Wednesday, August 30, 2006

Irrational Exuberance

When I am digesting the core mantle of the capitalist craze, people always find me a bit repulsive for my lack of taste for the machine that is solely powered by the idea of money. I shall then here address the reason why the idea of money seems so misplaced to me in an existence fueled by the desire; the explanation, at least for some of you, will seem unnecessary beyond the already stated in this first paragraph, the rest of this chapter is written for the others.

When you live in a universe powered by desire we don’t mean that there could not be a universe that isn’t powered by desire energy, it is entirely possible to imagine a universe powered by any number of things, the only thing that is impossible is to imagine a universe powered by money. Nice rhythm there, “powered by money.” It is not then that we are opposed to a universe powered by money, it is that it is impossible to have a universe, something in so grand a scale, financed, supported and propped up by pure raw wealth. Further it is impossible to imagine and even impossible period, to think of the consistent expansion of the human species as powered by money. We would want instead to argue that an inherent desire within the species, to survive, thrive and magnify its feeling of the universe, are what drive us to prosper as a species. We can even imagine that the destruction of other species by us as we civilize the planet is inherent in our blind desire not to understand that the death of living organisms, regardless of species, is detrimental to our cause, and indeed an act of suicide. This is because a species regardless of propensity shares with us the biological real of energies. If we are to beat inorganic material, the most successful manifestation of low energy existences, then we need to maintain biological variety so as to ensure that we may overlord infest all inorganic habitats and prosper control over them. Still, continuing with the overall theme, if we wanted to reduce the human quest to a more basic desire-component, such would be the pro-positive existence of biological creatures. With the understanding that there are times when certain biological elements are going to eat each other because the misery of biology is that it is based on symbiotic consumption, all living things eat living things, and those things that feed off of inorganic material are never going to thrive far from the inorganic material and will be reduced to population limit enforcement by habitat. Besides, if you want to grow up, that is become a complex multicellular organism, you must be willing to eat things that are bigger than you and digest them and feed them too so that they may grow and grow us with them. Regardless of how we get to appoint our progeny a greater sense of destiny, the propagation of species would seem to be better dealt with if we took into greater consideration the success of biology in general.

The question is how does money become such an imperative for existence? Where do we get it that we need to exist via a capitalistic agenda of monetary gain, property rights and intellectual property rights, when the desired condition of any being is automatically transferred and channeled through the medium of humanity to those that are receptive to it, and in so being how can we isolate and quantify individual aims, to monetize them, when individual aims have no bearing without a symbology for humanity.

Anyone reading this will say: “Who said money was everything?” think of it this way, the most important people in the world today are economists, not even scientists can top the notch, economists are the most important people in the world today, and were that not sufficiently wrong and bad and terrible, the most important institutions are central banks and their monetary policy shakes and bakes humanity. Further a field, business matters center all attention on business matters and monetary gain. Keep on going in the same direction and we find that there is really very little motivation without a monetary inheritance. And the monetary idea has a logical and grounded basis, jobs! The creation of labor was an interesting idea, the more interesting idea was the creation of paid labor, and when you pay labor you can then tax their payroll, which is why all the craze about job creation. Governments comprehend that they need to create jobs, the only way to create jobs is to grow the economy, and so every nation state, I like that word, nation state, I don’t know precisely what it means, but a nation state is probably bigger that mightier than a country, anyway every nation state must encumber itself with the idea of perpetual growth.

Now there is nothing wrong with perpetual growth, as long as you have infinite resources, which are first glance look dismal. The earth we now know, is round and therefore its resources are stuck in a loop. Geographically it would have been better if the world were flat, our ancestors were well wishers, when we discovered that the world was round we made it possible to go around the world and around, but all circles recycle geography and you can’t go beyond that! So the fact that the earth is round is a finality of geography which limits resources, further the diameter of the earth, were it fatter could substantially eliminate this problem but the diameter of the earth is not that fantastic a girth, we have managed to populate every continent save the polar caps, and the fact that the earth is mostly covered by oceans and not land, it means that we have been furthered reduced in potential capacity. Of course, there is always the moon colonies, the mars colonies, and the extra solar system colonies and even the orbital colonies, all these allow us to grow a little bit more in this and that direction, but until we find another earth like planet, we are all going to be astronauts per force. Granted, just when one thinks everything has been exhausted and done for and all that is left to eat is tuna, then something new and tremendous happens and whole new potential opens up. So perpetual growth is possible without thinking of current day mineral and especial limitations.

