Generation Payback: The Sound of Un-hatched Chickens Crashing

Confronted on Tax Day by satellite visions of free market capitalism led by the American Tea Party, global investors began to exit the building. A 34-point drop in the Global Dow on April 16 was followed by a 42-point fall on April 27 and a plummet of 170 points during the first week of May. Now with a lavish bailout in Europe–of the financiers, by the financiers, and for the financiers–investors are retracing the exit steps.

As the cash value of capitalism fell from the shelf of a shaky rally, precisely in alignment with the televised prognostication of Steven Hochberg at Elliott Wave International, heavyweight voices at the Capitalism Knows Best Channel (CNBC) were pleading for a “new normal” that would allow each and every one of us the time and earnings we needed to pay back everyone we owed.

Restructuring is the magic word that signifies the best hope for the consciousness of the creditor classes that they can have their debt bubble and eat it too. Restructuring is the middle term that makes possible the conclusion of a “new normal” whenever the premise turns out to be California or Greece.

It hardly matters whether you favor the private sector or the public. As Robert Prechter has amply documented, social mania has been pervasive, and on his account it could not have been otherwise. Whether the party in power was Democrat, Republican, Conservative, Labor, Socialist, Enron, Madoff, or Lehman, everybody grabbed at least one imminent duty and placed it on the pay-later plan.

My Aunt Billie, who learned her personal finance skills from the Great Depression, warned me early in the 1970s that there was something wrong with the baby boom’s approach to dollar bills. For better and worse, prefigured by Joplin, Hendrix, and Morrison, we winged our boom-time destiny straight into the flame.

If there is to be a process of social healing during the debt detox that lies ahead, as all the junk gets flushed down the world commode, a certain maturity will demand acceptance of the pain that comes with any withdrawal of toxic needs.

And if fortitude will be needed from debt payers, then debt collectors also should confront their complicity in a relationship that long ago showed all the symptoms of codependency. On all fronts public and private we have built a world house of debt. Not only the users of toxic assets, but the pushers, too, need to go through their social share of pain in the coming adjustment to sober living.

One annoying aspect of the Tea Party movement is how it pretends to stand apart from the history that got us here or the pain that will get us out. Scapegoats are most necessary where self-guilt is most threatening. Whose wealth have you been counting on? Whose humanity was the source of that wealth?

If the new Parthenon of the global economy is to be a project of collective restructuring, the creditor class must renounce all ideologies that apologize for debt slavery. The world became addicted to debt partly because there were pusher-men eager to get everybody hooked.

As signified on May 5 by the spinning-top candlestick on the S&P chart, we were transfixed in realization that all the debt in this life might never be repaid. Or if it could be repaid, it would take so long as to be systemically demoralizing. Alienation is the word Marx used to name lives confined to other people’s motives for profit. Indeed, that spinning-top candlestick appeared on the occasion of Marx’s 192nd birthday — the day of the Greek uprising.

Once a person or generation realizes they have sold themselves into slavery, are they required to keep the contract? And if the lender could foresee the whole slavery debt coming, wouldn’t we call it predatory? Therefore, in the name of a crash and recovery that shall not be the re-alienation of the debtor classes, some systematic reduction in accounts receivable is one thing the “new normal” will require.

Arcane financial instruments called the Credit Default Swaps (CDS) are finally explainable on these terms. Invention of the CDS by JP Morgan in 1995 was a symptom that the system as a whole had gone debt-aholic. The CDS was the class consciousness of debt pushers acting out, insuring each other against the prospect of their junkie clients collapsing from under the weight of delivered services. It was a scheme that presumed dollars themselves would be reality enough to sustain all value in the aftermath of a pusher economy.

Creditor classes have developed pretty good notions of what they expect the debtor classes to give up: things like retirement. In return (pun or not) debtor classes have the inalienable right to remind bond holders of something Poor Richard nearly said: never mark a chicken to market before it’s hatched.

Greg Moses is editor of the Texas Civil Rights Review and a member of the Texas Civil Rights Collective.. Read other articles by Greg, or visit Greg's website.

4 comments on this article so far ...

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  1. Don Hawkins said on May 10th, 2010 at 2:11pm #

    Greg watching Capitalism Knows Best Channel (CNBC) and today there going with something called American Titan$. Well a few minutes ago they had on two Wall Street types and they were talking about Exxon. The reporter ask one man about algae and can we use it for fuel. The one man said maybe in ten or was it twenty years and the other man said the last time I checked I can’t use pond scum in my car. Oh yes can’t use pond scum in your car but oil that this very second is destroying the Gulf and headed East. Of course the big one the little fact fossil fuels are destroying creation and my kid’s and there kid’s don’t have a future. These Wall Street types seem to always’ over look that one. Slavery and the people who push it a great place to see them is CNBC. Pond scum is it.

