Americans Refuge In "Matrix Of Rackets" Is Failing

Tyler Durden's picture

Authored by Howard Kunstler via,

You might not know it, given all the ambient noise of the moment, but beyond the torments of news and propaganda there is still something called the nation. It’s more than just a political compact. Until not long ago it was also a culture, an agreed-upon set of values, practices, and customs that amounted to an identity: I’m an American. If you canvassed the crowd in Yankee Stadium one summer afternoon in 1947, I imagine each person would answer that way rather than saying I’m a wounded war veteran, I’m a WASP, I’m an oppressed housewife, I’m a negro, I’m Italian, I’m a Jew, I’m a union member, I’m a communist, I’m queer, I’m a rape victim….

These days, the hardships of history are shattering the nation and our response politically has been to take refuge in a matrix of rackets. Most of these rackets are economic, because it’s the essence of racketeering to extract the greatest benefit possible from the object of your racket at the least cost to the racketeer. In plain English, it’s an organized way of getting something for nothing. The identity politics of our time is another form of racketeering — extracting current maximum benefits on claims of mistreatment, often bygone, specious, or only imagined.

And so one of the truly existential questions of the moment is whether we’ll continue to be a nation, even geographically, and a lot of sentient observers aren’t too sure. Apparently we’re not too sure we even want to be. This is why the campaign slogan of Hillary Clinton, “Stronger Together,” rang so false when the Democratic Party worked so diligently in 2016 to construct separate identity fortifications and then declared culture war on the dwindling majority outside the ramparts. And you’re surprised that Donald Trump won the election?

Trump won by making promises that he’ll never be able to keep under the current circumstances. The main promise was to restore the standard of living enjoyed in bygone decades by former industrial workers and clerks. His promise was based on a misunderstanding of history: the notion that the industrial organization of daily life was a permanent part of the human condition. You could detect by the early 21st century that this was not so anymore. That was exactly why we tried to replace it with an economy of rackets. When there’s nothing left, a lot of people are going to try to get something for nothing, because there’s nothing else to do.

Hence, the financialization of the economy. In the 1950s, finance made up about five percent of the economy. It’s mission then was pretty simple and straightforward: to manage the accumulated wealth of the nation (capital) and then allocate it to those who proposed to generate greater wealth via new productive activities, mostly industrial, ad infinitum. It turned out that ad infinitum doesn’t work in a world of finite resources — but the ride had been so intoxicating that we couldn’t bring ourselves to believe it, and still can’t.

With industry expiring, or moving elsewhere (also temporarily), we inflated finance to nearly 40 percent of the economy. The new financialization was, in effect, setting a matrix of rackets in motion. What had worked as capital management before was allowed to mutate into various forms of swindling and fraud — such as the bundling of dishonestly acquired mortgages into giant bonds and then selling them to pension funds desperate for “yield,” or the orgy of merger and acquisition in health care that turned hospitals into cash registers, or the revenue streams on derivative “plays” that amounted to bets with no possibility of ever being paid off, or the three-card-monte games of interest rate arbitrage played by central banks and their “primary dealer” concubines.

Some of what I’ve listed above may be incomprehensible to the blog reader, and that is because these rackets were crafted to be opaque and recondite. The rackets continue without regulation or prosecution because there is an unstated appreciation in government, and in the corporate board rooms, that it’s all we’ve got left. What remains of the accustomed standard of living in America is supported by wishing and fakery and all that is now coming to a climax as we steam full speed ahead into Murphy’s law: if something can go wrong, it will.

When all of America comes to realize that President Trump doesn’t know what he’s doing, it will make last November’s national nervous breakdown look like a momentary case of the vapors. What can go wrong awaits in markets, banks, currencies, and the immense dark pools of counterparty obligations that amount to black holes where notions of value are sucked out of the universe. There is so much that can go wrong. And then it will. And then maybe that will prompt us back to consider  being a nation again.

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Stuck on Zero's picture

Trump needs a war to institute changes that would otherwise be unacceptable.

Itsarap's picture

If any major war breaks out at this point.It'll lead to total tyranny and a Global(NWO)Goverment.

BuddyEffed's picture

Either that or it will end back at the horse and carriage much sooner than later.

