Former Greek finance minister, Yanis Varoufakis, claims capitalism is making itself obsolete thanks to the technologies it has produced. He argues that because companies like Google and Facebook are powered by social production, the private means of production are becoming obsolete. He says that Artificial Intelligence will be capitalism’s downfall. If wishing made it so…
It may only have been a fraction of a percent but make no mistake, last week’s interest rate increase was a big deal. It signalled the Bank of England has given up on reviving the economy, having already inflated the assets of the already rich through its dangerous game of monetary policy. Bank and Treasury economists (aided and abetted by the OBR) are guilty of defeatism. They argue that despite their powers, there is nothing to be done.
The Tory exchequer has roughly four times as much money at its disposal as it did six decades ago. Yet, Britain’s richest 1% has as much wealth as the poorest 57% combined. When Theresa May says capitalism is the “greatest agent of collective human progress ever created”, what she really means is that it is the best model through which her class is able to financially enrich themselves by manipulating the institutions of society.
Forget influencing Presidents and Prime Ministers, European billionaires are funding local elections in the Georgian capital, Tbilisi. When the wealth of oligarchs so dwarves that of the people, it is relatively easy to seize control of the entire political establishment, aggressively pursuing financial interests while keeping the population distracted by identity politics. Tbilisi is a perfect microcosm demonstrating the dangers of what unlimited, uncontrolled capital can do to democracy.
More than 70% of US Municipal Bond holders are exposed to Puerto Rican debt, in excess of $1 billion. Operating in an environment with no oversight or regulation, this powerful group of private investors do not want any default on their bonds and expect a return of 100% or more. There is a dawning realisation within the White House that Puerto Rico cannot simply be abandoned like a failed Casino. Yet again, we see the way in which pure unregulated capitalism is creating unmitigated misery.