Infowars.com
June 17, 2013<\/p>\n
We\u2019re in a post-capitalist, post-socialism world. I have just come back from the G8 protests in Belfast and it occurred to me \u2014 at this point; we\u2019re post both capitalism and socialism \u2014 and this point needs to be made clear, but we also see some vestiges of both systems in a new, emerging economy that has yet to be named. <\/p>\n
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<\/p>\nPhoto by Guillaume Paumier, via Flickr<\/p>\n<\/div>\n
I agree with the G8 protesters in Belfast that capitalism \u2014 as it\u2019s been iterated in the West in the post WWII era has run its course. The main cause for its demise, as I see it, is that during the 1980\u2019s; thanks to deregulation, futures and options speculation and leverage migrated over to the burgeoning field of \u2018financial futures\u2019 and the price discovery mechanism associated with supply and demand and the \u2018invisible hand\u2019 \u2014 over the ensuing few decades \u2014 completely broke down. Money itself lost any anchor to value as futures traders speculated with virtually no risk on contracts worth many billions that had been willed into existence by financial engineers not by dint of any underlying economic activity. <\/p>\n
And there\u2019s no going back now. You see, financial futures are trading on prices that are based \u2014 not on any underlying economic reality \u2014 but rather a series of assumptions based on academically-concatenated theories and theorems which in turn generate a new set of prices. The result is that capital flows into destabilizing \u2018malinvestments\u2019 all hidden by the outsized returns of intermediaries like hedge funds who make billions mining what has become essentially a broken system of monetizing fraud. <\/p>\n
Since the rising unemployment and social unrest these financially engineered malinvestments produce is ignored, because hedge funds have been making lots of money, nobody is willing to step forward and suggest that making money at the expense of a sound market might be a bad thing. The fake prices are never questioned and the fraudulently garnered riches are always celebrated. <\/p>\n
Prices for all commodities and securities have permanently lost their connection to a functioning economy. Once a pickle, never a cucumber. Financialized capitalism is now in its death throes. <\/p>\n
What about socialism?<\/strong> <\/p>\n As that term is generally understood \u2014 it has also burnt out. Central planning, hierarchical governments, and doctrines guaranteeing \u2018fairness\u2019 simply don\u2019t work; primarily because all centrally planned systems of markets and governments fail the \u2018naturalness\u2019 test. Nothing in nature works for long that is so rigid and unadaptable as man made experiments in central planning except for a few parasites and cancer. <\/p>\n <\/p>\n Today we have hybrid models that contain bits from the previous schools that are racing ahead to fill the vacuum left by collapse of both capitalism and socialism. <\/p>\n Crowdfunding is an emergent idea. It owes a debt of gratitude to socialism. It\u2019s part of \u2018social networking,\u2019 a phenomenon of leveraging the \u2018the whole is greater than the sum of the parts\u2019 idea. Keep in mind that Google\u2019s multi-billion dollar valuation is driven by billions of individuals donating their time and creativity to the collective. So too for \u2018open-source\u2019 software and p2p file swapping. But there is also a necessary component of competition associated with free market capitalism in crowdfunding. A platform like Kickstarter allows for ideas to compete in a free market \u2014 where the funds flow where the market goes; not where a central planner wants funds to go. <\/p>\n Bitcoin is also a post capitalism\/socialism hybrid. It\u2019s growth is driven by a hard coded, centrally imagined algorithm while it\u2019s adoption is possible via the free market activities of users who are rejecting centrally planned, bogus fiat currencies like Pounds, Dollars, and Yen and using Bitcoin instead. <\/p>\n The collapse of the current bankster regime is upon us. This means a whole new set of winners and losers. The point is that it\u2019s not all grim. The future is being imagined and implemented as we speak.<\/p>\n Special for Infowars from Max Keiser, host of Russia Today\u2019s Keiser Report<\/a>, a no holds barred look at the shocking scandals behind the global financial headlines. See his latest report<\/a> discussing the price holograms in a simulated economy.<\/em><\/p>\n <!– <\/p>\n –><\/p>\n This article was posted: Monday, June 17, 2013 at 11:26 am<\/p>\n Tags: activism<\/a>, economics<\/a>, financial<\/a>, money<\/a><\/p>\n\n
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