Cultural Revolution in America?

Lessons From China’s Own Were you forwarded this email? [Sign-up to The Daily Reckoning here.]( [Unsubscribe]( [Daily Reckoning] Cultural Revolution in America? - “Growing inequality and polarization are rapidly consuming what's left of common ground in America”… - What unites different cultural revolutions… - The pressure cooker is getting hot… Recommended Link [Big Game Hunter! Really?]( [Read more here...]( Ever since the world’s richest man suddenly stepped down as CEO… Social media has been speculating as to why. While the man himself said he wants to pursue his other passions… Some said his passion was hunting big game from a helicopter. Some felt he stepped down to star in a movie. But one analyst is suggesting a deeper more powerful reason. It is SHOCKING. And by the looks of it, very very plausible. To know what’s bubbling beneath the surface - ready to erupt - and to see how you can take early advantage of it... [Click Here Now]( San Francisco, California April 10, 2021 Editor’s note: Americans appear to be divided more along ideological lines today than traditional class lines. Many believe the U.S. is actually undergoing a cultural revolution. Today, Charles Hugh Smith tackles the issue, using China’s Cultural Revolution as an example. [Charles Hugh Smith] Dear Reader, There is a whiff of unease in the air. Beneath the cheery veneer of free money for almost everyone, growing inequality and polarization are rapidly consuming what's left of common ground in America. Though there are many systemic differences between China and the U.S., humans in every nation are all still running Wetware 1.0. So it is instructive to consider what can be learned from China's Cultural Revolution (1966-1976) and see what applies to the U.S. today. The Cultural Revolution is not an approved topic in China today, and that alerts us to its importance. China's Cultural Revolution was remarkably different from Mao’s communist military-political victory in 1949 over the Nationalist forces of Chiang Kai-shek. The political revolution was managed by the centralized hierarchy of the Communist Party (CCP). But the Cultural Revolution quickly morphed from a movement launched by Mao into a decentralized mass movement against all elites, including Party and state elites who had been sacrosanct and untouchable. The important point here is that the Cultural Revolution was not controlled by the political authorities. They did maintain control of the Party and central government hierarchy in Beijing. But this was nothing more than an illusion of control. The Irony of Cultural Revolution The forces of the Cultural Revolution had broken free of central command and control, even as the Red Guards expressed their loyalty to Mao and the principles of the Party. But those expressions were only the politically approved cover for their rampage. That's the irony of Cultural Revolution. The authorities cannot claim it is a political counter-revolution because the cultural revolutionaries proclaim their loyalty to the very ideals and principles the authorities themselves claim to be upholding — but have failed to do so. Cultural Revolutions in effect claim the higher ground. They bypass the political process and take direct action to further the ideals that the authorities have abandoned or betrayed. Given the fragmentary nature of China’s Cultural Revolution, the history is equally fragmentary — especially given the official reticence to discuss it. Recommended Link [A Storm is Coming]( [Read more here...]( The clock has already started on the biggest financial shift in 20 years, according to one former hedge fund manager. He says, “Fortunes will be made and lost – and the decisions you make now could affect your wealth for the next decade.” [Here's How To Prepare]( A recent academic book, Agents of Disorder: Inside China's Cultural Revolution, provides granular detail on the fragmented, decentralized, rapidly evolving dynamics of the movement: (The author) devoted decades to examining the local records of nearly all of China's 2,000-plus county-level jurisdictions. He found that factions emerged from the splintering, rather than the congealing, of class-based groups. Small clusters of students, workers, and cadres struggling to respond to Mao's shifting directives made split-second decisions about whom to align with. Political identities did not shape the conflict; they emerged from it. To explain this process of identity formation, he offers a theory of 'factions as emergent properties' and suggests that similar dynamics may characterize social movements everywhere. In other words, groups modified their alliances, identities and definitions of "class enemies" on the fly, entirely free of central authorities. Factions splintered, regrouped and splintered again. In the chaos, no one was safe. Those who lived through The Cultural Revolution are reticent about revealing their experiences. Even in the privacy of their homes in the U.S., their voices become hushed and their reluctance to give voice to their experiences is evident. What Cultural Revolutions Share in Common Here’s the unifying thread in my view: The accused belonged to some "counter-revolutionary" elite — or they were living vestiges of a pre-revolutionary elite (children of the landlord class, professors, etc.) — and it was now open season on all elites, presumed or real. What generates such spontaneous, self-organizing violence on a national scale? My conclusion is that cultural revolutions result from the suppression of legitimate political expression and the failure of the regime to meet its lofty idealistic goals. Cultural revolutions are an expression of disappointment and frustration with corruption and the lack of progress in improving everyday life. These frustrations have no outlet in a regime of self-serving elites who view dissent as treason and/or blasphemy. By 1966, China's progress since 1949 had been at best uneven, and at worst catastrophic. The Great Leap Forward caused the deaths of millions due to malnutrition and starvation, and other centrally planned programs were equally disastrous for the masses. Young people found there was no avenue for dissent within the Party, and no way to express their frustration with the Party's failure to fulfil its