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What's Really Killing Capitalism
Submitted by Bill Bonner via Bonner & Partners,
Stifling Growth
Zombies and cronies stifle the process of growth and wealth creation.
To add wealth, you have to add knowledge. That is, you have to learn to do things better.
The trouble with zombies is that they don’t want to learn. Learning is hard. And costly. Zombies just want to take the fruits of someone else’s learning.
Likewise, cronies try to freeze the process of accumulating knowledge.
New knowledge – accumulated by others – is threatening. It is what causes disruption. And what economist Joseph Schumpeter called “creative destruction.”
Cronies fear this new knowledge and try to block it from ever happening – with subsidies, licensing requirements, and other regulatory impediments.
George Gilder, in his latest book, Knowledge and Power: The Information Theory of Capitalism and How It Is Revolutionizing Our World, is that an economy is fundamentally a learning system, not a way for distributing wealth, believes that this obstructionism is a bigger threat to prosperity than debt.
When Capitalism Fails
Information, says Gilder, is always surprising. It tells us things we didn’t know.
In an economy, the person who is the source of most important new information is the entrepreneur. He is the fellow who takes risks, builds a new business, and then – surprise, surprise – it works!
The cronies want to stop him, before he undermines the value of their old assets and old business models with new information.
The zombies want to drag him down, leeching on him so greedily that he runs out of energy.
But without the entrepreneur, capitalism fails.
Capitalism also fails when the information the entrepreneur relies upon is distorted.
When the feds fiddle with interest rates, for example, they turn the most important signal in capitalism into misleading noise. Gilder:
[I]nterest rates are noise, rather than signal. Interest rates near zero cause finance to hypertrophy, as privileged borrowers reinvest government funds in government securities. Only a small portion of these funds goes to useful “infrastructure,” while the rest is burned off in consumption beyond our means.
Gilder believes the signals must move through channels – secured, but not corrupted – by government!
Yes, government exists. It is going to provide “channels” – laws, property protection, speed limits, and so forth – whether we like it or not. And it will be better for us all if it just keeps the channels open and free from twists and tolls.
But that is very different from providing “guidance.” Politicians don’t have the information or experience to provide guidance. They are zombies. They don’t want to learn the nitty-gritty details of real wealth building. They should just make sure basic laws – against murder, theft, and fraud – are enforced.
And otherwise butt out.
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Just look at how quickly China grew over 20 years of telling intellectual property holders to go fuck themselves. In that time they nearly completely erased a 100-year technology gap with the West.
Just look at how quickly China grew over 20 years of telling intellectual property holders to go fuck themselves. In that time they nearly completely erased a 100-year technology gap with the West.
SB, that was a temporary phenomenon. China will be back to her old impoverished ways soon enough.
I doubt it. Stupid 'mericans sent their manufacturing base there. That means they have all of your IP except for the marketing campaigns.
How hard is it to advertise a buy-1-get-1 on eBay?
FUCK YOU America from Canada!
Capitalism..when and where did Bill see capitalism. I have been seeing losses socialized with a printing press for 100 years.
RIPS
As Marx predicted 150 years ago, when production no longer needs human labor, then information becomes the source of value and is hoarded by the elites.
Uber is a classic case. People need to be transported. People are willing to provide transportation. Uber hoards the information through their gateway to both overprice the transportion to the customer and screw the provider of said transportation.
If you are leaving a bar and could directly contact the nearest driver that has space in their car, it would be a lot cheaper. If you want instant pickup, you point to a yellow car with a light on the top of it (what a novel idea). Since Uber doesn't screen rapists and perverts, they don't seem to be providing a whole lot of value. They just hoard information and think it creates value.
Lets face it, Uber is providing a lower cost alternative to the crony-statist model.
Take your example of "rapists & perverts" driving a car for a living, "the state" gave errr, ahhh...SOLD the cab company a license did it not? So if a yellow cab driver rapes and/or fondles a passenger why is it that the state is not held liable for issuing that license to a company that hires rapists & perverts?
Furthermore, "the state" can drive business to their preferred "companies" so its not a neutral actor in this, they do it by simply lowering the alcohol level to zero thus forcing you to take their preferred cab...or don't drink.
