Political and Social Conflict Is Accelerating: Here’s Why

Political and Social Conflict Is Accelerating: Here’s Why, by Charles Hugh Smith.

That economic, social and political conflict is accelerating is self-evident. What’s open to debate are the core drivers of conflict …

The status quo elites can no longer mask soaring costs of essentials, nor soaring wealth and income inequality between the top .01% (Oligarchs), the top 9.99% who enrich the Oligarchs with their discretionary spending and technocratic and managerial labor, and the bottom 90% who are rapidly losing ground on all fronts: economic, social and political.

The elites’ “fixes” to the social and political conflicts unleashed by the rigged financial system and winner take most economic order are politically expedient, meaning they don’t actually address the sources of conflict, they merely paper them over with PR as a means of preserving the elites’ wealth and power.

There’s an awful lot more money in the world than there was two decades ago. It used to be that millionaires were rare and a billion was a huge amount of money. Now we measure national economies in trillions and most anyone who owns a house in many parts of most western cities is a millionaire. So, where did all that new money come from? Who manufactured it, and for whom?

The elites’ fundamental financial “fix” is to create trillions in newly issued currency and distribute it to the banks, financiers, super-wealthy families and global corporations– the top .01% Oligarchs.

This “fix” accelerates the asymmetric distribution of wealth by enabling the already-wealthy to buy more productive assets, fund stock buybacks, etc., while forcing the bottom 90% to borrow money from the Oligarchs to make ends meet: the rich get richer, the poor get more indebted.

[This accelerates] the very erosion that fueled social / political conflicts in the first place. In effect, the elites’ “fixes” are accelerating the conflicts that will ultimately lead to their downfall.

This is why the unraveling cannot be reversed or stopped: all the enormous efforts being expended by the elites to maintain the status quo exactly as it is now, with the vast majority of wealth and power in their hands, preclude the structural changes needed to re-set the status quo onto a more sustainable (i.e. more transparent, productive, efficient and decentralized) and less rigged-to-benefit-the-few path.