Reality Receding Across America
Sep 17th, 2009 | By James Howard Kunstler | Category: Featured, Macro Economics
Now that everybody in the USA, from the janitors in their man-caves to the president addressing congress, has declared the “recession” over, is exactly the moment when what’s left of the so-called economy is most likely to implode. If there were still shoeshine boys on Wall Street, they’d be starting their own hedge funds now, and CNBC’s Larry Kudlow would be toasting them in the Grill Room of The Four Seasons. What we’ve seen in the vaunted rally for the last six months is the triumph of wishing over facts, combined with the most arrant market manipulation by floundering banks backstopped by a panicked government — all pounding sand down a rat-hole of hopeless non-performing debt, while pretending that the machinery of capital finance still grinds on.
Despite what a few elderly Mr. Naturals may say about abolishing “capitalism,” we’re not going to have an advanced economy without a coherent banking system, and by advanced economy I mean one in which the lights stay on. By coherent I mean a system that is able to deploy accumulated wealth for productive purposes, in the service of continuing civilization. (And, yes, I know that the followers of Daniel Quinn are not so sure that civilization is worth the trouble, but unless you support the killing-off of about six billion humans right away, things on Earth are not favorably disposed just now for a return to hunting-and-gathering.)
I would hasten to cut through the fog of despair to reassert — for the thousandth time — that a true American perestroika is possible, if the public could overcome the plague of cognitive dissonance sweeping the land and form a consensus for action that comports with reality’s agenda. But that is looking less and less likely. Instead, what we see is a rush into delusion, seasoned with grievance and gall. Spectacles like last weekend’s march on Washington don’t happen for no reason, of course. From where I sit, the uproar can be attributed to comprehensively bad American leadership, a crisis in authority and legitimacy that has left a functional vacuum in every executive office throughout the land — from the White House to the state houses, to the lairs of the CEOs, to the towers of the deans and department chairs, to the glitzy sets of the nightly news deliverers, to the makeshift quarters of the NGO chiefs. In former times, clueless and impotent leaders stuck their heads in the sand. Nowadays, with pandemic narcissism abroad in the land, the heads are more usually inserted into the aperture that leads into the large bowel….
But I indulge in diverting objurgation when I should perhaps explain this American perestroika more clearly. The Russian word roughly translates to “restructuring.” They flubbed it in 1989 because their system was too ossified and too far gone — though history and circumstance eventually did it for them. A similar outcome is possible here, too, in which things just have to completely fall apart before emergent reorganization occurs. But you can be sure that if we allow this to happen, an awful lot of things will get smashed along the way, including lives, careers, families, property, and cherished institutions.
This monster we call the economy is not just an endless series of charts and graphs — it’s how we live, and that has to change, whether we like it or not. Now, it is obviously a huge problem that a majority of Americans don’t like the idea. If they were true patriots, instead of overfed cowards and sado-masochists, they’d be inspired by the prospect. But something terrible has happened to our national character since the triumphal glow of World War Two wore off. I just hope that the Palinites and the myrmidons of Glen Beck don’t destroy what’s left of this country in a WWF-style “revolution.” In the best societies, such are marginalized by a kinder and sturdier consensus about justice. In America today, the center is not holding because there is no center.
American perestroika really boils down to this: we have to rescale the activities of daily life to a level consistent with the mandates of the future, especially the ones having to do with available energy and capital. We have to dismantle things that have no future and rebuild things that will allow daily life to function. We have to say goodbye to big box shopping and rebuild Main Street. More people will be needed to work in farming and fewer in tourism, public relations, gambling, and party planning. We have to make some basic useful products in this country again. We have to systematically decommission suburbia and reactivate our small towns and small cities. We have to prepare for the contraction of our large cities. We have to let the sun set on Happy Motoring and rebuild our trains, transit systems, harbors, and inland waterways. We have to reorganize schooling at a much more modest level. We have to close down most of the overseas military bases we’re operating and conclude our wars in Asia. Mostly, we have to recover a national sense of common purpose and common decency. There is obviously a lot of work to do in the list above, which could translate into paychecks and careers — but not if we direct all our resources into propping up the failing structures of yesterday.
