Rather than go over the sad state of the political order again, I though today would be a suitable time to reprise the sad state of the middle class. Yesterday Charles Hugh Smith had an informative blog republished at Zerohedge, and the title tells the whole story. It's not what you'd call news, but the reminder is sometimes necessary:
Before presenting Smith's data, which is contained in six graphs, here's another reminder. As Smith is well aware, the hollowing out of our industrial base in favor of a financialization of the economy--with the concommitant progressive engorgement of the left/progressive rentier class at the expense of the middle class--has been ongoing since the Reagan years. However, the transformation of the rentier class into what is increasingly a class of speculators is another aspect of this process that has exacerbated all the worst tendencies Smith will document. This part of the transformation has been brought about by repeated bailouts of Big Finance--definitely not your local banks. Beginning in the Clinton years there have been three bailouts, with the most recent having become an ongoing underwriting of Wall St. by the political class--the Uniparty--which relies on Big Finance for campaign funding. Trump, of course, with his fund raising base comprised of the "little people", was a threat to this order that had to be squelched. And was.
So, with that in mind, consider Smith's presentation of the demise of the middle class, crushed by the "elite" rentier class. Smith characterizes this process as the decapitalization of the middle class--the increasing inability of the middle class to accumulate capital. Smith explains this process at some length, so be sure to follow the link for a full explanation. This will help to understand what's behind the GameStop dustup and the rentier class's reaction to it. It will also outline the challenges lying ahead for the Zhou Baiden regime as it caters to the interests of the rentier class as, protected by the New Army of the Potomac, they seek to complete the process of strip mining the middle class. The Big Question, of course, is: When will push come to shove?
In the meantime, as we await events in the real time of history, here are the results of the process Smith describes, in six graphs.
UPDATE: Boy, this really says it all--again via Zerohedge:
By Eric Peters, CIO of One River Asset Management
“I was looking through reddit chatrooms, wallstreetbets, you know,” said the PM. “Kind of felt surprised by the chatter. I didn’t realize how many people out there understand the extent of the Fed market manipulation that occurred over the past year. Ever since 2008 really,” he continued.
“Not sure why it grabbed me. I suppose I’ve just been under this illusion that it’s mostly people in our industry who see through what has been happening, and that the rest of the people working in random industries, with real jobs, haven’t understood it.” I nodded, faith in our institutions gradually slipping away. “The level of disillusion with the system is kind of breathtaking - I just didn’t appreciate how widespread it seems to be.”