  2. Don Hawkins said on May 10th, 2010 at 3:43pm #

    Obsessive–compulsive disorder (OCD) is a mental disorder characterized by intrusive thoughts that produce anxiety, by repetitive behaviors aimed at reducing anxiety, or by a combination of such thoughts (obsessions) and behaviors (compulsions). The symptoms of this anxiety disorder may include repetitive hand-washing; extensive hoarding; preoccupation with sexual or aggressive impulses, or with particular religious beliefs; aversion to odd numbers; and nervous habits, such as opening a door and closing it a certain number of times before one enters or leaves a room. These symptoms can be alienating and time-consuming, and often cause severe emotional and economic loss. The acts of those who have OCD may appear paranoid and come across to others as psychotic. However, OCD sufferers generally recognize their thoughts and subsequent actions as irrational, and they may become further distressed by this realization. Wiki

    Who in our society would you say is addicted to the system that would be Capitalism and will do anything to protect it. Well a good place to see them is the financial channels here in the States my favorite is CNBC and Fox business a close second. I wonder are these Wall Street types calm and at peace probably not. Let’s see extensive hoarding do they do that? Have and have more. Aversion to odd numbers, hello 1 and 1 is thirty bingo. How about cause severe emotional and economic loss? Humm yes not only to the Wall Street types but the rest of us I guess the slaves. OCD sufferers generally recognize their thoughts and subsequent actions as irrational, and they may become further distressed by this realization. Maybe that’s why this very day in old twenty ten we see strangeness spreading through out the land. I mean just turn on CNBC or Fox and if that isn’t strangeness I would like to know what is don’t watch to long it will give you a headache. I was just watching Fast Money on CNBC Fast Money has a real ring to it and this one Wall Street type said BP is down 1% and is starting to look attractive you see what I mean recognize their thoughts and subsequent actions as irrational then again they may not recognize these symptoms. The acts of those who have OCD may appear paranoid and come across to others as psychotic. BP is starting to look attractive or algae in that one man’s mind pond scum. I still say calm at peace as the people who seem to think destroying creation is no big deal I fail to see how they can even be close to calm and at peace. Then of course we have cut up tires and golf ball’s to stop the leak in the Gulf and we thought all the great minds were gone. Could I be wrong on this maybe a 30 to 1 chance.

  3. Don Hawkins said on May 11th, 2010 at 4:28am #

    Sent this to CNBC this morning

    Nice cup of coffee,

    Wall Street does have some colorful slang. All the Boats Rise, Castles in
    the Sky, Merger Monday, Sell in May and Go Away here’s a good one ”churn,
    burn, and bury” customers, another one body rain I mean who thinks this
    stuff up then of course ‘net-net. That’s only a few but yesterday on
    American Titan$ after old Rex from Exxon said tax carbon and didn’t say much about
    where that tax should be spent this one man I guess was feeling a little
    frisky and said pond scum in reference to algae you know the colors are
    beautiful the red’s the green’s. I have to admit that term body rain do you know
    the term is a bit different and this new one pond scum I know how about
    three Titans on a pond fishing and the one titan say’s to the other is that
    rain I feel it feels as light as a feather kind of like our golden
    parachutes such a soft landing. Here’s an American favorite.

    Fasten your seat belt, ’cause Kansas is going bye-bye think not. Did you
    happen to notice the weather in the middle part of the States yesterday yes
    does happen but back to back tornados long lived tornados a weather term in
    less than a month that’s different will it go back to normal well the blue
    line on the chart for the ice in the Arctic take a look probably not. Oh
    any rain in the forecast? How did James Hansen put it an enormous effort and
    think of this as kind of a war. I wonder what say Senator Orrin Hatch a
    titan in American politics will say today I know we need to work together
    what are the odds 20 to 1 or maybe 30 to 1. Can hardly wait to get more
    reason, knowledge from the American Titans as we all go down the drain in not
    such slow motion without a try a real try.


  4. Don Hawkins said on May 11th, 2010 at 10:41am #

    I thought some of you might want to see this. If you look at this you will see continued high temperatures in the Arctic. Note the temperatures in Canada 18 degrees Fahrenheit above normal. Click on NASA GISS temperature web site and take a look. Is there still time to slow this down maybe not all the changes but will take total focus. Off subject you tell me.