It’s ALWAYS about the economy, stupid.

As James Carville said back in 1992 to help Bill Clinton (D) prevail over George H.W. Bush (R) in what now, looking back, seems like a downright quaint presidential election during much simpler times – “it’s the economy, stupid”.

That part still hasn’t changed much. What may have changed since then is how much more faith people seem to be putting in (D)s and (R)s to help shape their destiny, solve all their problems, and determine their ability to lead a more fulfilling life going forward. It’s as if everyone’s looking for a deity (or a scapegoat), and few can think of more than two places where they might find it.

We’re going to keep this simple (well, sorta).

For all the horrors taking place in Minneapolis this week, the shamefully unfortunate circumstances in NYC’s Central Park, the role of “Jack vs. Zuck” in determining who should be allowed to say what, and of course our ongoing response to COVID-19 (and the renewed symbolism of the “face mask”), it’s clear that we all have a tendency to get caught up (and probably too easily) in the emotion-driven “political” themes of the moment that pit one against another, diametrically. Whether it’s black vs. white, rich vs. poor, male vs. female, cisgender vs. transgender – you name it, it’s cool to pick a side. At least, it seems comforting. Once you know which side you’re on, you then know which side to blame, which then makes it easier to let your anger out because you have somewhere you can direct it. And letting your anger out feels good, because lord knows there’s plenty to be angry about these days.

The problem? Painting the world in such simple colors is ultimately a recipe for mass misunderstanding, and a world plagued by mass misunderstanding is much more likely to focus on all the wrong problems – or at least, be distracted from the ones that might actually matter most if we could solve them.

Is “mass misunderstanding” just an unfortunate by-product of an inherently complex world clashing with the inevitable limitations of human nature, or is it a conscious policy and a deliberate attempt to mislead and misdirect? We’re not sure, but Fed Chairman Jay Powell seemed to offer an inadvertent perspective (by accident?) during his briefing earlier this morning that at least has to get you thinking: Why all the misunderstanding? Because you have better things to do…

To diminish nothing of the very real scourges of racism, sexism, and other “isms” that affect some of us more than others (as we once talked about here), it seems there’s at least a remotely legitimate chance that some people might be trying to keep you from focusing too much on at least one particularly universal scourge (or at the very least they don’t seem to mind if your mind wanders a bit), and it’s the one scourge that at least indirectly touches and influences almost all of the others, whether we realize it or not. That, of course, would be any such scourge that denies or prevents the concept of “value” itself being related to the things you actually value.

Or, in other words – who’s in charge of the “value” of the very dollars you get paid in for your work (love or hate what you do), that you use to buy things (whether you need them or not), that you use to sell things (whether you wanted to or not), that you use in any transactions that help you pursue your own hopes and dreams (whatever they may be), and that you probably use to calculate your very own personal “net worth”, however high or low? Hint: It’s not you, it’s not your parents, it’s not your employer, it’s not your employer’s CEO, it’s probably not your “rich” neighbor, it’s probably not even just a specific race or gender (apparent correlations aside), and it’s usually not even your President (though some presidents end up having a little more influence than others). Nor is it even the God you might pray to, even if your God is Plutus or Mammon. Nope, it’s even simpler than that.

It’s a single, private, central bank.

Wondering who determines the value of your life savings if you saved it in dollars? Them. Wondering who ultimately determines how much a given “need or want” – whether it a be a house, a car, a vacation (especially one you took out a loan for) – or a donation to your favorite cause – or the very food on your table – could be worth relative to your life’s work and the values you stand for? Yup, them too. Now, we’re not here to debate whether their intentions are nefarious or not (we’ll leave that to the genuine conspiracy theorists whose theories we have no way of proving or disproving on this blog). We’re just here to call attention to the fact that they are, well, central. And if something is central and you haven’t been invited to have a seat at the table (not unlike that whole “Jack vs. Zuck” thing?) that means you don’t have a say either way.

There’s an old quote attributed to Mayer Amschel Rothschild (that, admittedly, no one seems to know for sure if he actually said or not)…

“Permit me to issue and control the money of a nation, and I care not who makes its laws”

Maybe good ol’ Mayer Amschel (or at least whoever quoted him) was just trying to make a point? You know, just a little 18th-century snark?

In any case, it doesn’t seem like we’ve learned much since then. And it doesn’t sound like our friend Jay Powell is particularly interested in seeing us start now.

All the while, arguments like #DemocratsTheEnemyWithin vs. #RepublicansAreDestroyingAmerica keep getting more attention than things like #debt vs. #savings, #SoundMoney vs. #UBI, and other things that actually matter.

