Inflation and “Socialism-Lite” Are Just What the Billionaires Want
Inflation and “Socialism-Lite” Are Just What the Billionaires Want by Charles Hugh Smith for Of Two Minds
After a bout of inflation and “socialism-light”, we could end up with even more extreme inequality when the whole rotten structure collapses.
Imagine owning a Buffett-Bezos fortune of bilious billions, or even 10% of these mega-fortunes, i.e. between $5 billion and $20 billion. Heck, imagine owning 1% of these mega-fortunes, i.e. $500 million to $2 billion.
You’re extremely rich so you can buy the best advice. Your capital is mobile, and so are you. You can live anywhere and shift your capital anywhere.
Your advisors have noted an increase in media chatter on inequality, for example: The Bill for America’s $50 Trillion Gluttony of Inequality Is Overdue, and they’re busy preparing plans to weather the storm and preserve your fortune come what may.
It’s all too obvious that a claw-back of the trillions plundered by America’s 0.1% is now inevitable as the pendulum has swung to extremes of looting and parasitic predation that have destabilized the social and economic orders. So Job One is managing this claw-back politically and financially to leave the fortunes of the super-wealthy either unscathed or even more magnificent after the dust settles.
The super-wealthy have two key weapons at their disposal: inflation and “socialism-light.” Once the world’s governments borrow and spend enough money supporting all the insiders, bread and circuses for the masses (Universal Basic Income) and giveaways to industry and construction (under the happy rubric The New Green Deal), inflation will be roaring higher in no time.
What happens in runaway inflation? Tangible assets soar: land, timber, railroads, gold, mining companies and stocks of truly profitable enterprises (not zombies propped up with debt and bogus “profits” ginned up by accounting tricks).
What do the super-wealthy own? Land, timber, railroads, gold, mining companies and stocks— all the tangible assets that will maintain or increase their value in runaway inflation.
(Recall that “inflation” is not one dynamic; many are protected and others actually gain while the masses are impoverished: “Inflation” and America’s Accelerating Class War9/18/20.)
“Socialism-light” is equally beneficial to the super-wealthy. “Socialism-light” is my term for the Aristocracy’s management of the extreme inequalities of wealth, income, power and privilege. The basic idea of “socialism-light” is to spread a thick layer of gooey PR over the same old system of legalized looting, parasitic exploitation and neofeudal predation and then have the government borrow endless trillions to fund bread and circuses for the masses (Universal Basic Income).