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  Sunday  June 5  2011    11: 02 PM


The Depression and the future

"Ok, everyone’s talking about the oncoming recession. What it is is the second downleg of the depression we’ve been in since the financial crisis.

"All of this has been baked in since 2009. Since January 2009, when Barack Obama announced his stimulus, which was not just too small, but put together so badly that it was evident it would not kick the economy out of the doldrums. The stimulus would be seen to fail (it doesn’t matter how many jobs it “saved” what matters if it created a good economy.) Meanwhile Obama made it clear he had no intention of restructuring the economy, shutting down any of the major banks or of disrupting the paper for oil securitization game.

"So, anyway, what’s happened since 2009 was baked into the cake. What is happening is what anyone halfway competent should have expected to happen and that includes the massive wave of austerity in the developed world, the high commodity prices, and the continued liquidation of public assets to feed private greed. If anything it’s slightly worse than I expected. I would have hoped that some nation other than Iceland would prove to have enough guts to tell the vultures to fuck themselves, but apparently we’re all eunuchs or morons these days, and the Greeks still aren’t rioting amongst the mansions of the rich, I notice. So who cares what they think, anyway?

"I suppose it’s tiresome to keep saying “I told you so”. Certainly I’m tired of it, but the point is that this could all be predicted, was all predicted (well, not all, I didn’t get the revolutions in Arab countries, though I know someone who did and the clues were there.) Assume that what is happening is, essentially, what your lords and masters are at least ok with having happen. If they weren’t, it wouldn’t be happening. This isn’t a case of incompetence, they didn’t even try to make this stuff not happen.

"The future you’ve got coming from you is a future of unconventional oil extraction: aka fracking. The play is to get back to cheapish oil and make that run for as long as it can. That is what WILL happen. That is baked into the cake. The only economy these people want to run is an petro economy. They will do whatever it takes to run one and continue to use their position in control of legacy capital to extract rent and tax the future. There will be more controls on so-called intellectual property (a contradiction in terms if there ever was one). There will be more security theater. There will be more austerity, which means taking public assets and turning them into what appear to be revenue producing private assets.

"This will go on until the last drop of cheapish conventional oil has been pumped and the last suburb built. Americans, and apparently the developed world, will do whatever is required to see this happen. They will kill whoever they have to kill. That’s what the developed world is, now. This is only compounded by stupidity like Germany going off nuclear without a clear plan of how to replace the energy. Remember, boys and girls, yes, there is blood mixed in with that oil. A lot of it."