The difference between us is an unbridgeable difference in scope, not in kind.

Cüneyt said...

This applies to plenty, but may not work for some on the margins. Sure, they were already have-nots, but the comfort they were renting may get yanked out from under them. Maybe that's a minority of cases; I can't really say. Their jobs were fake, their wages were worth less than the time and effort they invested, but they seemed to benefit from them all the same.

IOZ said...

Professor, you have achieved a sublime feat in understanding your way into thoroughly not understanding what you just read. For shits, though: an "unbridgeable difference in scope" is a difference in kind.

Cüneyt said...

Oh, and Professor, another quibble, this time for you:

You and the owning class invest in the market the way both a mark and the dealer play a game of chance in a casino.

James N. said...

"Dude, I don't know why you're mad at me. People commit arson all the time! And what kind of asshole lives in a 'house,' anyway?"

Paulo Freirette said...

So if the only books on economics that I've read are Das Kapital and JR, and I want to gain a better understanding of all this, what is my reading list?

Earnestly,

PF

mistah charley, ph.d. said...

for a provincial town, putting in a sewer is a big deal these days - there's a large capital expense. some of the people used to their septic tanks may even oppose the project. generally, though, its seen as a desirable step toward civilization. the stages of development are: private well and septic tank; public water and septic tank; public water and public sewer.

http://www.poemhunter.com/best-poems/wystan-hugh-auden/the-fall-of-rome-2/

Professor Coldheart said...

You and the owning class invest in the market the way both a mark and the dealer play a game of chance in a casino.

That's a good way of putting it.

To riff further on my own thoughts: the creditor class can lose wealth in a recession just like the debtor class can. The difference is that the creditor class has access to the halls of power; Goldman Sachs makes a call to Hank Paulson and the game continues. The debtor class does not.

So the wealth held by Ma and Pa 401(k) and the wealth held by the Harvard Endowment are just as illusory. But the Harvard Endowment has something real: the ability to shake hands with central bankers, Treasury secretaries and investment firms. It is human connection that is real; paper is an illusion.

Which brings me full circle to agreeing with our host, so there's an end to it.

Karl Franz Ochstradt said...

value ain't shown on a tally sheet.

now that's derivative!

Weldon Berger said...

The view from orbit.

Happy Jack said...

Civilization consists of viewing the world as a spreadsheet?

Cüneyt said...

Professor, you're right on about access, but there's also the difference in what kinds of chit the commoners and the well-heeled or well-positions use to play. Take preferred stock vs. common stock, for example. I mean, imagine a game of roulette where the man who's been at the table the longest gets paid before anybody else, no matter how much they've invested? But all this is beside the point. Shit's fucked up.

Paul said...

It's an appealing position to those of us with a cynical streak, and really well expressed.

But I'm not so sure. Yes, it's looking like Western 20th Century security & prosperity will turn out to have been a little blip, a historical anomaly. But was it all an illusion? The short work week, the benefits, the pensions that at least a couple generations actually COULD count on, the rise in pay---weren't these real victories, real prizes wrested from the rich in real struggles?

Certain magnates seem to have thought so. Carnegie had his Pinkerton men use real bullets at any rate, that made real holes in people, who were apparently defending something more than "arbitrary grants" Carnegie could "take away at any time."

Of course I admit we're a million miles from those days; the "jobs" we argue over don't contribute to building anything valuable and the policies we bicker over don't represent a genuine political struggle. But you write as if one never happened. Or didn't matter? Look at the way the Carnegies have been acting the last few decades. Again, it obviously matters to them.

I haven't read much of your stuff. In fact until yesterday evening I had never heard of you. Maybe you're concerned about these issues on a deeper level and are merely taking aim at the monolithic energy-dissipating media-political distraction game, in which case more power to you. But if I'm reading you right, your cynicism goes too far.

Karl Franz Ochstradt said...

common scold says:

your cynicism goes too far.

McDuff said...

Uh, so a bunch of riots, probably. If we're lucky.

Peter Ward said...

I agree that much of what we're told to worry about--the DOW, inflation, debt-GDP etc--has little bearing on the lives of ordinary slobs. However, there does appear to be a speculative attack underway al la the kind that has made life significantly harder for the majority in many third world countries;* and I think it is foolish to discount that this undertaking will make an already shitty situation significantly shittier.

Money may be fake, but as long as we have to pay for things with money we are significantly at the mercy of those who control most of it.

*And has been tentatively tried here, such as Enron jacking up electricity prices in California--which lead to deaths, if I'm not mistaken. It seems food prices will be next...

Anonymous said...

Ya money is fake... technically. But it sure seems real when your living off the crumbs of people who can have a world view similar to the one you express here. These thing DONT concern the ownership class, they'll get by regardless. They do, however, concern the rest of us getting trickled down upon. Remember those bribes you were talking about the other day?