That doesn't seem fair to me but of course, its sold to you and others as a "public safety" issue...which is bullshit.
Uber drivers are independent contractors (that is likely changing in some places, notably california) & mostly part time, hence how they get around a lot of things. Uber is VERY worried about their operators being reclassified as employees as that would drive a giant stake right through their business model.
Their business model is breaking the law and raking in as much cash as they can before the populace realizes it.
It is people that is killing Capitalism. Curiously, it was also people that killed Communism.
Exactly. All we have is social competition. Each one of us are duking it out with one another, regardless of whether we care to play the game or even acknowledge the game.
The people in control do not care what classification some asshole academic gives to the economy. Whether you're in a communist or capitalist state, you're competing... This competition takes many forms and shapes virtually all aspects of our lives, especially the legal system/political system. Regardless of the supposed system, there are a few folks at the top who control it... you can call them comrades, party leaders, kings, or you can prohibit them from having any titles of nobility, but it doesn't change their substance, nor the substance of our existence.
People becoming fixated on labels, like capitalism, are no different than those who demand one political party is better than the other... to engage in the discussion is to miss the boat.
duo, what the fuck is wrong with you?
"The law" is dead.
"Uber drivers are independent contractors (that is likely changing in some places, notably california) & mostly part time, hence how they get around a lot of things."
Yes they are contractors and you say that as if finding a way to get around statist bullshit thrown in the way is a bad thing.
Agree 100%. This is a stupid argument to be having on here. If I have a car and willing to drive you somewhere in exchange for money, food, a blowjob, whatever we negotiate, and you agree to it, I see no reason why the state has any reason, or any right, to be involved in that transaction at all. ( don't worry, nmewn, if you ever need a ride somewhere, I won't bring up a blow-job...)
Begging the state permission? The cabbies are just mad because they fell for the premise that you must have the govts permission to conduct any economic transaction. If they really cared about 'fairness' they would be demanding an end to this regulatory nonsense rather than demmading everyone live under it too.
I believe said blowjob is what the tax-man would call a "benefit in kind" but don't worry there are certain ends he won't chase you to (-:
Yes they are contractors and you say that as if finding a way to get around statist bullshit thrown in the way is a bad thing.
The 'competitive advantage' is based on ignoring regulations that other companies are complying with, in other words they are benefitting from government regulations they don't comply with. If they are found to be outside of the law their entire model would need to change.
You may see this as some great anti-government freedomfuckfest, but it's really not much different than a waste disposal company dumping toxic sludge into a river, declaring it a brilliant cost saving innovation and then dragging out court battles over their right to do so. Even the playing field on the regulations and most of ubers advantages disappear.
If people ignored all laws I'm sure there are many great ways to increase profits in the short term! The only reason it works in tech is because the technology has so far been good at masking the legality of what is being done (the fact that congress is extremely old/ not tech savy doesn't hurt).
Spoken like the "uber"-statist you are, you're really not comparing carting people from point A to point B for a fee to dumping toxic waste in the municipal water supply are you?
Oh, I guess you just did.
Don't talk to me about "law" and "regulation" after ObummerCare, Dodd-Frank, TPP ET FUCKING CETERA was passed, that dog don't hunt no mo...and I'm going to put a fucking bullet in its head cuz its a useless eater to me, just like tyrants passing "laws" I will never obey.
So, if I give you ten bucks to drive me to the Waffle House will you be a good little citizen and claim it on your taxes?
Spoken like the "uber"-statist you are, you're really not comparing carting people from point A to point B for a fee to dumping toxic waste in the municipal water supply are you?
Principal (competitive $ advantage by going around regulation) is the same. The fact that you agree with one regulation and disagree with another is irrelevant to the economics.
If the regulations need to change, go that route. But the moment everyone becomes free from the law to dump toxic waste into local water supply there will cease to be an economic advantage in doing it. And if your entire business profit model is based on being the lone courageous freedom fighter dumping waste into the river, your margins will take a serious hit!
Now hear this...James Cole will not let his toxic waste strawman burn to death without the state getting full use of his manufacturing of it!
Going around US "law & regulation"...so lemme see if I got this strawman straight, you are saying that I...as a US citizen (or even if I'm not)...must abide by US law & regulations even if I'm outside the US?
