How it All Falls Apart

In Uncategorized on July 29, 2009 at 10:30 pm


Pity the Fools – when thinking about the rot that goes under today’s “intellectuals” “experts” “commentators” and “thinkers.” The ignorance of the prominent, and bien pensent must be history’s most eternal principle. They have a way, men whose mental agility enjoys wide recognition, of being oblivious of the most obvious and inevitable reality, even if it  is starring them straight in the eyes.

Granted, there are always exceptions, such as Lord Keynes’ commentary on the Treaty of Versailles, whose  paucity is proof of their rarity. The likes of Nouriel Roubini only buttress the impression that the Keynesian tradition of successful prediction is the domain of economics, for  the social sciences didn’t foresee a single significant significant event of recent history. Failed to warn of the rise of Communists in Russia or China – the nastiness of the Fascists and Nazi’s…where were the seers of the 18th century talking about a Civil War to liberate America’s slaves in the 19th, or 19th century feminine oracles imagining women’s suffrage at the start of the 20th?


Crash of Races, is about precisely the kind of prediction, social scientists refuse, and seem incapable of making. Since economics enjoys the best track-record amongst all sciences for forecasting – we are speaking about the best of the worst here – it is only fit, that we must rely on economic terms  to imagine the inception of a Crash of Races.


In most of America the underdeveloped are given preferential access to high-priced social goods created by the developed. Well of Whites and Asians, who make these social goods available in the first place, are as oblivious to the costs of such preferences, as they were oblivious to the social costs of slavery when importing Negroes to the Western Hemisphere two hundred years ago.

Along with historical ignorance, racism and discrimination have a cost. A cost paid by the non-black American middle class of American society, via taxes, economic productivity, and trade offs. In as much as the payer is not the beneficiary of the preference, he is directly subsidising someone else’s privilege. In as much as the payer also happens to be the person who contributes the most to America’s wealth, his economic productivity assures the very existence of complex social goods. Ironically, politicians make it their business to seize the fruit of the productive middle class, and plow it into the sterile fields of the least productive elements of American society!

Again, three costs are involved:

1) The middle class creates the wealth in society which is possible only because of the investments it has made into itself previously. This investment, coupled with labour, is the investment cost.

2) The middle class subsidises – it pays for the preferential access to its wealth – to those who make virtually no contribution to it, i.e. those who invest nothing into themselves.  This is done as a matter of politics – since the preference, is predicated on being given to the unproductive! This is the subsidy cost.

3) The middle class, by both creating the wealth and then subsidising its theft, is incurring an opportunity costs. It is giving away money whose value depreciates, instead of investing it into profitable ventures.

Added up, these three costs amount to a stiff penalty on productivity, and assure that economic incentives are skewed against it. The economy, has no where to go but down,  and economic contraction becomes a when, not an if.


America’s economic contraction began in the late sixties, when American productivity started to decline.  Previously, a single father could earn enough money to assure his children’s well being and education. By the early seventies, this was no longer a possibility. From that moment when wealth creation became criminalised, national economic policy has tried every trick in the trade to disguise its prime obsession – passing the buck to the international economy. Hence we witnessed the stagflation of the seventies followed by:

1) Insane supply side pseudo-economics. In the seventies, Taiwan and Honk Kong became prime importers of cheap goods, their slave labour exerting counter-inflationary pressure in the American economy. When labour prices and conditions caught up in these two countries, counter-inflationary politics migrated to South East Asia, and Mexico. When Indonesia, Korea, Malaysia and NAFTA began to run out of steam, Asian supply chains focalised on China, while maquiadoras spread to Jamaica and Puerto Rico.

2) Selling debt, as a way to finance America’s rampant consumption. This includes both tight and loose monteary policy, depending on what it takes to attract the international debt markets to our IOUs – the underlying objective – debt financing, is the same.

3) Increasing government share of economic activity either through war or social expenditures, as a matter of counter-cyclical market intervention. Under the Republicans, it is always Star Wars, and military spending. Under the Democrats, health and social expenditures. Either way, the money is always spent to stave off a depression, and shrinks the country’s market economy in favor of centralised bureaucracy, limiting the role of market incentives in the economy, and exerting downward pressure on productivity.

Nearly forty years following the destruction of America’s market economy, by the double whammy of

1) brutal political interference in the labour, education, and service sectors, and

2) standing by idly while illegal slave-like labour annihilated work opportunities for America’s unskilled workers,

palliative economic policies have finally run their course!

