The Technological Catalyst Behind Frequent Financial Market Capitulation
Technological Catalyst Behind Frequent Financial Market Capitulation
by James Felton Keith
August 9, 2011
...In a knowledge economy where people arent performing back-breaking work at the volumes that they used to, and the labor of ten knowledge workers of the 1980s can be performed by one project manager using 30 years of benchmarked data with soft/hardware help, its difficult to spread the wealth that we once did.
When the markets sell off equities into cash, they are saying that the economy is inflated and weak. There are no buyers for the products being produced, because there are no jobs. There are no jobs, because of all of the error-proofing that proceeded them; and finally, it is exceedingly difficult to quantify what peoples knowledge, experience, existence is worth in the old paradigm...
If one looks at the M1&M2 numbers at the US Federal Reserve, theyll notice that all of the money we need to fix/build anything still exists. This is the same across the globe. When the news says that money supply is lower, what they actually mean is that money distribution is lower, because the money supply, as the link shows is rarely diminished. As an economy retracts, funds return to its originator. The wealthiest of our species cannot conceive of how to spread a trillion dollars around, at the moment, because there are fewer and fewer tasks to assign a wage and a human resource. Ive got a few solutions to recommend in my next book project, 'Integrationalism: Essays on Ownership and Distributing Value in the 21st Century.'