You sound just like the IRS.
Going around US "law & regulation"...so lemme see if I got this strawman straight, you are saying that I...as a US citizen (or even if I'm not)...must abide by US law & regulations even if I'm outside the US?
Huh? uber is an american company dealing with many legal problems involving various american (state + federal) regulations & also lots of private lawsuits.
Oh, lawsuits, how perfectly statist.
So from the strawman abstract driver dumping toxic waste into the municipal water system...OR...crony statists trying to protect "their taxi turf & revenue/tribute"...OR...leftwing activists just not liking the marginal "free dealer" trying to stay out of the trap of public assitance?
/////
I told you and others, "the law" is now dead to me and my purpose is to administer the coup de grace.
That's right. Picking up a willing passenger and driving that person where he or she wants to go is just like pouring toxic waste in a river.
Please step back a little and think about how and why these two things are actually different. It will help your thought processes a lot.
No but there are valid issues to work and sort out including licensure, inspection, insurance/liability, and passenger safety from the driver.
What do you call a Progressive who wants to keep things as they are?
A Conservative?
or
A Reactionary?
"If you are leaving a bar and could directly contact the nearest driver that has space in their car, it would be a lot cheaper"
We've had it on this side of the Atlantic for ages … Uber seems like a step backwards in many ways!
https://www.hailoapp.com/
Again I say, crony-socialism and greed are not mutually exclusive.
Case in point, the Clintons ;-)
we don't want mister entrepreneur to fail.
not at all.
rather, we want him to succeed in an environment where he pays for sick care and permits and taxes and pensionings
because if he can succeed in that environment, we can buy his operation from him or else borrow funds to do whatever he does, and do it bigger and faster
and we can hire his managers and pay them bonuses with the borrowed money
once we add his operation to our portfolio, we can milk it in ways he never dreamed
earning our "stakeholders" enormous sums
hugs,
bigcorp inc
ps -- let me add my "ditto that", with an extra helping of "heaping debt on the turned-around entity that we walked away from after collecting fantastic fees. -Mitt
You are correct. Big corporations did a jiujitsu maneuver by co-opting the regulatory system (if you can't beat 'em, buy 'em). Now Big Corp. uses the system like a cudgel to beat small business down by making
regulations such an onerous hurdle that many entrepreneurial attempts simply stumble out of the gate and fail. Many folks on here decry socialism, which I'm no fan of; but I think the true culprit is the merger of
Big Corp. & Big Gov.--essentially a softer, gentler form of fascism, which seems to get a little harder all the time.
Yes, this article is BS.
The government, with its over-regulation, taxation, and corruption has killed capitalism. It had the help of a corrupt financial sector and printing by the corrupt Fed but the government is the gang leader in the murder of our potential and initiative. All the other things mentioned would come in a free market which rewards creativity, motivation, hard work, and risk. If the reward is stifled or stolen for redistribution the risk is not taken.
Before anyone yells at me for not saying the bankers control the politicians, consider they couldn't if those who make and enforce laws didn't allow it.
You'll be changing your tune when Mulcliar is running the country...
you should check what aliexpress and alibaba is ... and compare it to amazon, in term of customers... then you realize west is already TOTALLY LOST.
Yes, you are correct. The real problem with both China and Japan (and indeed all Asian economies) is their main advantage, collectivism. So their greatest strength is also their undoing. Both countries benefitted from the individualism which characterisizes American and European intellectual history as noted by de Toqueville. That is why so little new scientific knowledge has emerged from the East. Yes, they can co-operate better with their monoculture and thus excel at manufacturing and incremental improvements on technology developed in the West, but where is the new "seed corn" of the economy, namely ideas? You can't suppress individual freedom and expect scientific progress as the histroy of the soviet empire and its demise substantiate. Individual freedom and non-conformity are the foods of creativity and prosperity. Which is why central planning by so-called experts, also fails.
Thank you, your summary is much better stated than mine. I bow to your learned expression of truth.
Nothing like contracting out a Chinese factory to make your product, only to find the company is working after hours, making the exact product from your specifications and competing with you on the open market.
