The most wondrous thing that financial markets could treat us to is the possibility that Tesla today should not be worth $50 billion dollars, but 10x to 20x that. This would take it then to a valuation of $500 billion dollars to $1 trillion dollars. Which would not only make it the largest company in the World today, but the approximate value would see it be that of the size of 1 year of Russia’s economic output measured in Dollars. In that case, if Russia would be willing to sell its entire country for 1 year, which would include its vast natural resources of minerals, fresh water, and arable land then that could be exchanged for Tesla today.
But there are two reasons why this possibility ought to make perfect sense. We live in a financial economy where at the push of an electronic button the Federal Reserve out of thin air can create $1 trillion dollars so what is an another trillion if say it needed to save the world by expropriating the savings of the ignorant while it basks in the language of bankers. After all, a trillion dollars to Tesla would be a trifling sum when it comes to saving the Earth since Al Gore reckons the grand figure for salvation is $15 trillion. But all that is the diversion.
The second reason this, the $1 trillion valuation of Tesla, shouldn’t be a problem is one in regards to greater historical context. See Elon Musk, and Tesla, are a manifestation of the con artist that have been allowed to roam free since Reagan sided with the corporate elites with the market-friendly but certifiable bull chit Laffer Curve that confirmed to a young David Stockman that he, the 40th president, was a moron.
So what happened after Reagan started gutting the attraction of civic duty and service in the form of a firm state when it comes to the rise of the conman that pervades American society? How about this list in the 1980’s. Ivan Boesky and Michael Milken both became late 80’s poster boys for normalized bad banking behavior in the greater back drop of the Savings and Loans crises that saw over 1,000 banks fail.
Ten years after Reagans last year of service in 1988, and with his Fed appointee Alan Greenspan still in on the racket in 1998, Long Term Capital Management lost almost 5 billion dollars in 4 months, or approximately $8 billion dollars in 2017 money. This, in turn, forced coordinated efforts of the major wall street banking cartel hand in the form of a discreet bailout. All that had done though was signal a warning that risk was out of control as 2 years later the Nasdaq bubble popped , destroying trillions in savings, even as the corporate CEO’s spent earnings hand over fist buying back their stock at insane prices so that they could cash out their stock options. With that fallout came the market’s exposure of Enron and WorldCom which to uncovered that fraud was institutionalized in seemingly the most reputable firms in the economy. Enron was the biggest energy trader in America lets not forget, and its CEO, Kennith Lay was asking for some of the global warming carbon credit trading bonanza that climate change action supposedly necessitated just like Elon Musk has been hankering for. WorldCom at one time was the second largest telecommunications company in the world in 2002 when its $107 billion dollar asset valuation was insufficient to prevent it from collapsing.
Of-course, all that was just a prelude for the setup for 2008 as the unregulated banks and pseudo-banks (every entity) manipulated everything from LIBOR, natural gas, crude, gold, mortgages to setup the collapse of the unfettered Ponzi Scheme of levered credit that the central banks are too mortified to let unwind. But unwind it must, the current central banks just don’t want it to happen on their watch. After-all, who wants to be held responsible for the coming default of the United States since that is, of course, the only thing left to happen, since, in a sense, it already has. In other words, running $500 billion to $1 trillion dollars of deficits everywhere with growth under 2% to 3% and tax rate below 50 to 60 to percent is mathematically untenable when the retirement glut of the baby boomers outnumber the generation that will be required to support them.
In other words, the conman that is Elon Musk , and the monopolist banks with all their tricks that have been done before by the likes of Bernie Madoff, can only extend and pretend and offer diversions. Which is what the Tesla Semi Truck, Tesla Autonomous car, neural lace and self landing rockets represent. All of that hides the fact that Musk quietly hoodwinked investors and co-opted the SEC and the Whitehouse to quietly protect Solar City from defaulting. His scheming with the government has prevented the regulatory bodies from banning his semi-autonomous cars that are the certifiably mortal danger to drivers. The biggest shame of all of this is the shorts and the skeptics made it so easy for him, in that it was so obvious, they fell right into the honey trap of negative shares through the outright manipulation of the options market that Musk and his cronies and big bankers were able to pull off. None of this is difficult to understand because it has already been done and the rest is just a matter of reading between the lines or just taking Musk apparent imperial animosity to those who doubt his con.
But all this juicy history will make the fall even that much of a theater. Supposing though that truth is a woman, it is not to say that calling and unmasking Elon Musk is good or bad, but that it is difficult. Musk, which I might have had an emotional response to as being evil, as I have felt, is not that either. What he and his scam are is difficult. It is difficult because Musk co-opted the government and is representative of government policy which therefore makes it questionable to speak out against without admitting this. To the same token, I argue government policy has been a failure, and the symmetry of a United States oligarchy that turns into a despotic autocracy lead by conmen that eventually defaults on itself is all too perfect.