What the fuck you gonna do about it? Write your congressman? Vote Obama? Jaysus.

Anonymous said...

--I dunno, must be a king.
--Why?
-He hasn't got shit all over him.

Justin said...

God dammit Professor, around here you are supposed to dig in your heels and double down on your position into absurdity.

Blinky the very nice dog said...

@Paolo Freirette -

a book I would like to read is The Wealth of Nature: Economics as if Survival Mattered by John Michael Greer


Compound F said...

To look at "the economic climate" today and consider any of it a catastrophe is to self-delude in the most preposterous manner; it's to become consumed with minor and utterly meaningless gradations of mostly phony wealth. We may all become a bit poorer. SO WHAT?

This is the stupidest thing I've heard in awhile. Fiat currency may be phony in the sense that it is based on mutual confidence, but the underlying wealth, energy, isn't in the least bit phony, biologically speaking. It is the coin of the realm.

And while this latest collapse in the confidence in credit may be largely a by-product of incentive systems run amok, rapidly dwindling energy resources and any confidence they engender will completely alter current notions of economics into the foreseeable future.

To repeat, the creation and crashing of "bubbles" may occur in the absence of changes in energy resources, i.e., based on pure psychological factors, but the size of this credit bubble is definitely based on expectations related to a one-time energy bubble that is also bursting.

Insert your miracle concerning how the imminent decoupling between GDP and energy use will lead to a future economic recovery wherein "we are all a little bit poorer, but so what," about here.

Even if the odds between "cataclysm" and "so what?" were as good as a coin toss, which they aren't by a long shot, and even if there existed fuzzy centroids of dissatisfaction between those two outcomes, I'm not feeling breezy about it.

It's like saying you're going to end up somewhere between slightly reduced living standards and the Four Horsemen.

Because this was all known in advance, but mitigation was not as profitable in the short term for a few, and thus never undertaken, the degradation is calling forth the "face-ripping chimpanzee" dimension of my phenotype more than usual.

IOZ said...

"Future economic recovery." You sunk my time machine. WHO SAID ANYTHING ABOUT RECOVERY, BRAH? Anyway, I'm not worried. I'm invested heavily in Goldline coins.

Compound F said...

well, then you've got your barbaric relics covered, I guess, which could buy you a future nasal rinse when you really need health care. Throw in a silver-plated spoon and you might get a pinch of salt with that to make it smoother.

I'm just saying, with Germany (likely for now, but definitely soon enough) throwing in the towel, there will be significant credit events going off like Chinese New Year. We already know the plan is to write down lives before credit. At somewhere between $600 Trillion and greater than $1 Q, that's a lot of lives to write down. One can see that much coming even if your time machine is a horse.

Paul said...

Yeah, but IOZ, do you want to be heard? Do you care about being heard? Or are you just interested in being the king of dog-whistle snark?

I can't believe you just took an Alternet article to task because it wasn't likely to rile people up. Your shit is like, "Hey, you'll be a bit poorer, and IT DOESN'T MATTER." I was so riled up I almost mustered the energy to blow a really big saliva bubble. Like my third or fourth biggest ever. Almost.

demize! said...

Only white people say race is a social construct, in other words race may not exist, but racism does. Ya see where I'm going with this? What I'm trying to say is I like Fancy Feast and dont wanna switch to Tender Vittles.

demize! said...

Oh and can we agree to forthwith refer to them as Les Rentiers, dont knowhow to do the cool italics thingy, it fits better with the aesthetic around here and the coming wave of Jacobinism...

juan said...

Break Their Haughty Power

http://home.earthlink.net/~lrgoldner/

[good stuff - pay attention to those containing 'fictitous Capital' in the title]

Anonymous said...

Till the soil? Whatever for? While Mr. Fukuyama was suggesting the permanence of our utopia, Mr. Fukuoka discovered and advocated no-tilling.

juan said...

Peter Ward, what's happening now had its origins decades ago - at the very least with Reagan and Thatcher. Look into what's called 'neo-liberalism'. Basically the capital system has been failing and there have been a number of ineffective solutions which have transferred more from bottom to top while increasing rate of exploitation of living labor on a global scale.
This can be corrected.

paul h. said...

god damn it IOZ, i didn't realize how much i'd missed you until you came back. i completely disagree with your worldview, and yet ...

Anonymous said...

What's this about a rat infestation in the national yam hut? Yeah, we all know the headman's wives have been in there a few times at night to get theirs too...

Advanced Sewer Compound said...

I can't really say. Their jobs were fake, their wages were worth less than the time and effort they invested, but they seemed to benefit from them all the same.