Accidentally on Purpose

Capitalists are masters of causing the risk to be avoided. They call this risk management.

It is important to understand that causing the risk to be avoided has a divine-like attribution. By causing risk to occur, capitalists are, in effect, masters of destiny.

Capitalists do not create risk. It is a given quantity, but they can attribute its value. They can give it a Transactional Interpretation that defines a mechanical process, which is described as naturally endowed and not subject to change, like a natural law. Objectivists call this “natural identity” and “objective reality.”

Not actually being subject to change means that the risk-value (the distribution of rewards associated with the risk) cannot really be changed. If we do (and offend the gods–the “job creators”) the risk (and the value that correlates with it) conserves, anyway, retributing (like Ayn Rand said) to its rightful ownership (its natural identity).

Although many conservatives do not admit being Objectivists, they subscribe to the natural-identity philosophy, nevertheless.

The natural-identity argument is cynically described as “Wall Street arrogance.” Conservatives react to that, saying it is a misattribution (the wrong interpretation) of objective reality. What appear to be problems created by capitalism, like extreme income inequality and distribution of wealth, derive from fundamental attribution error (the bad interpretation).

The mechanical process (the ritual) is mistaken for greedy arrogance, conservatives explain. Destiny (self-determination) is really a function of our natural existence.

As Objectivists describe it, despite all the effort to transform it, the natural mechanics that determine destiny is maintained. Since objective reality is open-ended, having no real purpose, the elite naturally cause the purpose (its value is emergent), and that is not going to change, is it?

The current emergent value is the big short in the bond market. (If you recall, I was telling you about that about a year ago, describing what it means for “fixers” to be doing price-spreads instead of yield-spreads.) Now that risky, high-yield assets are under pressure, the detriment is destined to be realized by default, accidentally on purpose, of course.


About griffithlighton

musician-composer, artist, writer, philosopher and political economist (M.A.)
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