...and then your only edge is tech support, which is now your main product. And "poof", your country is now "service-based", which you're told is very good for you, so your taxes increase as well.... and poof again, who's in a depression?
Yes, not to mention untold economic espionage that nobody talks about.
It's one thing to have disdain for America's broken intellectual property system, I myself share quite a bit of that feeling. It's quite another to insert moles en masse into a competitors economy and steal everything you want outright.
Causality of this :
1° Nixon played ping pong with Mao to get out of Nam dystopia. The act being to seduce China to leave Commie world and become slave labour factory of Neo-liberal capitalism of USA; aka our 1% + your 99% and we allow a bit of profit sharing with your 1% too, if you be good boys.
2° Clinton and GWB joined the show once Deng Xiaoping said : I'm in bigtime. Now the show really got on the road into derivative fed bonanza. It was NWO chimes where a dime was leveraged thirty times.
3° It got so sweet we gave China preferred status in WTO and now everybody was out rubbing every body else's free Aladdin's lamp for leveraged ZIRP type money. Oh have you seen my hi-tech trick, its Jack's beanstalk !
4° Halleluiah we hit Lehman and the money ran out. The chinese duck suckers were now madoffians.
5° Now we pretend we can print that money to absorb the debt; only multiplying debt to debt cubed.
Now wonder everybody now wants to suck the teat of CBs the only fiat show in town. The FED is now roman werewolfen mother.
So don't cry for China, cry for greenback debt mountain's broken back, as the Reserve milk factory might just run out.
Oh Clinton, Oh Dubya, pardners in crime on Time magazine, the Polo brothers who sold the West for Chinese silk.
Its time to lock them up in the forbidden city with the Minotaur.
The greedy joo who's tribe prints the currency!
Capitalism has been dead for a long time. Capitalism cannot exist where there is QE, bailouts, forced low rates, government/central bank intervention, etc..
Exactly. Bankruptcy is an essential part of capitalism. As is a price of money that is set by the free market rather than some bridge troll in the Eccles building.
Capitalism cannot exist outside an academic incubator... The concept of an economic system forcing competition at all levels is patently against our self interest as producers. This is why it fails every time it is attempted.
TOOOOOOOOOOOOOOO LATE WAS THE CRY!
Well said. There are real good solutions for so many of the worlds problems it is stunning in scope. The catch is vested interests like things just like they are. Monopolized to shit. There is another way. It does not involve force or lies.
Its called ACCOUNTABILLITY. And it has worked everytime its been tried.
In an economy, the person who is the source of most important new information is the entrepreneur.
LOL! I flipped through "Entrepreneur" magazine while getting an oil change the other day. Shit's so fucking disconnected from the Earth that it boggles the mind. Some new fucking designer chair and desk in the 'innovators' section - stuff like that.
Pops told me to check out this "shark tank" teevee show. Apparently you get to stand in front of real 'successful entrepreneurs' and have them validate your ideas like they are some kind of gods of "success" (whatever that means).... sick.
Then you got the whole VC culture in sillycon valley. Some hand-picked faggot boys get to make a new website or fartphone app and call it the beez-kneez, "innovation"... "disruption"... "synergy"
FUCK THAT NOISE.
Entrepreneur is some twit 20 year old trying to sell a company making $2 for a Billion. Lots of people inovate...but the Wall Streeters and Washington have gamed the whole system...and we are going the way of Rome if we don't cleanup our act! What would you call the guy who came up with the GoPro?
What would you call the guy who came up with the GoPro?
Rich.
the person who is the source of most important new information is the entrepreneur. He is the fellow who takes risks, builds a new business, and then – surprise, surprise – it works!
NSA takes everything and sends all the raw data to a little country in the Middle East before even they look at it. Gives the advocates of that little country a head start on everything.
LOL, nailed it x 3!
HEY YOU KIDS OUT THERE WHO ARE CREATING JOBS AND VALUE, GET OFF MY LAWN!
Spot on....takes a lot to pay the hedge fund, Private Equity Stealers and wall street...they want the fruits and the day it is sold they could careless that it is busted. They are truly the vampire squids of the world....skim the top AND LEAVING A CARCASS!
These new world order cunts want their cake and eat it too. You want a one world currency do it, but cancel all debts first. It's that simple assholes.