HRClinton's picture

Whether Trump knows what he's doing is a misdirection and secondary to whether he will be allowed to make the changes that he seeks.

Never ever forget that all modern Presidents since Wilson are servants of unelected powers.

A more useful question is not if Trump can run the dying system - he can't - but whether Trump can lead it toward and through the Reboot.

conraddobler's picture

We are not going to be a nation again.

Just fucking look around.

There is a near diametrical opposition of life views between those who think government is the solution to every problem aka statists and fascists who believe big business is the answer and then finally the dwindling number of people that still work for a living and fucking know better.

It's humans versus the system now.

You are either pro human or part of some scheme or scam that more or less has the express unstated goal of destorying anything real or good about humanity.

There will be no quarter given.


Got The Wrong No's picture

This video shows what is happening and what they have in store for us in the future. They expect to connect our brains directly to the cloud by 2030 and other things like sexual neutrality and genetic manipulation to increase evolution to make humans godlike.

wcole225's picture

It's good vs evil. Good prevails but only God knows what the interim brings. It's going to be epic and bloody that's for sure.

HRH Feant's picture
HRH Feant (not verified) Mar 20, 2017 10:14 PM

Cunt'sler can't shut up about his FIRE economy. Give it a fucking break, dude. Enough. Most people don't want to grow lettuce and live in the sticks.

Ryan Langemeyer's picture

There may come a time when there is no choice except to "grow lettuce and live in the sticks". Better buy those seeds just in case.


Dragon HAwk's picture

You mean buying a bunch of Bank Stocks is not going to make me Rich?

  but everybody is in Financials. ( or health care )

Mini-Me's picture

When a country decides to ditch its roots as a constitutional republic, where individual rights are supreme, to one in which democracy favors the majority over the minority, you get the shit show we have today.

Maybe we should get back to what worked.  But we won't. 

Let the collapse happen.  We'll see what happens on the other side.  In the meantime, keep stacking.

Dr.Carl's picture

Now you make more sense than this article.

economessed's picture

So by the recent math, we had to borrow $4 to get $1 of GDP growth.  This is only a matter of trying to time the collapse, not avert it. 

The only solid manufacturing industry we have left is debt manufacturing.  And the rest of the world is trying to take those jobs away from us now too.

The Federal Reserve has to be the most ridiculous entity left on the planet.  They pretend to "manage" the economy, and the ambulatory colon polyp who runs the place spouts off piles of bullshit about how smart they think they are. 

Nobody wants to confront problems anymore.  They are all too large.  This is what a post-growth economy is like in the early stages.  It does not get better -- just various degrees of worse.

AGuy's picture

"The only solid manufacturing industry we have left is debt manufacturing."

Well that's not really correct. The US also has it's "manufactured lies" business (spans both public & private sectors) to keep the economy afloat /sarc

worbsid's picture

I see a whole flock of black swans that no one will see coming.  At least Trump is trying to do something good.  Evil Hillary would thrive and make lots of money now. 

Itsarap's picture

Trump loves NSA spying and said Snowden needs executed??????(BTW Alex Jones is a CIA/MOSSAD COIN-TEL MISDIRECTION/CONTROLLED OPPOSITION AGENT).Pssh,Youtube it!!!!!

Got The Wrong No's picture

You are more than likely a Soros Stooge. Now that is misdirection. 

malek's picture

Yawn, another Kunstler hit piece why Trump is even worse than the spineless dems

gespiri's picture

Of course we can be a nation long as you kick out the people who do not want to be united as a nation.

If they are not part of the solution, then they are part of the problem.

Omen IV's picture

country is very fucked up - the civil war made more sense 150 years ago and murdering 500,000 "real" americans to own slaves? who you could probably buy cheaper by the hour than owning?  - then what is going on today

beleive the FBI Director who is a soothsayer divining Putin's "hate"? for Clinton based upon what ? / sick stupid system of criminals all trying their own scam

sick - game is over

Aquarius's picture

Yes, the War is now between evolving Humanity and the static, status quo, Zchizophrenic Paedophiles that form the  ëlite", and hence "govern" Humanity through criminal racketerring. and oppression.

Paedophilia has now become a thriving Political Protected Industry for the sexual abuse of children, the snuffing (murdering and torturing) of children through circulating media, and the traficking of children; all for Pleasure and Profit and is running a close dollar parallel to the illicit drug industry.

