Waste Based Society II: Vendor Financing & Planned Obsolescence
Why do we run a Waste Based Economy (WBE)? It seems illogical on the surface, but there is a fundamental reason for it.
The reason is this: In a Conservation Based Economy, nobody gets OUTRAGEOUSLY rich!
In this post I am going to move away from the Glass Bottles and Jars to the most glaring example of waste we have been engaged in for the last century or so since the first Model Ts rolled off Henry Ford’s production line, the Automobile.
Let’s begin with the Car itself. Marvelous invention it was, the Horseless Carriage. Put a lot of Horses out of work of course, but they were quickly recycled as Dog Food. With Gas priced cheaper than Oats and one Engine capable of doing the work of a Hundred Horses or more, nobody is going to stick with Horses except some really stubborn Amish who don’t even shave!
So everybody enamored of progress and who ALSO wishes to actually SURVIVE in this new world of the Horseless Carriage wants one. You can’t compete if you have a Horse and Buggy and the next J6P has a Car and can get to the Jobsite faster than you can. If you are a Farmer, you can’t produce as much food as cheaply as the guy running a Tractor with your Team of Oxen. If you don’t get one of these New Fangled inventions, you are gonna be outta biz in no time, your farm Repoed and on your way to California to pick the Grapes of Wrath with the rest of your Okie buddies.
Your problem here is, you don’t have MONEY to buy one of these fancy new Tractors. No problem here of course, the Kindly Banksters who financed the Tractor Factory will ALSO finance you to buy one of these Tractors! POOF, lots of New Money is floating around here because massive loans have been made to Industry to gear up, and massive loans are made in aggregate to J6P to buy the products of that industry.
This seems GREAT at the beginning, but the problem here is that it cost a shit load of this new Money to build the Tractor and Car Factories, but unless they KEEP selling more of these cool inventions they won’t be able to pay off the 30 year Mortgage they took out to set the factory up.
Because the Production Line Henry Ford set up so efficiently produces GOBS of these new Carz and Tractorz, the market gets saturated pretty quickly. Everybody with a decent Credit rating buys the first ones off the line. These things are OVERBUILT for the most part and will last for YEARS, even Decades if well maintained. At the beginning also, they are simple enough in their design and construction that a handy sort of fellow can do all the maintenance on them himself. A decade down the line, you have all the guys you originally sold Carz and Tractorz to STILL using them! You can’t sell them a New One unless you make some truly revolutionary change that makes a new one way more efficient and better than the old one. Even then, unless the old one breaks down, its a pretty hard sell.
So at this point a few strategies are undertaken to keep selling Tractorz and Carz. First off you get your R&D departments where they do make some real improvements for a while, but these generally hit a plateau. Next you hit on Fashion and Comfort ad promote with Advertising. The NEW Carz/Tractorz have more comfortable seats and real SLEEK Lines. If you have the NEWEST John Deere Tractor, out there in the Corn Field it looks like something out of a Jules Verne Novel! Its a Farmer’s Rocket Ship! Farmer’s unlike Car Buyers though generally aren’t suckered by this stuff, if their Combine works, it works. It doesn’t need to look good, rust is OK if it is still working.
In the final stage, Planned Obsolescence and making the stuff so complicated nobody can fix it (not even “professionals”) means every one of these Big Ticket items which you take a 10 year Loan out on to buy generally only lasts 7 or 8 before you need to buy a New One.
If John Deere or any other manufacturer of Industrial Goods really sets themselves toward producing durable goods that last longer than the typical debt cycle of 10-30 years, they will put themselves out of Bizness in no time. The only way to KEEP SELLING is to keep expanding into New Markets and offering more Vendor Financig to each new market to buy your stuff. Which of course is what they kept on doing right up until they saturated the whole Global Market with the stuff and there actually are probably more perfectly serviceable engines and other parts sitting in Junkyards than there are new ones beig produced in China.
As the whole economy of selling this stuff slows down, Da Goobermint tries strategies like Cash for Clunkers to ENCOURAGE people to trash their old and still serviceable Carz for new even less durable Volts, which is gonna need a new Battery Pack probably in 5 years or less. A few people buy into this idea, but overall the number of people with a viable Credit rating to offer them Credit to buy a new Chevy Volt isn’t enough to justify the Production Line, and these folks keep driving their 20 year old Mazda MPVs.
Transfer this whole idea from this side of the Pond over to Krautland and it’s Client states of the PIIGS. Every time I read one of the MANY articles where Krauts are lauded as beig so “Industrious” and their client state Citizens “Lazy”, as was the case in a recent Der Spiegel Op-Ed, I want to Heave the Technicolor Yawn. The imbalance here has little to do with inherent qualities of “Industriousness” in Krauts and “Laziness” in Wops. The imbalance comes from roughly 70 years of Vendor Financing done by the Krauts to sell their Mercedes and BMWs to the rest of the Eurotrash in the aftermath of WWII. The Marshall Plan neatly rebuilt Kraut Industry at little cost to the Krauts, and then they proceeded to lever up on that by selling their Industrial Goods to all their neighbors. Kraut Banks made Big Profits and so did Kraut Industry. The Krauts REALLY got going well once they sold the Euro Currecy to their client states also, now they had a captive market that all had to use the Money they created through Loans. Sound Familiar? It is precisely what the Rockefellers did early on with the Dollar to sell their Oil to a captive market.
Which brings us back around here now to the original thesis of this argument, which is that you cannot get Outrageously Rich in a Conservation based economy. See , early on here John D. Rockefeller gained Monopoly over just about all Oil production and Distribution in the FSofA, but unless he could get everyone HOOKED on Oil and wanting to buy it from him using Debt Money he himself also created, he doesn’t get Richer that God. He has control over/owns all the Oil in the World, but if people don’t use it, waste it etc, it just sits in the ground and he doesn’t get RtG.
The way in which the .01% really got RtG here was through Commerce, and conserving the Energy or producing really Durable goods does not do that. The faster they get people to Consume it; the shorter the lifespan of anything you buy is; the richer they get. Since they control the Resources, the Monetary system AND the Political system, you got no choice in this, you get the Industrial culture they build to make themselves RtG.
The problem faced by these folks now is that basically they have nothing left to sell at a price anybody can afford to buy, even if somebody would Vendor Finance the buyers and nobody will now. All the OLD loans are already going south here and the Oil has become too scarce and valuable to offer up at Low, Low Prices Every Day on the Walmart shelves. Because of course that is what everything Walmart is selling really IS, it is all just OIL, transmuted into various Konsumer goods and Food, but still Oil in the end here.
So, the Monetary system being run is collapsing on itself as we speak, but the Power Structures developed over the Millenia have not yet collapsed. By shoving Austerity on the Debtor countries, the Illuminati continue to sieve the last of the remaining wealth out of all these places. In the end though, all they Repo here is basically worthless flotsam and jetsam of the Age of Oil, and once they can no longer support the Big Ass Military, they will be quite done here.
When they are done, it remains incumbent on those who do survive the Zero Point to set up a BETTER system than this, one based not on Consumption of Resource, but of Conservation of it. In such a system, nobody gets Richer than God, but its the only way for Homo Sapiens to continue onward with the Great Experiment of Human Sentience. In time, I believe we will achieve this goal, but not without much Pain and much Death in the intervening period. Through this time of Great Dieing, I remain convinced the only way to insure a Clean Kitchen in the aftermath is to make sure the Vermin are Extermintated FIRST here.
Bring on the Orkin Man.