Ponzi Casino Capitalism was destroyed permanently March 10th 2008 at 11:00am Bear Stearns New York City time. By 12:00pm noon on March 10th 2008 the Ponzi Casino Capitalist system was past the point of no return, and there is no possible, or probable, way that Ponzi Casino Capitalism can be restored. The Oligarchs now collectively realize that nuclear World War Three is inevitable. This means that there will be no future for the majority of the World population other than mass death, and genocide.
The buck stops at mathematics.
Whats killing Capitalism is Corporatism.
Capitalism is You and Me trading with each other for a sensible profit.
What we have are Mega Corporations blocking oportunities and setting prices. And if YOU! try to compete they either put you out of business or buy you out of business.
THEY! Are too big to fail. That is not true Capitalism.
BTW. We need this guy.
http://thehill.com/blogs/floor-action/senate/249076-cruz-accuses-mcconne...
You had me until the last sentence.
No, we do not need the guy who is married to a Goldman Sachs executive. The fact that she went on leave rather than resigning to eliminate the conflict of interest when he declared for President was about as big a clue as they get.
HA! Thanks for the heads up, I did not know that. I will investigate further. But for now, TC seems to be the most intelligent one out there.
It may not make any difference to me what his wife does or did. However, it is worth looking into. Thanks.
It may not make any difference to me what his wife does or did. However, it is worth looking into. Thanks.
Would it make a difference if Cruz worked most recently as a partner for a law firm representing Goldman Sachs? Cruz himself bringing home the bacon with some top shelf clients:
WASHINGTON — In between the fundraisers, debates and campaign stops for his successful Senate race, Ted Cruz earned $1 million as a lawyer last year.
Among his final clients were a businessman who pleaded guilty to bribery, a drug manufacturer that fired an employee who refused to break the law, and a company that illegally copied another’s tire design.
http://www.dallasnews.com/news/politics/headlines/20130804-ted-cruz-made...
https://www.youtube.com/watch?v=ZLSwCWQ7VbA This guy was our best shot; don't know if his boy is cut from the same cloth, but probably doesn't matter considering the MSM hurdles.
James, these may all be legit but yet, maybe not. It is so hard to decifer right from wrong when it comes to politics these days.
I consider Cruz the smartest man out there right now but it is possible that he is the smartest con artist too. Listening to him speak has been quite impessive for me so far. THen again, there is still a year and a half to go.
Thanks for the heads up!
If it doesn't matter to you that his wife is a Goldman Sachs VP then you have no idea at all what is really going on in the big picture, but to make it short and sweet for you let me just explain now that Cruz is another pawn of the financial robber barons and you should understand that his role is to keep people like you from revolting against their control of the government and financial system.
Ok, so I wont vote for his wife then.
Government waste and taxes are killing capitalism. Junior staff that make no money and between themselves and the company are being taxed nearly $0.50 out of every $1.00 up front before a check is even issued does the trick. FUCK IT.
is that an economy is fundamentally a learning system, not a way for distributing wealth,
An economy is neither a "learning system" nor is it a "wealth distribution system". An economy is a collection of in-process trades.
Here's how you test:
Is it possible to have an economy without changing knowledge?
Of course it is. When I buy a steak from my grocer, it is not only not necessary that there be anything leaned, there likely "is not" anything learned. I want a steak and have money. He has a steak and wants money. We trade. An economic exchange takes place ... without learning ... without a change in knowledge.
Is it possible to have an economy without distributing wealth?
Of course it is. When I buy a steak from my grocer, wealth does not change one bit. He starts with what he has, a steak, and ends with what he wants, money, which he values equal to the steak. An economic exchange does take place ... with no change to wealth ... with no distribution of wealth.
Is it possible to have an economy without trade?
Of course not. This is obvious because an economy is a collection of in-process trades. If no new trades are initiated, and all in-process trades run to completion (i.e. delivery), there is nothing left going on. There is "no" economy.
With these things being so easy to test, why do such absurd statements about what an economy is and isn't make it into print?