Attempts to circulate this information to the public via the Internet are being enthusiastically and intensely curtailed by algorithmic censorship by the USA IT Industry.

Racketeering; Yes.

The UN: Poverty: The Signature of Failure

Amongst the Last Bastions of Schizopheric devolved proto-humans

Ho hum


Latitude25's picture

My god thats a freakish plastic ass.

lasvegaspersona's picture

I've seen presidential changes since Truman. I have never seen the losers behave so badly. 

My guess is that this is about more than Trump. I think the leaders of the losers feel they have something reallly big to lose. Whether it is pizzagate or whether the hidden (slightly hidden) near collapse of the economy has driven people to the brink, or maybe the water has been spiked...but something is really different.

If folks know what is coming maybe there is fear of losing livelihoods or benefits or worse. Folks should be worried about these things because they will happen but behavior is way way out of historical norms.

south40_dreams's picture

Truman was before my time, but not that much.  This is so different in my lifetime that I don't know how to put it into words, but I totally agree.  Foreign interests are behind this, of that I am convinced.

Miss Informed's picture

The fifth column within the country who are foreign wherever they go

Sledge-hammer's picture
Sledge-hammer (not verified) Mar 21, 2017 12:20 AM

It is not the American Matrix.  It is the Jew Matrix, and you want to unplug from it as soon as you can.  Once you do that, the scales fall from your eyes, the fog clears from your brain, and you see that much of what you thought was the American Matrix (the American Dream), was actually a debt-trap and lie to keep you enslaved within the Jew Matrix.  Unplug and know the truth and true freedom.  You will see that the bits of metal and plastic and kitsch for which you enslaved yourself were meaningless and a chasing after the wind.

Maestro Maestro's picture

Right, typical back-stabbing American reflex of blaming the Jews when they can no longer legitimize their own abominable behavior in the international arena with guns and propaganda movies.

Ron Jeremy did not force American sluts to open their legs and more in porn movies. The Jew paid them and the Americans sold their honor with glee. Likewise, the American soldiers were happy to literally incinerate human beings in Iraq whilst listening to American Heavy Metal blaring "Burn motherfucker, BURN!" in their M-1 Abrams tanks financed by Goldman Sachs.

Fuck you, American.


Elentari's picture

Yes, but - look into this.   Israel and these people own ane command America.


Maestro Maestro's picture

You cannot deflect responsibility for your own actions. That's even more written in stone than any law of physics. When the Jew said "Jump!" it was YOU that jumped; not the Jew nor somebody else.

Miss Informed's picture

We were taught to feel bad about the 6 gazillion. Our good manners compelled us to jump. If "God's chosen people" tell me to jump, who am I to argue?

hobo with a shotgun's picture

Wouldn't be so bad if we just gave up the superpower mantle to China and brought back the troops. The reason England is still a country is they gave up the empire to us when it eventually turns toxic like all empires do.

MuffDiver69's picture

Oh boy...Let me write the same shit again...These assholes have to realize just having Trump is enough change and worth the vote. The left are the ones in meltdown and you see it every single day. Just like this article, you are not getting a prize for stating the obvious and we don't give a fuck about your miserable made up worldview...piss off...

Maestro Maestro's picture

Americans are genociders, sadistic murderers, thieves and fraudsters by nature. (Look at the horror movies you make and watch for entertainment--I can't sleep for weeks after seeing one of those.) That's the essence of America. American mothers do not teach their sons to be good men or their daughters to be righteous ladies. Americans teach their offspring to get ahead by fucking everybody else.

The solution is not to go back to it. The solution is to end it.


Dick Buttkiss's picture

There is no more going back than there is putting Humpty Dumpty together again. This nation has been smashed to pieces by its colossal, thoroughly predatory, crony-capitalist and welfare socilist government.

The next step is for the ruling sociopaths to direct the people's attention elsewhere, which is to say that a major war, perhaps nuclear, is coming.

DonGenaro's picture

I am an *individual*.

And as such, I am an enemy of all mobs (including ones calling themselves "nations").

hangemhigh77's picture

I identify as a horse. This way I don't need a bathroom I just crap on the floor wherever I am. Be a horse it's a great racket.