Chinese labour costs must rise as America limits debt supply in order to escape descending into a deadly debt-spiral as further government encroachment on market activity will amount to the nightmarish vision of productive assets being obliterated by inefficient and cleptocratic bureaucrats.

Two immediate issues arise for America’s predominantly White Middle Class. With an economy in tailspin, why push it off the cliff by investing in those who produce no part of it!? With jobs becoming scarce, why allow crowding-out by those who are artificially inflating the labour supply?!

Losing one’s job, still obliges one to continue paying one’s bills. If this means that both husband and wife take up menial jobs at McDonals’s they are faced with competition from undocumented immigrants. The pie is smaller, but the hunger is greater. First to go as a result of economic contraction – illegals.

Closely following on their heels – “minorities” whose privileges are subsidies by those, who can no longer afford the economic destruction such subsidies bring to the economy.

If water is needed to make lemon and sugar into lemonade, then declining productivity, relentless theft and redistribution of wealth, and collapsing employment perspectives, are a recipe for Racial War.


The idea of opening up low-class jobs to middle class wage earners by reducing competition from illegal aliens, is a recipe for violence. Mexico’s economic growth resulted from a steady flow of remittances from El Norde. A cessation of such flow would hit consumption, and the immediate return of Mexican wage-earners from America would flood Mexico’s labour market, at a time when a contraction in consumption would lead to massive layoffs. Mexico will use all the tools in its diaspora arsenal, to prevent such a scenario from taking place, and one wonders, what kind of political will-power America will need, to force Mexico’s hand?

The same goes for abolishing quotas and Revenge Racism. At a time when every grieved “minority” wails about the disparate impact the economic crises has on its members’ income and employment opportunities, what kind of conflict is possible if the abolition of Revenge Racism inverses four decades of anti-market policies, and rebirths incentives for productive economic activity? Violence, of unthinkable chaos and proportions?

Middle Class White and Asian America between a rock and hard place. On the one hand, Whites and Asians will continue investing in education, via family discipline and their taxes. On the other, they will have fewer job opportunities, and fewer sources to draw their investment. Their only logical course of action is to remove illegal competitors for jobs, and to insist that the profit from their investment, must accrue to them, otherwise, their investment is being stolen at a time when they are hard-pressed to put food on the table. Disincentivising investment when the only possible route for kick-starting America’s economy comes from investment – is like paying to dig one’s own grave. And if the grave must be dug, no sane human being, will dig one for themselves.

But the effect of an economic contraction isn’t felt only through shrinking job supply, and decreasing wages. Public Goods, like private goods, must rise in price, and increase in scarcity. Bloated budgets at a time of limited fiscal means, presage the elimination of schooling, policing, and social services.

Consider what happens if a state like California is forced to close even a third of its public Universities? The price is incurred by the White and Asian kids who pay the costs of the Universities! The continuation of Latino quotas would be a further destruction of White and Asian wealth at a time when preserving such wealth is crucial to preserving the entire country!

The contribution of Latinos’ to the California School system, is paltry compared to the contribution of Asians who are numerically one fifth of the Latino population, but tender nearly half of the UC systems costs!

It is the educated labour of the Smiths and Changs that invested in their children’s studies, paid tuition, and whose taxes paid for professors wages in the UC system, not the unproductive and untaxed labour of Latinos, who benefited from White and Asian subsidies for the Revenge Racism which opened the UC system to them via quotas, and student aid.

What happens when the White and Asian money for such lavish Latino privilidges dries up? Naturally, the Latinos no longer get a free ride, and their only means of redress, become violence. The only sane reacion of Whites and Asians will be to use the remaining public resuorces they posses, to defend themselves by allocating it to the police. The spiral of raging Latinos, against a militarised police, is inevitable.


If the economic wizards of America’s economy fail to pass the buck to a global economy, a Crash of Races follows in their failure’s stead. Whether or not passing the buck is still possible, will not be up to Washington, or Brussels. Rather, it will be the leadership in Beijing, who will have to eventually openly choose tween millions of dead Chinese, or millions of homeless American and Mexicans. China’s choice will be obvious, and the economic circus of the last forty years, will die its last death. America’s choice, will be less obvious, because it is the one doing the dying. The day of reckoning has been pushed off, but in the Wall Street Drama of 2008/2009, the White world caught its first glimpse of the inevitable.

Inevitable, because when a nation is forced to choose between itself, and the other, the nation which no longer has a “self,” must be the first to go.


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