How do we create value in an economy that is increasingly dependent on knowledge? The answer is complicated by the reality that knowledge is increasingly digital and “unownable” and therefore almost free.
Financialization as a substitute for creating value has run its course.
The crony-capitalist answer is always the same, of course: bribe the government to create and enforce private monopolies. This process has many variations, but a favored one is to deepen the regulatory moat around an industry to the point that competition is virtually eliminated and innovation is shackled.
Disagreement is part of discourse, and pursuing differing views of the best way forward is the heart of democracy. Disagreement is abundant, democracy is scarce, despite claims to the contrary.
If you think you can surgically extract Empire from the American System, force the State to serve the working/middle classes, end the stripmining of financialization, limit crony capitalism/regulatory capture and get Big Money out of politics–go ahead and do so. I’m not standing in your way–go for it.
But while you pursue your good governance, populist, Left/ Right /Socialist/ Libertarian, etc. reforms, please understand the system is indivisible:
With authentic growth scarce, there’s no other way to reap huge profits but cannibalism.
When people say “capitalism has failed” or “capitalism has succeeded,” we have to ask: what type of capitalism do you mean? Authentic capitalism, in which capital is placed at risk to earn a return in a competitive, transparent marketplace, or do you mean cartel-state capitalism, or crony-capitalism, or monopoly capitalism or finance capitalism, i.e. the types that dominate the global economy?
As long as most startups crash and burn, and anyone with a few bucks and plenty of inner drive can start an enterprise, authentic capitalism still lives. But let’s face it, authentic capitalism occupies a diminishing corner of the U.S. and global economies.
Anyone with a remotely functioning brain will by now be aware that America is an oligarchy, not a democracy. In fact, a recent academic study by Princeton and Northwestern University found that the desires of the public have absolutely zero impact on public policy.What does have an impact is money. Lots and lots of money. This is where billionaire oligarchs and CEOs of large multi-national corporations come in, as they arrogantly throw around their clout to advance their wealth and power, and further drive the unwashed masses into hopeless serfdom.
GE’s CEO, Jeff Immelt, is a perfect example. This is what he had to say recently at the Economic Club of Washington.
Read the rest here.
The Federal Reserve is appalled that we’re not spending enough to further inflate the value of its corporate and banking cronies. In the Fed’s eyes, your reason for being is to channel whatever income you have to the Fed’s private-sector cronies–banks and corporations.
If you’re being “stingy” and actually conserving some of your income for savings and investment, you are Public Enemy #1 to the Fed. Your financial security is nothing compared to the need of banks and corporations to earn even more obscene profits. According to the Fed, all our problems stem from not funneling enough money to the Fed’s private-sector cronies.
Ridding the world of Monsanto via a state buy-out would be a boon to humanity.
Capitalism fails in two situations: monopoly and state-capital cronyism. Monopoly extinguishes competition and that effectively extinguishes capitalism.
When the elites of the state and private capital collude, i.e. crony capitalism, the few gain power and wealth at the expense of the many.
The state (broadly speaking, government) fails when it serves the few at the expense of the many, while claiming to serve the interests of the many. The state only fulfills its purpose when it serves the interests of the many at the expense of the few who control the majority of the political power and private wealth.
Monsanto is the epitome of monopoly and crony-state collusion.
If there’s one thing I’ve learned over the years, it’s that whenever you hear the term “public-private” partnership, brace yourself for a screw job of epic proportions. It’s in exactly the same vein as the classic observation uttered by the late comedian, George Carlin, about politics:
The word bipartisan means some larger-than-usual deception is being carried out.
It makes perfect sense if you think about it. If you’re a large corporation, there’s nothing better than guaranteed profits; and there’s no better way to guarantee profits than by going into business with the one entity that can do this: government. On the other hand, if you are an ambitious and greedy politician, what better way to earn a fortune while ostensibly engaging in “public service” than by lining the pockets of big corporations, which will then line your pockets in return in various opaque ways. Extraordinary fees for speeches is one preferred way of doing this, as is the classic revolving door that gives the person a cushy corporate job after leaving government.
Read more here.
In so many ways, Warren Buffett and modern America are the same thing. An idea packaged and marketed so brilliantly, most of humanity unquestionably believes the myth. Warren Buffett and the U.S. both sell themselves as encompassing the very best of human qualities; highly successful, extraordinarily intelligent, yet at the same time, extremely ethical. It’s that last part that’s actually most important to the continued power and prestige of both the man and the nation-state. However, when you look beneath the surface, it becomes increasingly clear that neither of them actually come close to what’s printed on the package.
Read the rest here.
One of the main reasons that hyper-luxury cars are outselling regular cars, is because all of the wealth gains from the oligarch recovery are going to, well, oligarchs. This has been a regular theme here at Liberty Blitzkrieg, and is further evidence that global policies implemented since the oligarch created financial melt-down, have been used to cover up its criminality, and further advance the status quo’s consolidation of wealth and power. A continuation of this trend presents the greatest threat to liberty, free markets and an evolution of human consciousness on the planet today.
Read more here.
One of my greatest frustrations during the post-financial crisis period has been the unwillingness of the rich and powerful to call out central banking for what it is: financial slavery. While I accept that many are simply ignorant or brainwashed, there are plenty who know exactly what’s going on and are merely trying to make as much money as possible from the Federal Reserve created scam before the music stops. For those with influence in society, this is a highly immoral choice.
Read more here.
One attribute I like most about Glenn Greenwald is that he never pulls punches. One of his most prescient and cutting political lines came earlier this year when he made some observations on the upcoming 2016 Presidential election, in which two status quo, corrupt, bloodthirsty con-artists will compete for the Oval Office. While we don’t yet know which crony the GOP will put up, Hilary is pretty much a foregone conclusion for the Democrats. Greenwald observed…
Read the rest here.