Trump’s attack on Iran is proving conclusively that the US can’t run an empire with neoliberalism as the operating system. The evidence mounts every day, from inability to manufacture more than a few precision munitions, to fragile supply chains, to private equity vampires seizing essential infrastructures, to tech-bros proposing to privatize the Pentagon.

Rogue economist Michael Hudson says that the US economy is essentially a Ponzi scheme, where private equity sharpies take over companies and make money by essentially looting them. “After the Wall Street crash in 2008 when Obama bailed out the banks, and the Fed drove interest rates to zero, telling the banks that we are providing you funds at 0.1%, to lend out to the economy. But banks don’t provide money that way, banks lend money for assets, real estate, stocks, and bonds, already issued, already in existence. Bank credit isn’t extended, in the United States or Britain, to finance industrial capital investment. That’s the job of the stock market, if anything, or of companies to reinvest their earnings. Instead, banks lend money out to intermediaries, saying, ‘“You do the job; you find the companies to take over”’. Hence the explosion of private equity as intermediators.”
Unfortunately, private equity has proceeded to bankrupt whole swaths of the American economy by cutting back the quality of what companies were doing, slashing expenses, working labor harder, making them work overtime and cutting quality.
You, dear citizen, might have noticed some of the malign effects, and it’s fitting that Cory Doctorow coined the phrase enshittification to describe late-stage neoliberal capitalism, where the whole purpose has been to make the elite fabulously wealthy while fucking the rest of us.

Meanwhile, as Hudson details, “this predatory financial system was making so many gains for the companies that were financialized and using their profits not to invest in new capital formation and new factories and means of production; all of that was done abroad; it was sent to China and other Asian countries.”
What’s ironic is that US military planners appear unaware of such developments as they plan to attack China after the neoliberals transferred US manufacturing there.
Where to start?
The financial class, along with the emerging techno-fascist elite have acted to take over government as part of their looting operations. It has resulted in the privatization of sovereignty. When Palantir proposes to assume the governmental role of predicting, surveilling, targeting and murdering, while releasing a techno-fascist tract arguing for an end of democracy and embrace of a Sparta ideal, we’ve entered a new paradigm. The ability to wield lethal force has been the bedrock of statecraft since Hobb’s Leviathan.

Palantir co-owner Alex Karp has recently produced a badly written manifesto that goes a long way to explain why it’s impossible to run an empire on neoliberalism. Even as they loot the republic they exhort the commoners to sacrifice for the greater good, and if they won’t, they propose a draft.
Ancient rulers understood that for an empire to prosper the commoners must be kept solvent–hence the debt jubilee–where the king would cancel debts periodically so that he had soldiers instead of serfs. This behavior wasn’t sentimental but practical. Citizens in desperate straights and miserable are hardly the sort who can defend the far reaches of an empire. Contrast that with Americans who are up to their eyeballs in debt, while the Trump Administration is carrying out savage cuts in social and supplemental food programs, and proposing to cut daycare for members of the military.
The stupid, it burns.
Update: The US spends upwards of a trillion dollars a year on what they laughably call defense but this is the chow our sailors are subsisting on.
“Images obtained by USA Today of poor-quality meals being served to U.S. service personnel in the Iran war have sparked alarm.

The images have highlighted concerns about the welfare of service members and the food being served to them while they are deployed, with the official account for the Democrats on social media dubbing the pictures “disgraceful.”’
I wonder where all that money went?




























