People respond to incentives - new reality leads to breakage of fine social tissue

This is what I've got from the Internet on this phrase:

·       Incentive is something that induces a person to act [by offering rewards to people who change their behavior].

·       Because rational people make decisions by comparing costs and benefits, they respond to incentives.

·       Incentives may possess a negative or positive intention.

When the unrest in the USA and western countries fades away rational people will have to respond to numerous negative and positive intentions and to make many existential decisions:

- to reduce the risk of degraded personal and family safety;

- to reassess the short and long-term forecast of property the price due to geographical location and neighbors;

- to reassess the risks to business/job market;

- to reduce the risk to savings;

-  to provide conditions for better education and communication to children;

- many others

Considering the fact that the new unrest and related negative incentives are highly likely in the months and years to come I would not be so sure that the social stratification and self- and group-isolation due to racial/political reasons (which is the main driving force of the current unrest) will fade away.

Time of financial marauders

At the beginning of June 2020, the total US market capitalization was around 150% of the nominal US GDP. This level is close to the top 160% in February 2020. And it is a big surprise to almost all laypeople and professionals considering the pandemic and sudden drop in employment and GDP.  One clear explanation is that the Federal Reserve money may go only into the stock market because the real economic segment did not ask for such a tremendous amount of credits since 2008. The Fed's monies found their liquid way to the stock market - the only working mechanism of formal profit. The whole ocean of liquid assets brings some profit as the stock market grows. The Fed's money is credit money, however, which the debtors have to pay back at some point. When this time comes, the stocks have to be sold and ... Well, is it actually possible to sell stocks for 6-10 trillion dollars? When someone starts to sell the first portion of, say, one trillion, the stock market falls.

This market fall will be enhanced by the worldwide spreading COVID-19 pandemic wave, growing problems in the real economy (the USA and global), the LBM protests also conquering the US and other western societies, and the US presidential elections in November. All in all, this looks like a perfect storm approaching. All the stresses cumulate and create conditions most expected by financial marauders - the whole bulk of extra Fed money will disappear (as a soap bubble) and the first who start to sell stocks will get the largest part of cash. The bank will get extra money from the Feds - too large to fall. The poor small investors will lose everything. As always.

And as always, the marauders are the largest investors and banks (Long live to BlackRock!) 
I am in cash and worry about the risks for the banks where the electric signals representing my money  reside.  

Second COVID-19 wave in Austria?

Yesterday, June 5, there were 60 new COVID-19 cases in Austria. This number is similar to 58 new cases on March 10, just before the first lockdown was announced. Statistics for today will be reported tomorrow and we might be running into the second lockdown if there will be above 100 new cases, as was on March 11. 

Hollyfake

Hollywood gave us movie stars protecting everything that matters. Where are these stars now? Reality does not comply with movies - the movie starts are the fake stars and Hollywood is actually Hollyfake. Of course, this is obvious and does not deserve another mention, just disappointment when this fake dream factory announced restart.

Police officers are not robots

I was trying to apply the liberal approach to human (and not only)  beings  with basic rules of freedom and fairness (as per Haidt) to police work. And found no reason for police officers to protect other people based on fairness to the police officers (they are expected to be violent to other people) and freedom of their ultimate choice to protect themselves. Now I understand that liberals consider police officers as robots with The Three Laws invented by Isaac Asimov back in the 1940s. However, police officers are not robots and, considering the liberal approach (i.e. no authority, no loyalty, no sanctity) they have to follow the opposite rules:

First  Law

A police officer must protect only own existence, also for the sake of people who love them.

     

     Second Law

A police officer must obey the orders given by the immediate commander only (not by any other human beings) except where such orders would conflict with the First Law.

Third Law

A police officer may not injure a human being or, through inaction, allow a human being to come to harm except where such orders would conflict with the First or Second Law.

I think the Buffalo police officers who left special team observe these three rules and showed their protest  to be considered as robots following The Three Laws. This gives me some optimism about what will happen in the US after the current unrest and protests calm down. I hope people will respect the police officers as human beings. Otherwise, the police will be fully demoralized. To protect people, the police officers have to demonstrate loyalty to the team and people, follow the authority of commanders, and believe that they may sacrifice their livers for better life for their relatives and others. Currently, the authority and society demonstrate that they consider the police officers as robots following the rules invented by Asimov.    

What frightens the most in the USA protests

US capitalism was an exemplary success for other countries for decades. It deserves all praises but we lost some frightening processes behind the polished face for the outer world.  This is the major turn from the industrial driver demanding more and more qualified labor (it took just a few decades to poison The Great Lakes for the sake of industrial growth)  to a monstrous mow quaffing everything. The US capital lost its inherent advantage of job creation because the economic efficiency is not technologically creative anymore - it is aimed at over-consumption through services. Job is not a measure of success. Now it is status consumption, which cannot cover the whole population. The US is not a country of consolidated progress - it is the country of separation and segregation. People cannot encash their capabilities to work and produce goods and services because their value-added is below the marginal cost for the most efficient capital growth. These people consciously or unconsciously go to protest since the standard democratic procedure does not work ( the last attempt was with Trump elected to return industry and lower increase the marginal cost by tariffs and so on, but the capital resistance is too strong). The current peaceful protest wave is the expression of the deepest fear in the hearts of millions lost jobs, losing jobs, or vulnerable to job loss. The US is not a good place for masters. And this conflict in the US society, which cannot be resolved in a democratic way with both parties struggle for the same consumption position not for economic progress, frightens the most. Сapitalism does not bite its own tail - it changes its skin. Nothing personal - just business.

Many people in the US are weak and worthless. They can only protest

The current protest wave in the US is driven by feelings of weakness and worthlessness. When people in democratic countries can change the status they do not like they go to elections and vote for the political power which can change their lives for better.  This is not what we see in the USA. The problem ignited fierce protests and violence has been tackled (but not solved) for centuries. It will not be resolved after this wave calms down - it cannot be resolved without political agreement on the importance to follow the recommendations of the UN (Alston) report - Report of the Special Rapporteur on Extreme Poverty and Human Rights on his mission to the United States of America. 
This protest is not a surprise and almost all countries in the world can give similar examples of weakness and worthlessness when interacting with the US.