The Futures Now

Hobbes’ theory of absolute government authority is the futures now. It is the republican form of government. Sovereign power (the right to rule) derives from the people.

Remember, F(t,T) = {(T-t)}. The time to maturity equals maturity to date, which resists the riskless return “(1+r)” compounded.

The value of the risk is conserved in the form of debt, extended into the futures to derive profits now. Once the profits are booked, it is private property, which by natural right is secured by the king.

For reactionaries, the natural utility of the aristocracy is conserved, just like it was back in ye ole days.

Government, by extension, exists to protect the right to acquire property and keep it. When that right is threatened, government naturally reacts to protect its self (the Leviathan, or the corporate body) with absolute authority. This is the “natural identity” that Ayn Rand posits and lawyers like NYCU professor, Richard Epstein argue is what it means to have limited government, but with absolute authority.

When there is a financial crisis, government naturally reacts by bailing out the aristocratic, financial elite that caused it. To regulate it, government naturally reacts with a regulatory regime that is so bloated with Ivy-League lawyers and lobbyists that “aristocratic” is the only way to describe it. Then, when the beneficiaries are sued for the detriment, the value of the risk is likely to be arbitrated by the Ivy League, especially at the highest levels on appeal.

When TBTF banks foreclosed homes to pay the rents, according to Randians, like Epstein, government’s role is limited to enforcing those contracts with absolute authority. The risk of doing so, however, is all in the futures now.

Keep in mind, the only way to enforce the contracts between TBTF banks was to bail them out. The effect, since the underlying assets being arbitraged were overvalued and overleveraged, was, and still is, expansion of the money supply without adding aggregate demand. The result is inflation and unemployment, and this colossal detriment continues to derive huge profits now from the futures. If you are a TBTF CEO, this is not a failure, it is a colossal success and you deserve a bonus.

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About griffithlighton

musician-composer, artist, writer, philosopher and political economist (M.A.)
This entry was posted in Political-Economy and Philosophy and tagged , , , , , . Bookmark the permalink.

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