When Senator Warren and others pushed through lowering student-loan rates, the lower Fed Funds rate was made available only to new loans.
What is the benefit of keeping a massive debt bonded to the higher rate?
Warren, and other Americans for democracy, see fit to desist the old, student-loan contract at the fixed rate. For big bankers, however, keeping debtors bonded to the higher rate against the falling Fed-Funds rate (which is an arbitrage argument that consolidates wealth and power, on demand, supposedly, because no one forced people to take-on massive debt) is the social contract. Like Lloyd Blankfein says, maintaining contractual obligation is the very fabric of society…it is what controls the crowd, utilizing the Iron Law, forging order from chaos.
Being bonded to debt out of necessity (to demand the supply) is another means of slavery, and being against slavery does not make you a communist. Are Republicans, who claim the identity of Lincoln, communists?
Maintaining the implied social contract that exists out of necessity (the “objective reality” Objectivists refer to) requires an accumulating, debt-to-equity proportion that conservatives say is the debtors bad choice. Existing on demand (out of necessity), the “bad choice” resists the declining rate of profit, however, and exists the collaboration (the union) of the collective commons.
The resistance yields to the existence, which is an “objective reality” (a “natural identity,” design or purpose) conservatives cannot avoid by attainment of their own devices.
By natural design, the risk being avoided obtains, existing measure (collective collaboration) and resisting nothing (at zero marginal cost). Despite the positive law (the doctrine) of limited liability, the liability naturally exists the measure of “l’inexistence” whether the corporate body likes it or not.
Commanding the common collaborative is a measurable inexistence (being and nothingness) getting progressively closer to the object of NOW, converging with “objective reality” by natural design.
While the pathologues may believe, or at least want us all to believe, that they rule by natural identity, nature does, in fact, command the collaborative commons (rulers and ruled), by design, on demand.
It’s the Iron Law.