USA: Export Glass Parking Lots Now, or Be a Banana Republic (Venezuela) Later


Our future is increasingly looking like either an Elitist Authoritarian style Socialism with lower standards of living and lots of small wars, or Populist Authoritarian Dictatorial style "Capitalism" which will drive us to one big war and lots of dead people - Vince Lanci

Amazon economy? Bankrupt states? Obamacare? MEH. None of that matters, Vince Just wake me when the little fat guy nukes one of our carriers.- "Bon Scott"


Demographics as Political System Driver

Is Venezuela a proxy for the US? Initial reactions, our own included, are NO WAY. But think about it. The 2008 bank bailout was the opposite of capitalism. Obamacare is a socialization of medicine. Medicare claims rise, skilled jobs and people (drug addled?) available for them are disappearing. 

It would seem as the East (growing young taxable middle class population) moves towards a capitalistic (not democratic) model, we are moving towards a more socialist system. And that is in no small part because of  our demographics. The baby boom generation distorts every thing they touch demographically: from homes, 401ks, to Gyms, and now healthcare. This is not a judgment, although we have done a polemic style piece blaming them for everything before. 

The wave of Boomers from birth to death were the most powerful drivers of secular trends we have witnessed. And like it or not, the US is moving towards a more socialist setup on the back of that demographic. It has to. Sure it will go kicking and screaming as the shrinking middle class bites back by voting in anti-elitist candidates.  But Trump?

Trump is really just an authoritarian  carpetbagger in disguise.  But that will not matter. People will vent, then be disappointed.. then project their expectations onto someone else with empty selfish rhetoric (Hillary), or worse.. terrifyingly insecure selfish action (Trump 2020).

From 'BoomerCare' Is Here to Stay- Demographics Don't Lie:

The Market Will Fix Everything.. And it Won't Be Pretty

Market clearing events will happen one way or another. Maybe not on an your timeline. But clearing events will happen. It always ends in 1 of 3 ways. Poverty, Death, or Collapse

  1. POVERTY:  The Baby Bust, Gen X, Gen Y, and Millennial Groups hold the bag and exist at a lower standard of living. (Zombie Existence)
    • taxes, inflation, lies, and inferior standards are the methods
  2. DEATH: By War
    • the ultimate market clearing, de-complexifying event.
    • social stratification levels flatten and people are all reduced to the same thing. Humans -Fight Club post debt erasure
  3. SOCIETAL COLLAPSE: . In which event  centralized constructs disappear and simpler but functioning entities take their place- Fight Club again
    • EU- collapses, nation states re-emerge
    • US- Entitlement systems don't just get worse as in 1 above. They totally break
    • Emerging Markets- regress to war lords and anarchy

Rapid fire micro news is mind numbing now. As we are constantly forced  to look at the little picture the world moves towards  militarily driven solutions. As one Soren K. Group contributor "Bon" is saying:

Amazon economy? Netflix loses Disney? MEH.  None of that matters. Just wake me when the little fat guy nukes one of our carriers. Then Ill be happy to pay attention. 'Cause that is where we are going. The VIX will stay at 7% while bombs are dropping on Seoul. Markets do not reflect risk. And we are going bankrupt unless we start a war. I'm waiting to buy a spot in "Detroit by the Sea" when the war starts... NJ will be cheap then right?

Indeed, our future is increasingly looking like  

  1. Elitist Authoritarian style socialism with lower standards of living and lots of small wars, or
  2. Populist Authoritarian Dictatorial "Capitalism" which will drive us to one big war

And so, take note of Venezuela... Detroit's cousin to the South. Then look at IL, CT, and NJ. What we call entitlement programs are really socialist programs.  Or just nuke  North Korea, Iran, and the Saudis Michael Corleone style.

BEAUTY AND THE BEAST - Venezuela is our Newest Dictatorship

via Dave  Pell

"Venezuela always has all the superlatives. It's the world's highest inflation by a lot. It's the world's highest murder rate. A lot of economists will tell you it's the most mismanaged economy in the world. And now, a lot of people are saying the world's most recently born dictatorship. But when I went down there, it was a great place to live, which sounds crazy now, but it's beautiful." A reporter who has been covering Venezuela describes what's it like to see a democracy destroyed? "Things can always get worse and worse and worse, and there's no rule that says that a miserable situation has to end, just because it's too miserable." (Even Radiohead lyrics got depressed by that line...)

+ "Fugitive Venezuelan soldiers have declared a rebellion against 'the murderous tyranny' of the president. Dissident officers have fled the country, seeking asylum. Grenades have been fired at the Supreme Court and, this weekend, assailants under the command of a mutinous captain attacked an army base, making off with weapons." From the NYT: As Maduro's Venezuela Rips Apart, So Does His Military.

+ "Since Venezuela's economy began to melt down in 2014, violence, triple-digit inflation, and shortages of food and medicine have caused hundreds of thousands of people to flee in the ways available to them. Elites have obtained U.S. visas and left for Miami. Those in the middle class have escaped by plane to places such as Buenos Aires. The poor have walked across the border to Colombian cities. But there is no refugee flow quite like that of the Warao to Manaus." From BusinessWeek: Forced Into the City After 9,000 Years in the Jungle.


Demographically Driven Banana Republic or Nuclear War ?

We are on an economic Venezuelan path but few see the emperor's creeping nakedness yet.  A generation that was the peak of capitalistic success (excess) in terms  of stock  valuations will next sound the siren for more socialist policies. And that is not necessarily a bad thing. Problem  is we've saved nothing in the good times to prepare for it.

