Fear and the Fetish

(Debt Dependency)

In the world of finance, fear is a commodity. Arbitrage arguments are formulated utilizing the fear index, which is called the VIX (the Volatility Index, which is a space over time measure, associated with the velocity of change). Speculating the VIX associates with determining the risk-default premium, and the reason it is so important is because the global economy is debtor dependent.

(Remember, price volatility means that the value of a thing–a commodity–is arguably ambivalent. Like Objectivists say, what something is really worth is a relative value. It is arbitrary–yielding to an arbitrage argument, obsessed with measuring what the risk actually is, at any particular time, which is based on its probable future existence.

Remember, as well, what Congressman Levin said about the hedge-effect during hearings on big-bank risk in ’09. Trying to hedge the effect–probable future value–determines the value to be hedged. It is more like a racketeering scheme, disguised as a better-and-brighter way to do things, than a means of actually avoiding the risk of default, which it did not do, and Sanders correctly says it will not do, intentionally!)

Default on the debt is a moral hazard. It can quickly spread in a TBTF proportion, creating a dependency that commands extreme coercive power, naturally demanding regulatory authority.

Regulating command authority is what the American Revolution was about, and today it is “the revolution” Sanders says is naturally emergent on demand.

Regulatory authority exists with a moral measure.

Like fear, morality seems unmeasurable because it is such a relative value. Nevertheless, the authority to regulate, like fear, forms an arbitrage argument with an on-demand dimension, and capitalists are completely obsessed with it, commoditizing the risk in the form of fearing the regulators. It is a full-blown commodity fetish, complete with a religious-like hieratic culture, paying proper tribute (sacrificing) to the “job creators” who create the value that actually pays the debt, to which “We” (including “the creators”) are naturally dependent.

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About griffithlighton

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