It’s ALWAYS about the economy, stupid. Especially when you realize that most of the things we fight over have to do with our ability, as individuals, to live out our values – whatever they are, and however we got them.

Or are you happy to keep sitting at the kids’ table arguing over your favorite colors while the “grownups” at the central table decide what you get to eat for dinner? (if you get to eat at all…)

Another possibility: We need more tables?


***Disclaimer***
We have quoted “Tweets” from select “Twitter Users” in this story because we thought the views & opinions expressed by those “Twitter Users” were relevant to the topics being discussed in this story. These “Twitter Users” have no affiliation with the Economorals blog, and we make no assumptions about any particular political, religious, or other affiliations of any kind that may or may not be held by any of the “Twitter Users” quoted, nor the specific validity or credibility of what they say. Again, we just thought a few “Twitter Users” had some genuinely interesting words & ideas to share in the context of this story’s main themes, and since they’ve already shared those words & ideas in the public domain, we wanted to share them again here too. Because if there’s one “market” we can all hopefully agree on, it’s the “marketplace of ideas”.

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The kids are angry because they’re not getting “value” – are any of us?

We knew the college kids were angry, but as Bob Van Voris and Janet Lorin described in their recent piece for Bloomberg, we could be in for yet a whole new round of conversations about how we “value” things.

In this case, it’s the value of that good ol’ college education – you know, the one everyone’s been demanding student loan forgiveness on in recent years as it was.

But, as the kids are debating the “value” of their experiences in the face of the COVID-19 pandemic, let’s not forget, also, that a big part of the reason those tuition bills were able to reach numbers like “$70,000/year” in the first place (all the “value” they were bringing notwithstanding) – well, you guessed it – #moredebt.

Not unlike in the case of the housing market and other types of assets over the past two decades, when monetary policy remains loose, interest rates remain near zero, and #QE rules the day, it’s easy to convince everyone they should take on #moredebt because low interest rates! And “because low interest rates”, the actual price (in theory, the actual value) of the asset, good, or service, can be artificially inflated to no real end (as can the profits that flow to the owners of said assets and those who benefit from the production of said goods & services – whether they be real estate speculators, bailed-out corporations and private equity firms, or tenured college professors & administrators…)

Now, we’re all for profits flowing to those who create genuine value in our economy & society – as best determined by the exchange of value someone is willing to offer for whatever it is they want in return. The problem is, whenever the fuzzy math of #moredebt is involved, that means your values are most likely not being considered… (especially if you were someone who played by the rules, worked hard, saved money, sacrificed time, and hoped to be able to exchange the value of your hard work & sacrifice for something of genuine sound value to you in return…)

Bloomberg: Angry Undergrads Are Suing Colleges for Billions in Refunds

https://www.bloomberg.com/news/articles/2020-05-01/angry-undergrads-studying-online-sue-for-billions-in-refunds

“To justify annual prices that can top $70,000 a year, colleges have long advertised their on-campus experience…”

What students are saying:

“I am missing out on everything that Drexel’s campus has to offer”

“…making claims of “unjust enrichment,” arguing that it’s unfair for the schools to profit from services they didn’t provide.”

“…seeking compensation for what is known as “diminution of value,” or the difference between the worth of an on-campus education and one delivered online.”

What colleges are saying:

“…called the suit against it “misdirected and wholly without merit.”

“…the crisis hasn’t changed the “core value” of its education.”

We’ll anxiously stay tuned to see how this particular series of battles plays out.

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A gut-check on values with Chris Cuomo.

A silver lining of being stricken with COVID-19, it seems, is an opportunity to take a step back and re-evaluate those “bigger questions” – you know, the ones whose answers we tend to take for granted. Whatever your politics (or whatever your opinion of Chris Cuomo’s) the man brings up some of our favorite points below – whether he intended to or not.

While the recent actions of the Fed might force him to re-think that last part about his “saved money”, all other things being equal (if only), we couldn’t agree with him more.

Of course, it all comes down to values.

Cuomo for next Fed chair? Or Treasury secretary, maybe?

NY Post: Coronavirus-stricken Chris Cuomo trashes CNN gig during radio show meltdown

https://nypost.com/2020/04/13/chris-cuomo-trashes-cnn-gig-during-covid-19-meltdown/

“I don’t want to spend my time doing things that I don’t think are valuable enough to me personally,” Cuomo said. “I don’t value indulging irrationality, hyper-partisanship.”

“I’m basically being perceived as successful in a system that I don’t value,” he continued. “I’m seen as being good at being on TV and advocating for different positions … but I don’t know if I value those things, certainly not as much as I value being able to live my life on my own terms.”

“That matters to me more than making millions of dollars a year … because I’ve saved my money and I don’t need it anymore,” he said.

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