Neofeudalism's Tax Donkeys (Yes, You) And The Battle For Control Of Resources
In the New Feudalism (Neo-Feudalism), they will tell us there is a Free Market, but it will be an illusion. Only the Elite, and the few who are allowed to join the ranks of the Elite, will control the Markets and the Government. Wait a minute. Isn’t that what we already have? – Shorty Dawkins, Associate Editor
This article was written by Charles Hugh-Smith from OfTwoMinds blog, and found on ZeroHedge.com
Those who own the resources and influence the political control of those resources are the New Nobility in a pernicious Neofeudalism enforced by the very government that claims to serve the debt-serfs and tax donkeys.
Let’s tease apart several strands of Neofeudalism, my preferred term (along with Neocolonialism) for the Status Quo.
It is increasingly clear that a new form of feudalism has subverted democracy, and that the New Feudalism is powered by concentrations of private wealth and centralized state control: what I call the New Nobility.
Recall my Neofeudalism Corollary #1:
If the citizenry cannot replace a dysfunctional government and/or limit the power of the financial Aristocracy at the ballot box, the nation is a democracy in name only.
The essence of Neofeudalism is: those with access to the low-interest unlimited credit spigot of the Federal Reserve become more equal than others–the perfect Orwellian description of a Neofeudal arrangement in which financial leverage buys not just rentier assets but political power and control.
Neofeudalism depends on the cultural supremacy of Neoliberalism, the belief that the social order is defined and created by markets: if markets are free, participants, society and the political order are also free.
This conceptual framework is the perfect enabler for the dominance of credit-based, leveraged capital, i.e. Neofeudalism. In a “free market,” those with access to nearly-free money can outbid everyone who must rely on savings from earned income to finance borrowing. In a “free market” where those with access to leverage and unlimited credit are more equal than everyone else, the ability of wage earners to acquire rentier assets such as rental housing, farmland and timberland is intrinsically limited by the financial system that makes credit and leverage scarce for the many and abundant for the few.
Those with access to the low-interest unlimited credit spigot of the Federal Reserve are free to snap up tens of thousands of houses and tens of thousands of acres of productive land–the classic rentier assets that reliably produce unearned income because people need shelter and food–along with other rentier assets such as parking lots and meters, fossil fuels in the ground, and of course the engines of credit creation, the banks.