The article in the Wall Street Journal entitled “I’m Running to Save Capitalism” by John Hickenlooper was interesting. Mr. Hickenlooper is from Colorado and is a candidate for the Democratic presidential nomination. His article seems to imply that Capitalism is in serious trouble and needs to be saved.
I, personally, would suggest that Capitalism is over. Capitalism was over as of 2008 and today we live with central planning…a form of Socialism. Today, our money unit is a virtual unit and those who understand this reality recognize that historical Capitalism is over. Capitalism was based on money tied to some commodity (like gold) and it promoted a private decentralized market economy.
Today, we have a global digital economy which gets managed and manipulated by select central planners (our central banks). Private capital is secondary to public capital. Our central planners can now increase our money units directly via their computers within their central bank facilities. America’s Fed is one example of a central planner which manages the American economy.
Japan’s economy is managed by their central bank, the Bank of Japan. England’s economy is managed by the Bank of England. Germany’s economy is managed by the European Central Bank. All the Eurozone countries are under the management of the European Central Bank. China is managed by the Peoples Bank of China. Russia by the Russian central bank, etc. Is this an example of Capitalism?
Mr. Hickenlooer assumes that our markets are similar to what they were prior to the financial crisis of 2008. This, to me, is invalid thinking. We now live with electronic markets and with high speed computer trading. Algorithms do most of our trading. Markets use virtual money units. These units can be created by merely typing numbers into a computer account. I call this official counterfeiting of our money.
Those who have followed the evolution of our markets recognize that historical Capitalism is over. Our markets are now digital/virtual and global. Algorithms trade 24/7 and our central planners also trade these electronic markets. There are now over 100 electronic exchanges globally. All this has mostly emerged since 2008. Mr. Hickenlooper needs to rethink his view about saving Capitalism IMO.
He claims that the 2020 election will decide if Capitalism flourishes in America again. He recognizes that today’s Capitalism is broken but he does not recognize that this system is OVER. We now need to create a New Model for our world economic system. Kingdom Economics is one alternative. Decentralized markets must occur if a New Model is to flourish. We also need to rethink this idea about what is money and what is value.
You can read the article by Mr. Hickenlooper in the opinion section of the Wall Street journal, page A19, Monday, May 6, 2019. His ideas are rather similar to many who desire more Socialism for America and the world. My model is based on decentralization and the eventual elimination of all money. A free volunteer society is what I envision for the world.
Given what has evolved since 2008, I think that we now must reconstruct all of past economic theory. Socialism leads to Communism. I don’t think these models will advance freedom or prosperity for our interconnected world society. A New Model is needed. Enjoy this day and help me advance the ideas of decentralization and volunteerism.