Griftopia

Key Takeaways

1. The Grifter Archipelago: Politics as a Distraction

The presidential election is a drama that we Americans have learned to wholly consume as entertainment, divorced completely from any expectations about concrete changes in our own lives.

Manufactured Spectacle. American politics has become a carefully choreographed, 18-month-long entertainment spectacle, designed to distract from the real issues. Voters are encouraged to focus on the drama of the election, rather than the concrete changes (or lack thereof) in their lives. This creates a system where the outcome of elections is less important than the emotional payoff of "winning" or seeing a hated rival lose.

Rooting Interest, Not Citizen Interest. Voters often approach elections with a "rooting interest," similar to supporting a sports team. This emotional investment in the outcome of the election is a distraction from the fact that the political system is not designed to produce real change for the average citizen. This allows the real power brokers to operate behind the scenes, looting the system while the public is distracted by the political theater.

The New American Ghetto. The American political system is increasingly resembling a third-world system, where the leaders and their friends live in luxury while the majority of the population struggles. The engine for this looting is bubble economics, a high-tech casino scam that concentrates wealth in the hands of a few, while leaving the rest of the population demoralized and dominated by debt. The Tea Party, for example, is a manufactured movement that channels public anger away from the real culprits and toward manufactured enemies.

2. Alan Greenspan: The Maestro of Moral Hazard

Greenspan pompously preached ruthless free-market orthodoxy every chance he got while simultaneously using all the powers of the state to protect his wealthy patrons from those same market forces.

The Gerbilish Mirror-Gazer. Alan Greenspan, former Federal Reserve chief, is portrayed as a self-serving figure who used his position to benefit Wall Street at the expense of the public. He is described as a "gerbilish mirror-gazer" who flattered and bullshitted his way to the top, and then used the Federal Reserve as a permanent bailout mechanism for the super-rich.

Objectivism and Self-Interest. Greenspan's early association with Ayn Rand's objectivism, a philosophy that promotes relentless self-interest, is highlighted as a key influence on his economic policies. This philosophy, which views government interference as evil, provided the intellectual framework for the financial disasters of the early 21st century.

The Two-Faced Technocrat. Greenspan was the perfect front man for the hijacking of the democratic process, cloaking his actions in the guise of "apolitical" technocratic stewardship. He preached free-market orthodoxy while simultaneously using the power of the state to protect his wealthy patrons from market forces. His rise to power was a carefully crafted scam, built on a legend of economic genius rather than actual performance.

3. The Great American Mortgage Scam: A House of Cards

The homeowner scam was all about fees and depended upon complex relationships that involved the whole financial services industry.

A Protection Racket. The subprime mortgage market is described as a protection racket, where brokers and lenders sought to maximize fees by pushing borrowers into the most expensive loans possible. The focus was on generating commissions, not on the long-term financial health of the borrowers.

Securitization and Derivatives. Investment banks used securitization and derivatives to package and sell off these risky mortgages, creating a complex web of financial instruments that obscured the true nature of the underlying debt. CDOs (collateralized debt obligations) and credit default swaps were used to create the illusion of safety and to transfer risk to unsuspecting investors.

The Ratings Agencies' Role. Ratings agencies played a crucial role in the scam by assigning high ratings to these toxic assets, often at the behest of the banks that were selling them. This created a false sense of security and allowed the bubble to grow to unsustainable levels. The entire system was designed to concentrate wealth in the hands of a few, while leaving the rest of the population vulnerable to financial ruin.

4. The Commodities Bubble: Wall Street's Casino

The new gaming table was called commodity index investing. And when it became the hottest new game in town, America suddenly got a very painful lesson in the glorious possibilities of taxation without representation.

Speculation, Not Supply and Demand. The commodities bubble of 2008 was not caused by a shortage of oil or other commodities, but by a massive influx of speculative money into the market. Wall Street turned commodities into a casino, where prices were driven up by investors betting on price increases, rather than by actual supply and demand.

The End of Regulation. The government, through a series of loopholes and exemptions, allowed speculators to dominate the commodities markets, undermining the original purpose of these markets as a place for physical hedgers to manage risk. This deregulation created a system where a few powerful players could manipulate prices for their own benefit.

The "Greenspan Put" in Commodities. Just as Greenspan's policies encouraged speculation in the stock market, the lack of regulation in the commodities market created a similar "put," where investors believed that the government would always step in to prevent a collapse. This encouraged even more reckless speculation, driving prices to unsustainable levels. The result was a massive transfer of wealth from ordinary citizens to Wall Street and the oil-producing states.

5. Sovereign Wealth Funds: Outsourcing America

America is quite literally for sale, at rock-bottom prices, and the buyers increasingly are the very people who scored big in the oil bubble.

Petrodollars and Infrastructure. The soaring price of oil, driven in part by Wall Street speculation, led to a massive accumulation of wealth in the hands of sovereign wealth funds (SWFs), particularly in the Middle East. These funds, seeking new investment opportunities, began buying up American infrastructure assets, including toll roads, parking meters, and ports.

A Fire Sale of American Assets. The financial crisis, exacerbated by the bursting of the housing and commodities bubbles, left many American states and municipalities in dire financial straits. This created a fire sale of public assets, with SWFs and other foreign investors snapping up these assets at bargain prices.

Loss of Sovereignty. The sale of American infrastructure to foreign entities represents a loss of sovereignty and control over essential public services. This process is often done in secret, with little public input or oversight, further eroding the democratic process. The result is a system where the profits from American infrastructure flow to foreign investors, while the American public is left with the debt.

6. Obamacare: A Trillion-Dollar Band-Aid

The essence of Obamacare was two ruthless power plays fused at the hip.

A Cynical Political Deal. Obamacare was designed as a cynical political deal, where massive giveaways to Big Pharma and big insurance were exchanged for their support of the bill. The goal was to create a system where the government would seize control of the health care sector, while the private sector would seize control of a large portion of the public's income.

The Individual Mandate as a Tax. The individual mandate, which forces all Americans to buy health insurance, is a massive handout to the insurance industry, guaranteeing them millions of new customers at artificially inflated prices. This mandate is essentially a tax on the public, designed to benefit private companies.

The Failure of Reform. Despite its claims of reform, Obamacare failed to address the root causes of the American health care crisis, such as the lack of competition and the power of insurance companies. The bill was a missed opportunity to create a truly affordable and accessible health care system, instead perpetuating the existing system of corporate control and high costs. The bill was a triumph of political maneuvering over genuine reform.

7. Goldman Sachs: The Great American Bubble Machine

Goldman is not a company of geniuses, it’s a company of criminals.

A History of Manipulation. Goldman Sachs has a long history of manipulating markets for its own profit, dating back to the investment trust craze of the 1920s. The bank has repeatedly engaged in practices that have enriched its executives while harming the public, including laddering, spinning, and shorting the same assets it was selling to clients.

Government Connections and Impunity. Goldman has used its connections with government to secure favorable treatment, including bailouts, tax breaks, and regulatory loopholes. The bank has repeatedly escaped serious punishment for its misdeeds, often paying small fines while its executives continue to profit from their actions.

The Ultimate Grifter. Goldman Sachs is the ultimate embodiment of the Grifter Era, a parasitic enterprise that has attached itself to the American government and taxpayer. The bank is a highly sophisticated engine for converting public wealth into private profit, and it has mastered the art of manipulating the system for its own benefit. The bank's success is not a testament to its brilliance, but to its ruthlessness and its ability to exploit the weaknesses of the American political and economic system.

Last updated: January 23, 2025

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