Where's the beef?

How strong an equivalence exists between historic Eurasian states and the US in terms of the cost-benefit of national identification? No Eurasian state has so ambiguous a cultural coherence or short shared identity. No state has so polarized its economic classes. No G7 state is spending a vast percent of it's citizens wealth and blood on obsolete, bloated arms programs and arrogant bullying of others, making its citizens involuntary pariahs in much of the world. No state has private foreign-owned contractors spying on its own citizens' every breath, even from space. And now we are to become paupers at the hands of the scions of this same state? Surely the assumption of automatic loyalty of diverse, relatively recent members of this vast continental aggregation, as the Palins clearly illustrate, at some point has to fray. At what exactly does our state excel? Education? Health care? Industrial success? Transportation? Housing? Employment security? Cultural harmony? Leisure time? Or just making a few clever sociopaths incredibly rich? Where is the beef?

Intrinsic Value: Cars and Houses Compared

In the seminal book "The Rise and Fall of the Great Powers", Paul Kennedy argues persuasively that empires eventually return to an equilibrium consistent with their original geography as a percentage of world resources. This is an example of the concept of intrinsic value, which, for nation states, must be viewed over a long historical period. In the current economic crisis, one of the values that has influenced markets negatively is American residential real estate. A bubble was constructed upon the perceived value of a single-family home that is dramatically inconsistent with its intrinsic value. Just as great power empires flourish during "perfect storms" of unique, complimentary conditions and then collapse when those conditions change, energy intensive, consumer intensive, debt based family housing must also reach an equilibrium consistent with its intrinsic value as personal shelter in general context of human creative endeavor.

What's lacking in the discussion of our economy presently is recognition or disclosure that this valuation of resources and debt is no longer reflective of global conditions. Just as one can very cheaply acquire large displacement American luxury automobiles of a few years vintage because the intrinsic value of the car is transportation, and transportation requires fuel but does not require a faux-opulent, planned obsolete personal vehicle, the financial system is now foreclosing and holding title to large quantities of the shelter equivalent of an American gas guzzling rolling boat. Detached houses offer the illusion of the life of a potentate: swimming pools and vast grounds tended by servants, tens of thousands of square feet of air conditioned and heated rooms to house just a few people, and ample storage for mountains of Chinese consumer goods, machinery, sports equipment, multimedia rooms, and multiple trucks, cars, motorcycles, and other fuel intensive, and depreciating machinery bought on credit. The very model of a consuming liability rather than a productive asset--a nod to Robert Kayosaki here--once the arc of its speculative appreciation peaks. (As a former remodeler, as an aside, I have replaced many a sound, tradesman-crafted kitchen or bath with its Home Depot Chinese factory equivalent over the years and called it "improvement".)

A look in Trade Express is all that is necessary to understand the value of an Oldsmobile in a world in which Prius is the desired vehicle.  When downsizing of space and energy use for shelter is the priority, the same phenomenon of drastic devaluation applies to these bloated, "gas guzzling" American houses.

Election Commentary by Caroll Quigly

How strong an equivalence exists between historic Eurasian states and the US in terms of the cost-benefit of national identification? No Eurasian state has so ambiguous a cultural coherence or short shared identity. No state has so polarized its economic classes. No G7 state is spending a vast percent of it's citizens' wealth and blood on obsolete, bloated arms programs and arrogant bullying of others, making its citizens involuntary pariahs in much of the world. No state has private foreign-owned contractors spying on its own citizens' every breath, even from space. And now we are to become paupers at the hands of the scions of this same state? Surely the assumption of automatic loyalty of diverse, relatively recent members of this vast continental aggregation, as the Palins clearly illustrate, at some point has to fray. At what exactly does our state excel? Education? Health care? Industrial success? Transportation? Housing? Employment security? Cultural harmony? Leisure time? Or just making a few clever sociopaths incredibly rich? Where is the beef?