Hopefully it is that traders are beginning to see it for the hoax it is and always has been. Hopefully they are beginning to realize it doesn't exist as the only viable alternative to communism. Hopefully they're beginning to realize that capitalism and communism are exactly the same thing ... played slightly differently ... but yielding the same advantages to the chosen few and the same disadvantages to the unchosen many.
Tell it to Hillary, she needs some new material.
I have made more money from the internet alone than working I.T. for a company. And why I quit in 2006.
Since then I write, self-publish, have columns and get on the occasional radio show. Been hired for consulting projects, and have my own affiliate business.
And have never been happier. Do what you love and the money will follow.
Those who fight the system (laid off assembly line workers for example), and choose to complain or drink vs. learn that there will always be an automobile to replace the horse and buggy, will call capitalism a failure and come hat in hand to big daddy government.
While those pay attention to change and find the niches to make a living, and may even be lucky enough to do something they enjoy, will always thrive.
“In a world of change, the learners shall inherit the earth, while the learned shall find themselves perfectly suited for a world that no longer exists.”Dovie'andi se tovya sagain (It's time to toss the dice)
Got Karatbars?
That was a good sounding post until you tried to sell us on a pyramid scheme at the end of it. While many one here no doubt say a lot of stupid shit, I doubt many of them are dumb enough to fall for that.
If you want gold, go to a coin shop and buy some, cash, face to face transaction. You don't need to sign up for a pyramid scheme where shysters skim money of you to buy a 1, 2.5, or 5 gram bar.
Fuck off.
let me guess... you're the cousin's brother-in-law's first husband who makes $8500 a week online and you can too if you click here
I'm sure it has nothing to do with such ideology as "Free tampons would slow flow of gender inequality," LOL
http://dailybruin.com/2015/07/20/free-tampons-would-slow-flow-of-gender-inequality/
Merica!
"What's Really Killing Capitalism"
Zion via their grifting banksters' fiat poison. And they are not "killing" capitalism, but plundering the fruits of capitalism, and utilizing tyranny in the service of their instruments of plunder, fiat-debts and usury.
Plunder. Fascism. Tyranny..
Liberty is a demand. Tyranny is submission..
What is Zion: "Zionism is a fifth-column colonial like system of organized plunder that operates on a national and international level via fraudulent-reserve banks, dependent governments, and connected and derivative firms."
Banks run the government.
The banks have failed.
The government has failed.
No, politicians are not zombies, they are predators.
I'm a politician, but I'm a predator of politicians, and policy, and governments, honestann. Frankly, I am light years more diabolical that the predator politicians. The Prince of Darkness cannot hold a candle to me.
I ate Satan for breakfast years ago, baby.
"Corruption" being the operative word.
Capitalism Requires 3 Things --
1) Underlying everything is a large reservoir of ethical behavior.
We kicked God out of School, Government, and our Homes. Howis that working for everybody?
2) Crony Capitalism is at a minimum.
Paid off Goverment reprsentatives everywhere, elected and appointed. No longer we the people, but we the lobbyists and banksters.
3) Monopolistic behavior subdued.
Gone are the days of reasonable scale viewed from the correct domestic view. Now its from the international viewpoint, essentially justifying unlimited size.
ZERO out of three. Sorry folks, until we get this ugly Genie back into the bottle, there is not much hope for the middle class.
capitalism is eating it self
3 main columns of capitalism
-manipulation (free markets)
-no children (cheap human immigration)
-corruption (democracy)
leading country into debt (privatization of a whole country), creating an elite (oligarchs), making war with self financed and created enemies,
cut slowly all social benefits due to austerity, make people work more for less (slavery) and make them to depend on something,
blaming all self-created problems on the victims and weakest of society, and so on
on average the moat successful people of capitalism are jews
and whats good for the jews is bad for everyone else
What's killing Capitalism?
Everyone wants to be an investor and no one wants to do anything.
I want to use my capital to ride on someone else's back that does all the work.
It hasn't done Warren Buffett any harm.
"Putting all your eggs in one basket, starting up your own company always looked too risky for me. Then there is all the hard work, why bother?" Warren
To add wealth, you have to add knowledge. That is, you have to learn to do things better.
The trouble with capitalists is that they don’t want to work. Labor is hard. Capitalists just want to take the fruits of someone else’s labor.