When capital flees conditions it does not like, it will find a conduit, often with the support of govt and their cronies – at least if the money is flowing in. While broke govt’s will impose liberty-killing laws (capital controls) if people try to take their money out of the country, if money is coming into a country, the govt assists or looks the other way – when money is from Illicit Financial Flows (IFFs).
Just as many citizens do not fully appreciate the NSA data gathering of all of their PERSONAL information (believing they have nothing to hide), they also may not understand the full cost of our govt permitting their bankster donors from laundering money for drug cartels or funneling money from Oligarchs around the world into US real estate.
The consequences of the NSA’s unconstitutional data gathering, sold as fighting terrorism versus the true reason of finding and confiscating money for govt, is that capital will ultimately flee the intrusively-corrupt and
The consequence of felonious financial flows into the US is that it artificially inflates asset prices, and when combined with the normal flight of capital from troubled regions around the world, it extends normal business cycles into devastating bubbles. While it may temporarily increase the paper wealth of those invested in the assets, it makes real estate/rents unaffordable for the majority and misallocates capital into paper assets with no intrinsic benefits.
For example, banks are not lending money for businesses to form and grow, because the speculation in bubble-blowing assets with leveraged cheap money is much more profitable – especially when bad investment decisions get either a tax-payer bailout or depositor bail-in (actions that were facilitated by rescinding Glass-Steagall and authorized by CONgress).
There are many reasons for the cyclical decline in morals, ethics, and the unequal enforcement of the law that always proceeds major economic declines (because capital seeks the opposite traits). However, there is no one to blame but ourselves. The voting public ignores, condones, or rationalizes obvious transgressions like Clinton-Lewinsky, or the more recent Brady/inflate-gate and Clinton-cash slush fund.
Some may mistakenly think that the personal wrongdoings of politicians and celebrities have no influence on the moral compass of a society, but no one can argue that the selling of the State Dept to the highest bidder has implications far beyond what should be obvious. The State Dept’s recent dissing of the American public, by refusing to investigate more than 1100 undisclosed donors to the Clinton Foundation Slush Fund (CFSF), is a horrible warning of what’s to come.
As Armstrong reminds us, there comes a time when we must stand up. If politicians find it impossible to be stand-up characters, it is incumbent upon the citizenry to put their feet to the fire, and remind them that not only does Karma never lose an address, but as Thomas Jefferson said, the tree of liberty must be refreshed from time to time …