The most dangerous illusion, of course, is a belief that we can return to a hyped up turbo debt “consumer” economy — and perhaps the most disappointing thing about Barack Obama, is his incessant cheerleading for a “recovery” to what is already lost and unrecoverable. The man who ran for office on “change” doesn’t really have the stomach for it. But, of course, events are in the driver’s seat now, not personalities, even charming ones. I’d venture to say that if Mr. Obama thinks he’s seen a crisis, and gotten through it, then he ain’t seen nothin’ yet. We are for sure not returning to the kind of credit orgy that made the last twenty years such a nauseating spectacle — of which, by the way, the misfeasances and wretched excesses of Wall Street were just one manifestation.
Some theorists out there say that economy follows mood, not vice-versa, and that the anger and sourness on display around the USA, in events like the weekend Washington march, is a clear sign that tectonic shifts in the structures of everyday life are sure to follow. There are too many truly good and intelligent people in this country, to leave our fate to the Palins and the Glen Becks [and Obamas—ed.] But the good people had better man up and start telling the truth with some conviction that the truth matters.
Regards,
James Howard Kunstler
September 17, 2009
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[...] bubble. Home prices sky rocketed and economic wealth was largely created by a real estate bubble. Reality Receding Across America – whiskeyandgunpowder.com 09/17/2009 Now that everybody in the USA, from the janitors in their [...]
James Howard Kunstler,
Since the American Government has been blowing everything for so many years, one would think with enough liquid soap they could blow bubbles for years more.
Douglas C Trant
You make excellent points and are surely (mostly) right.
Not sure what you have against Beck. Sure, he’s histrionic. But he makes some of the same points that you do, and is the most prominent voice in the media on many of these points.
Maybe you should connect with him and help guide him in ways that will help inform policies that you think would help our country rather than smugly dismiss him and the millions of us who see much truth in what he says.
i like this article, but had to read it twice to get thru the large words. Good observations on Beck and Palin.
[...] I believe is that we now have a complete void of leadership. Whiskey and Gunpowder writer James Howard Kunstler writes about it better than I can: From where I sit, the uproar can be [...]
WHy single out Beck and Palin? Not Keith Goebbelsmann or CHris (pee my pants and the sight of Obama) Matthews or George (I’m a jew who worked for the Nazis) Soros?
Pretty arrogant. And while I hate Beck, I’m a proud myrmidon! We’re ready to kick over the clay giant. Read more Lew Rockwell, Will Grigg, Stephan Kinsella, etc. Ha!
[...] does not engage in local business Preservation of the beneficial owner of the company’s confidentiReality Receding Across Americawhiskeyandgunpowder.com says: Now that everybody in the USA, from the janitors in their man-caves to [...]
I understand not everyone likes Beck’s style, but in a world where snot nosed republicans are completely ineffective and IMPOTENT in every sense of the word I am sure, at least Beck is DOING something about those who clearly hate capitalism and our former republic’s former principles.
I am tired of being nice, and respectful, and forking over my tax dollars to a system of government that claims to be democratic (we were founded as a republic by men who understood that a democracy is the WORST form of government) while ignoring the will of the people and robbing the producers in order to subsidize those willing to sell their souls and their votes in exchange for a bowl of porridge. Is the EPA POLITELY turning off the water in the San Joaquin Valley? No, they just turned the spigots off and told the farmers to go pi$$ up a rope.
You know, I was thinking of asking the simple question of how to get into farming in our current fascist state, but it is pointless. The system may well have to collapse in order for a person to be able to build a working, productive farm without constant ****ery from the government. Reference the San Joaquin situation for why I feel that way.