idealistic goals and promises. When there is no relief valve in the pressure cooker, it's eventually released in a Cultural Revolution that unleashes all the bottled-up frustrations on elites which are deemed politically vulnerable. These frustrations have no outlet politically because they threaten the status quo. All these repressed emotions will find some release and expression, and whatever avenues are blocked by authorities will channel the frustrations into whatever is still open. A Cultural Revolution gives the masses permission to criticize the abstract class that "deserves" whatever rough justice is being delivered by the Cultural Revolution. As the book review excerpt noted, the definition of who deserves long overdue justice shifts with the emergent winds. So those at the head of the Revolution might find themselves identified as an illegitimate elite that must be unseated. I submit that these conditions exist in the U.S. today. Recommended Link [Biden Set To Bring Major Changes To Your Bank?]( [Read more here...]( President Biden is planning to pick Michael Barr to lead the OCC. That’s the agency that recently announced a big change that could impact the following banks: - Bank of America - Chase - Wells Fargo - Citibank - S. Bank - BB&T, SunTrust, and PNC Bank. See the details, because if you have money in any of those banks, this will impact you. [Click Here To Learn How]( The Falcon Will No Longer Hear the Falconer The systemic failure of the status quo to deliver on idealized promises and the repression of dissent outside "approved" (i.e. unthreatening to the status quo) boundaries. What elite can be criticized without drawing the full repressive powers of the central state? What elite will it be politically acceptable to criticize? I submit that "the wealthy" are just such an abstract elite. To protect itself, a repressive status quo implicitly signals that the masses can release their ire on an abstract elite with indistinct boundaries — a process that will divert the public anger, leaving the Powers That Be still in charge. But just as in China's Cultural Revolution, central authorities will quickly lose control of conditions on the ground. They will maintain the illusion of control even as events spiral ever farther from their control. The falcon will no longer hear the falconer. In other words, once the social pressure cooker valve gives way, then the unleashed forces soon grasp that there are few limits on what they can criticize as long as they do so within an implicitly approved narrative. For example, "the wealthy" hoarded wealth and power and so it is just to claw it back by whatever means are available. Since the government failed to do so, the people will have to do so. The Pressure Cooker Is Getting Hot The extreme inequalities of wealth and power that are now the dominant dynamic in America are heating the cultural pressure cooker. When the pressure can no longer be contained, then being recognized as wealthy will shift very quickly from something desirable to something to avoid at all costs. The lesson of China's Cultural Revolution in my view is that once the lid blows off, everything that was linear (predictable) goes non-linear (unpredictable, fragmented, contingent, emergent, prone to extremes, uncontrollable). If America experiences a Cultural Revolution, the outcome won't lend itself to tidiness or predictability. To use an analogy, if the pendulum is pushed to an extreme, when it's released, it will reach an equivalent extreme (minus a bit of friction) at the opposite end. That could be an unexpected but entirely foreseeable Cultural Revolution. Those who claim that can't happen in America are safely outside the pressure cooker, protected by a delusional confidence that ‘since I'm doing great, everyone is doing great.’ Since real political agency is no longer allowed, then the pressure will find release outside the political system. And yes, it could happen here. Regards, Charles Hugh Smith for The Daily Reckoning Editor’s note: It’s not a stretch to argue that the Fed is partly responsible for today’s societal instability. It’s inflated asset values that have benefited the wealthiest Americans while failing to help everyday Americans in the real economy. And the central banks blew the doors off the printing press in 2020. [Click here for more...]( As you can see by the chart, the U.S. is not alone. The E.U. and Japan are also over the 100% mark. Meaning debt is higher than GDP. The world’s balance sheet is heading in the wrong direction. And they all have the same solution… [Print More Money.]( That’s why silver was the best performing asset in 2020. But it still hasn’t hit a new all-time high like gold, the Dow, and the S&P 500. That could change soon. [Discover the market forces pushing silver to new highs here.]( More and more people are discovering just how small the silver market is… and how scarce and in demand silver is becoming. [Get the full story here… and learn how you can protect your money in process.]( --------------------------------------------------------------- Thank you for reading The Daily Reckoning! We greatly value your questions and comments. Please send all feedback to [feedback@dailyreckoning.com.](mailto:dr@dailyreckoning.com) [Charles Hugh Smith][Charles Hugh Smith]( is an American writer and blogger, and serves as the chief writer for the blog "Of Two Minds". Started in 2005, this site has been listed No. 7 in CNBC's top alternative financial sites, and his commentary is featured on a number of sites including Zerohedge.com, The American Conservative, and Peak Prosperity. Add feedback@dailyreckoning.com to your address book: [Whitelist us]( Additional Articles & Commentary: [Daily Reckoning Website]( Join the conversation! Follow us on social media: [Facebook]( [LinkedIn]( [Twitter]( [RSS Feed]( [YouTube]( The Daily Reckoning is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Paradigm Press delivering daily email issues and advertisements. To end your Daily Reckoning e-mail subscription and associated external offers sent from The Daily Reckoning, feel free to [unsubscribe here.]( Please read our [Privacy Statement](. For any further comments or concerns please email us at feedback@dailyreckoning.com. 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