…but, but if we imagine the current economic hysteria, perpetual growth leads to a crash of nation states into each other, the only way for the Americans to expand their economy is to grow it into other economies, that is to crash other economies, it is not sustainable to maintain perpetual growth if you have independent economies, and much less if you only have one economy which would, due to sheer size, grow exponentially. If you look at Asia, Europe and North America you can see these economies as slaming tidal waves buying every consumer and attracting every job, until sundenly they have to decide if to work together as one economy or to attempt to maintain economic separation. If you merge world banking, a necessity if you are going to merge an economy, then the implications are that you immerse economies into one, as is the case in Europe today, the single market is currently destroying country economies, and the persistence of this ideology should generate substantial growth initially, but there will come a point when it will reach saturation, faster than disjointed economies because disjointed economies do not muster resources or the benefits of a single currency, the economically isolated gradient allows for slower growth, but in a combined economy of economies little prevents the markets from restricting themselves, specially due to the greater economies of scale. Undaunted the markets blindly collude to collide into each other at an even faster pace that would ever be imagined.

Economies as they collide into each other will find that there isn’t much love between the sameness of their economic architectures; they will all have fully developed banking systems, currencies would have been normalize by same currency between nations or by well adjusted exchange mechanism that would limit the worth relationship of currencies; intrinsically all developed economies will have it as a rule that their local markets have reached maturity, which translates to external expansion mandates, and this includes the nurturing of external resources as those back home ought to be running at optimum capacity, limiting how much greater output can be gained by further investment. The best mine is the unmined.

Unfortunately the foreign markets with their own economic engines will be reaching high levels of productivity and efficiencies and any association between two separate but enterprising economies will invariably lead to stagnation. They will have to place limits on each others scope of action, how far into each others markets will they allow business to feed, and as these are regulations, man made, they have a tendency to suffocate the progress of the machine but also to cause it to generate adulterated prices and goods, which will abnormalize both markets. Making them thus subject to more human intellectual manipulation which will invariably lead to transparent incoherent finagles.

Labor will continue to compete in price, but the price of labor will stagnate, the lack of dynamics in any market induces descending normalization, until an equilibrium is reached by the natural market forces. Only the economic engines of each region were geared for growth, the stagnation will not be considered an equilibrium but rather a danger to the world economy, capitalism has a growth cap that capitalism refuses to acknowledge, it is this little know cap that mandates a substitute to such economic engines. When capitalism finds that it can not grow it will attempt to alter things, move this here, change that there, add more spirited causes to cause growth to partake again in the economy, and there is always the faith in human ingenuity, a new invention like the steam engine, a new idea like the internet, cut spur growth, at one time we had records, then came tapes, then came CDs, then came DVD, all covering the same market and consumer, the music industry, the music listener, the changing platform made the consumer have to change their listening device and their music collection had to be updated to the new medium, but there is a limit here because you are just dealing with redundancies, save the benefits of digital recordings, or the tapes efficiencies over the record, there remains a clear allusion to sameness and market saturation. The same ill be true for any aspect of advance economies overreaching each others consumers. For all economic engines are more defined by a consumer than they are defined by the type of labor.

The prophetic prediction here is that a new system will come into being, by its very nature the system will not have anything to do with property rights, intellectual property or capital and growth as the driving forces. All those things will have been depleted as they are indeed exhaustible resources. The only reason that capitalism has thrived is because it has given itself exclusive control of these resources, human talent and ingenuity, but the most inconsistent thing is the human talent, at some point human talent unleashes its energies against its captor, how that will unveil itself is yet to be determined, but an ironic fact it is that undaunted economic growth will unchained labor.