Of all the people out there, Beck and Palin at least speak the truth as they see it, unvarnished and polished for the Vasser crowd and I for one am proud of them for it. Of all the people on the political scene today, Beck and Palin are the two that Ayn Rand would most likely admire. Rather than continuing to objurgate Beck, Palin, and their supporters, you might want to remove your parietal lobe from the aperture that leads into the large bowel at least far enough so that you can take a breath and maybe realize that you and they…and WE…are on the same side.
Best Regards and I sincerely hope that you realize that I dearly enjoy most of your commentary,
Tim Singleton
hello
I have to agree with you Howard Kunstler, you make some great points especially about america having to start building and creating something of value. I believe the banking system and wall street deserve the most reform. I mean bank executives that make hundreds of millions of dollars, a hedge funds and derivatives market that is worth 10 times the worlds GDP? Is this really the best way to allocate capital. Up until the collapse banks like GOLDMAN SACHS where hoarding cash 450 billion for Goldman, 350 billion Morgan Stanley. As world population grows and resources become scarce, we cannot afford to distribute wealth upward. I have no problem with some one or some company becoming wealthy because they work hard,
or have a great idea and provide something of value , but to shovel money at wall street through fractional reserve lending is just stupid.
lars
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I thought Glenn Beck made it pretty clear that an economy built on debt (personal and government) is unsustainable. “You can’t spend your way out of debt.”
He also made it very clear that we can’t and won’t go back to the way it was. He said no matter who is in control, our future is going to be hard. We just don’t want Marxism to be our controller. Instead, we want the Constitution to be our guiding light.
I thought William F. Buckley was dead. Big words do not always mean big intelligence.
It is ok, you can make fun of my lack of knowledge of obfuscating words during cocktails at the club.
Maybe I do not know what you mean but let me say this, I would much rather be stuck in a boat with Palin than Barney and his $2 million dollar bonus boy Moses. I would rather listen to the arguably crazy Beck than Schumer, Dodd, Biden, Barry O, Pelosi or Bernanke. Should I add to the list? Kerry, Dead Kennedy, Waxman, Feinstein, Spitzer, Rangel, ad nauseam
Should these people be forgiven for destroying our great country?
We raped your daughter 20 times last year, we are only raping her 10 this year, what are you complaining about?
We know “Change” is coming, Washington is destroying the value of the dollar.
My children at 20 do not make what I did as a teenager 35 years ago, even in inflated dollars.
Yard sales are regulated by the Federal government and you call for a civilized return to equilibrium, ha. Good luck.
Kunstler has a problem with Beck because Beck’s — altogether now — raaaaaaaaaacist.
Got it?
Now just rinse and repeat as has been done for the last fifty years and all will be well. Or maybe not. But at least no one will be raaaaaaacist, and there is nothing in this galaxy more important than that. Right Kunstler?
James Kunstler is a really fine writer. He also creates and supports many good ideas in the area of urban design. Too bad he still buys-in to the politics of scarcity. Right now with the current depression raging, his Luddite thinking appears attractive. His arguments about dwindling resources requiring diminished technology use, will go out of fashion, as a future filled with the likes of regenerative stem-cell medicine; safe, clean nuclear power; highly efficient photovoltaics; bioplastics; recycling; electric hybrid non-polluting personal vehicles, energy efficient housing; walkable urban design( thanks, James); immersive mobile communication; and on and on and on, as a future unfolds that, in the long run, will be quite different from the bleak, toilsome, post-apocalyptic future that Mr. Kunstler lays out. In the short run, JHK will find an audience.
[...] Reality Receding Across America [...]
Dear Tim Singleton and Bill Simmons: I would enjoy talking to both of you. Gary, if they ask, please give them my address. Robert, nice post. LBT
This was an excellent article – very insightful, bordering on prophetic! (I’m afraid)
I don’t understand the ill-will towards Glenn Beck and Sarah Palin, however – they both believe in limited government, which is the only thing that could possibly save our republic.
Great stuff. Really thought provoking. We wanted to let you know we pushed this link out to our LifeSpace Community readers on our blog on Monday. Powerful stuff that needs to be discussed!
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