Worse, those that did try to save were robbed by the Fed and other trickle up policy tools. And those people need the kind of help that capitalism won't provide in its current US form short of soylent green.

Failed Democratic Socialist policies de-evolve into dictatorships as the need to use force increases. That is Venezuela now. Failed Capitalistic Democracies..... same thing. Difference here is we replace Capitalism (true capitalism does not exist in the US now) slowly with Socialism to appease the have-nots.. and then we fail.

Or we could just have a bigger external war while we still can. Venezuela does not have that choice.


rf80412 Wed, 08/09/2017 - 12:52 Permalink

The moneyed elite have a vested interest in the system not collapsing into road war, and so does everyone else despite how much they grumble.  #1 is the only feasible outcome barring something truly unforseen and/or uncontrollable.  Any unwinding will be slow and carefully contrived to be as painless as possible.  After all, more opportunities for social control and rent-seeking are good for the elites, and people will tolerate them to the extent that they allow life to go on.

King of Ruperts Land rf80412 Wed, 08/09/2017 - 13:18 Permalink

USA is not Venezuela for so many reasons. We can have an internal struggle as Trump outlines. We can eliminate the IRS if we put our minds to it. We have so much untapped labor and talent being wasted in the government and financial industries. The country needs to be turned over like a field is plowed. It will be bloody yes, as Trump has said.

America will be made great again. Long live Trump.

In reply to by rf80412

Dolar in a vortex Wed, 08/09/2017 - 12:57 Permalink

No war coming, we will just skate on to the next knife edge of hysteria, maybe Iran will be back on top, maybe Russia/China, but any war we will fight will be by proxy.The big 3 don't want to become the final 2.

Honest Sam Wed, 08/09/2017 - 13:21 Permalink

The middles' descent into the land of poverty began quite a while back, whose circumstances were and are being mitigated by borrowing for the big three: Homes, Cars, and Furniture.Jobs and Careers are being jettisned by companies faster than the Coyotes being pursued by Border Patrols can dump their mexican emigrants in the desert.Socialism without actually calling it that has been a significantly growing part of our economy since 1980, and yer will continue to grow because there is no way to 'produce' ourselves out of it.  Gradually the masses will become more like the Brits, Scandiavians, and in some poorest of the poor cities and enclaves within them, like Cuba, Venezuela, and SoCal. Retail is the first to go and happening as we type.  Unless we can kill off the Bezos' of the country, seeking monopoly."Alea iacta est".  

lasvegaspersona Wed, 08/09/2017 - 13:38 Permalink

How does the destruction of property add to the wealth of the planet?It does not.Destruction of the current system of keeping score (the currency) could give us the same cleansing benefit without the bloodshed and destruction. kinda like a good enema.....

King of Ruperts Land lasvegaspersona Wed, 08/09/2017 - 15:17 Permalink

Property destruction is not the primary purpose of war.

Stop using the word "planet" or I will call you a globalist rock worshiper.

Seriously. Stop talking like a Globalist. What if your plane breaks down and has to put down in "fly over" country?. Seriously, you could get your face punched in.

I think all of America's problems are internal. America has two oceans and ICBMS and Bombers and Nukes and enough conventional power to keep Canada and Mexico at bay.

We don't need to export war or glass anyone. That grand chessboard crap is our illegal deep state dictatorship and their MSM traitor partners talking. We need to destroy them. that is an internal issue.

yes: "good enema....."

Not just the currency system but a whole financial and governing and mindset structure that is so crippling, dysfunctional, and destructive of the very ideas of America.

I don't think it can happen without some real ass kicking.

To many entrenched and intertwined interests have the system set up just the way they like it. As Trump said "the system is rigged"

In reply to by lasvegaspersona

redmudhooch Wed, 08/09/2017 - 14:11 Permalink

I don't think they understand that Trump is their last peaceful chance to fix what they've fucked up. People are sick of this nonstop bullshit. This country could easily be fixed if our politicians were not corrupt. We all know who the enemy is now. Your old tricks no longer work. You no longer control the narrative.

AGuy redmudhooch Wed, 08/09/2017 - 14:58 Permalink

"I don't think they understand that Trump is their last peaceful chance to fix what they've fucked up."

Nope, Drumpet is no better than the previous presidents. More War (Syria, KSA, & NK). Lots of Goldmanite Cabinet Picks. NeoCons for Miltary advisors. I see no difference except that Trump has the biggest ego of them all and is driving the US straight into a nuclear war over the sh*thole called North Korea.

"This country could easily be fixed if our politicians were not corrupt."

Nope since most of the population is no better and dumbed down. The Public largely voted for the politicians, and it takes two to tango. Plus we have demographic cliff with the boomers retiring and Trillions in promised unfunded entitlements and pensions. There is no way out of this mess.

In reply to by redmudhooch

HoyeruNew Wed, 08/09/2017 - 14:11 Permalink

right, entitlement programs are socialism yet a previous paragraph mentioned how bailing the banks is anything BUT Capitalism. Yes, entitlement programs are the problem, yes indeed.

King of Ruperts Land Wed, 08/09/2017 - 14:57 Permalink

The USA is a dictatorship already. What do you think the "Deep Sate" is?

Trump is a Coup to overthrow this illegal dictatorship.

The Presidency is just a foothold. We have landed on the beaches that is all. We are under direct fire by the traitor MSM. They need to be neutralized by the people pronto.