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Firstly, as for control, the PTB have lost it because the Internet routes around them.

They will simply wither on the vine as people consensually adopt:

(a) Peer to Asset investment and currencies based upon prepaid use value of productive assets held in common; and

(b) Peer to Peer credit creation and clearing - within a mutual framework of trust (and which is nothing whatever to do with Peer to Peer interest-bearing fiat currency debt).

Not only is there nothing the PTB can do to stop this, is it actually in their interests to dis-intermediate. Public sector/state intermediaries minimise tax, while private sector intermediaries minimise finance capital,

This transition is a reality: the whole point of the >$3 trillion Exchange Traded Fund etc industry is that the market risk is not with the middleman, but with the investor.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Sat Feb 16th, 2013 at 07:25:18 PM EST
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as for control, the PTB have lost it because the Internet routes around them.

That is the common wisdom.  I note it is a prediction.  The TPTB have been exhibiting capability to close down or shunt-to-zero Internet association and relational paths at telephone switches, etc., when they chose.  Thus I think the prediction is wildly optimistic.

Peer-to-Peer Economy

TPTB can shut it down any time they bother to make the effort by having their toadies pass laws making effectively illegal and/or erecting so many barriers it is effectively impossible.  At the moment groups like KickStart are no threat.  If it does, then they will take action.  Look at WikiLeaks and how quickly and easily their funding was cut off.

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre

by ATinNM on Sun Feb 17th, 2013 at 04:26:41 PM EST
[ Parent ]
I repeat.

It is in the interests of financial intermediaries to dis-intermediate because this minimises their capital requirement.

That is why they are doing it. That is why there are $3 trillion - yes trillion - in exchange traded funds where market risk has been outsourced to investors.

Capitalism is eating itself.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Sun Feb 17th, 2013 at 06:26:57 PM EST
[ Parent ]
This is going nowhere.

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre
by ATinNM on Sun Feb 17th, 2013 at 07:00:25 PM EST
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ChrisCook:
It is in the interests of financial intermediaries to dis-intermediate because this minimises their capital requirement.

That works only as long as that is their priority. As we can see in the current crisis raw power can be put above all other considerations.

ChrisCook:

That is why they are doing it. That is why there are $3 trillion - yes trillion - in exchange traded funds where market risk has been outsourced to investors.

This is a measurement of success. But how much would this be as a percentage of the traditional model?

Sweden's finest (and perhaps only) collaborative, leftist e-newspaper Synapze.se

by A swedish kind of death on Mon Feb 18th, 2013 at 03:18:40 AM EST
[ Parent ]
Continued economic growth is hard-wired into the corporate world, and the corporate world pulls the strings of today's governments. But continued economic growth is impossible with existing levels of conventional finance capital, which is why investors are moving to the adjacent possible of quasi-equity ETFs and so on.

When these funds fail, having ironically caused the very inflation they aimed to 'hedge' - ie when the current asset bubbles end - investors will move on again to the next adjacent possible, which is already discreetly in wholesale market use ie Prepay.

This completes a 'Back to the Future' circle - since prepay instruments pre-date modern banking - to the Last Big Thing of direct 'Peer to Asset' investment.

The US National Debt is over $11 trillion, so $3 trillion is getting on for 30% of that. Most of this money is swilling across from the $trillions in 'Money Market Funds' now getting negative real rates of interest.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Mon Feb 18th, 2013 at 06:50:19 AM EST
[ Parent ]
See also, the Great Firewall of China.

It's a leaky firewall, but it's not leaky enough to define Chinese domestic policy.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Sun Feb 17th, 2013 at 06:39:35 PM EST
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I know TPTB means The Powers That Be but I can't help reading it as Too Pig to Bail.

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Sun Feb 17th, 2013 at 09:11:56 PM EST
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'The history of public debt is full of irony. It rarely follows our ideas of order and justice.' Thomas Piketty
by melo (melometa4(at)gmail.com) on Mon Feb 18th, 2013 at 05:28:09 AM EST
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