Just like Greensboro, North Carolina
Shovel Ready handouts to cronies
Free streets for cronies,
so they can unfairly compete with the less connected
...Back when the economic tree was loaded with low-hanging fruit, solutions such as lowering interest rates had a large multiplier effect. But as the tree is stripped of fruit, the returns on these solutions [have diminished close] to zero...
Yet Greensboro's leadership doesn't understand
or doesn't want to understand how our local economy recovered
after 2008 and 9
...The status quo’s leaders expect the system to right itself once emergency measures stabilize a crisis. But broken systems cannot right themselves, and so the leadership is forced to make temporary emergency measures (such as lowering interest rates to zero) permanent policy. This increases the fragility of the system...
Increasing debt to increase growth in the short term
while ignoring the long term consequences of backing up the truck
as the debt borrowed has to be paid off with higher taxes
from an economy in decline
...financial ['emergency measures'] inflates speculative bubbles, which eventually crash with devastating consequences. But since the status quo is dependent on financialization for its income, the only possible response is to increase debt and speculation—the causes of the bubble and its collapse—to inflate another bubble. In other words, do more of what failed spectacularly...
Which is what Greensboro's City Council wants to do
with its proposed debt/bond package
which looks like a give away to rental owners who fund their campaigns
...As the economic pie shrinks, the privileged maintain or increase their share, and the slice left to the disenfranchised shrinks...
...The top of the wealth/power pyramid no longer serves in the armed forces, and withdraws from contact with the lower classes. Lacking a unifying social purpose, each class pursues its self-interests to the detriment of the nation and society as a whole.
...superficial success masks the underlying dynamic of diminishing returns: each reflation of the failed system requires greater commitments of capital and debt [and] pushed to new unprecedented extremes, as nothing less will [maintain economic and political stability, and the retention of power by those maintaining the farce.]
...The central bank’s suppression of interest rates is an example. As the economy falters, central banks lower[ed] interest rates and increase[d] credit available to the financial system.
Greensboro is living on borrowed time
...The status quo’s primary imperative is self-preservation, and this imperative drives the falsification of data to sell the public on the idea that prosperity is still rising and the elites are doing an excellent job of managing the economy.
Since real reform would threaten those at the top of the wealth/power pyramid, fake reforms and fake economic data become the order of the day.
Leaders face a no-win dilemma: any change of course will crash the system, but maintaining the current course will also crash the system.
Welcome to 2016-2019."