Brilliant essay by Julius Krein.…
"Perhaps the clearest understanding of the U.S. economy is found in China, where officials and the media speak directly about America’s increasing dependence on high asset valuations, as opposed to growth in the real economy."
"Cold wars are led by states, and the U.S. state is subordinate to an oli­garchy. This class is reliant on China - for contract manufacturing, and to maintain high asset values.... To confront China, the U.S. state would first have to gain supremacy over the oligarchs."
The implication of Julius Krein's essay is that there is no way to govern without a massive stock market crash, because only such a crash would sever the veto that oligarchs have over political choices.
We've had multiple chances at a reset. 9/11, the financial crisis, the pandemic shock... every time the Minsky moment hits voters are too disorganized and elites are scared, so we continue the bailouts and increase fragility and weaken governance.

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More from @matthewstoller

11 Oct
I can’t decide what I want most. Image
I love coloring books! ImageImageImageImage
It’s total bullshit that the Pelosi doll comes with a mask and the AOC doll doesn’t. ImageImage
Read 4 tweets
9 Oct
In fact Democrats always do this. They poll and run ads on whatever polls highest. In 2010 they all ran ads bashing Wall Street and they got pasted even though everyone hated Wall Street.

You can't not deliver what you promised and continue to be heard. People will tune you out.
Biden promised to deal with Covid and return us to normalcy. Instead he's procrastinating and refusing to pick among factions in the White House. Dems can talk about whatever they want but voters can see they aren't getting what they were promised.
This isn't some sort of ideological factional problem either. The left, center, moderates, whatever, none of them actually seem to get that you have to deliver on governance. No one paid attention to the rental assistance getting out the door.
Read 4 tweets
6 Oct
Nominating hearing for (among others) Biden antitrust pick Jonathan Kanter.…
Also a hearing for Lucy Koh to be on the ninth circuit. Koh is great on antitrust.
Now Tom Cotton is pressing Koh about FTC vs Qualcomm, and attacking her decision finding that Qualcomm was a monopoly. Koh responds by justifying her decision on standard essential patent licensing. Her decision was 100% correct, the ninth circuit was wrong to overturn her.
Read 15 tweets
29 Sep
Hearing on nitty gritty laws that allow pharmaceutical firms to keep prices high via anti-competitive practices.…
These members don't understand product hopping. The scheme is that when a doctor writes a prescription, a branded drug can only be substituted with an identical generic that’s the same dosage form. The new product intentionally screws that equivalence up.
So @DarrellIssa @RepDanBishop et al understand non-drug patents, but Hatch-Waxman creates a special drug patent process to move to generics. They are right the FDA and patent office should stop allowing all sorts of nonsense patents though.
Read 6 tweets
27 Sep
"Public opinion polling found majorities, ranging from 54 percent of Poles to 83 percent of Austrians, affirming that if there were a conflict between the United States and China, they would choose to actively support neither."

This is not an alliance.…
Europe has no effective military forces, they don't want to align with the U.S. economically, they aren't poor and threatened by Soviet armies. What's the rationale for the U.S. committing resources to European defense?
The current relationship between the U.S. and Europe is dysfunctional. By shielding Europe militarily and economically, the U.S. incentivizes Europe to under-project power, which is as dangerous as over-projecting it.
Read 4 tweets
26 Sep
The Villains Behind Our Medical Supply Shortages…
It's been 18 months since the pandemic started. Why are we *still experiencing* shortages in basic medical supplies? Look at a series of monopoly middlemen in hospital buying for the answer.…
The shortage problem in health care wasn't caused by Covid. Medical personnel have been seeing shortages for years. Here's one reader.… Image
Read 4 tweets

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