Making Things, Providing Services, Having Employees....How
Disgusting!
09-07-14
mpg
Big
Tech Teeters, May Sack Most People since 2009
A quote...."There is one thing for sure that big American
tech companies, many of them severely revenue-challenged,
excel at: buying other companies. They’re all doing it. And
the price they pay? The higher, the better. They’re paying
for these overvalued acquisitions with their overvalued
stock, of which they can print an unlimited amount; and
they’re paying for them with money they can borrow at nearly
no cost after inflation. -- When the cost of capital is near
zero, thanks to the Fed’s machinations, it doesn’t really
matter on what this nearly free capital gets blown. So long
as it doesn’t get spent on people."
As we now all know, making things, or providing
services, is completely unnecessary for an advanced
economy. All you need is unlimited monetary easing,
real estate speculation, and financial speculation, and
there will be a "wealth effect."
In other words, the one percent who really run things will
get wealthy as debt-notes (i.e. claims on a
society's resources) are given to them, and ONLY
them, through a variety of clever financial transfer
mechanisms.
Not only does this maintain the society's status-quo,
along with its asset valuations and power relationships,
it prevents rampant inflation since the monetary largess
is directed solely to asset speculation, and the elevation
of asset prices. The exclusive purview and privilege, of
the one percent.
What happens to the other ninety-nine percent is
irrelevant, since actually making things, or providing
services isn't necessary to run a "financialized" society,
and in this sort of "financialized" environment, isn't
really "profitable" either.
Which, of course, was the actual intent of the private
central bank known as the Federal Reserve. No matter what
they might say to the contrary. An ill-concealed
intent they've demonstrated, quite successfully for the
last six years, to the rest of the financial world, and to
the utter astonishment of many of the Fed's naysayers.
After all, what is the point of struggling to establish
market share, develop new products, run a business, pay
your employees, (yech!), etc. etc. when someone with
direct access to the Fed's money spigot, and/or its
financial transfer mechanisms, could make a thousand times
more through rehypothication, leverage and financial
speculation, with much greater rapidity, and with zero
risk? (What is commonly known as "hot-money" when
practiced across borders) -- Or where they could buy out
your competitor and run you into the ground a dozen times
over with fiat script, or loans which cost them absolutely
nothing? -- Or where, in fact, they could buy you and your
business out a hundred times over?
If they were ever so silly, and financially inept, as to
actually invest in something "real" that is. - mpg
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