
“Capitalism has already ended and we don’t even know it” is, helas, true.
“Techno-feudalism” is, indeed, a pertinent description of the current state of affairs.
Any further than that…
Varoufakis is ‘long’ on money. He’s so heavily invested in this concept that he has somewhat lost his bearings.
For him, capitalism had started to die when public money has been replaced with the private kind. When people have started to replace national currencies with encrypted ones.
I’m afraid this is a huge misunderstanding.
‘Real’ money being replaced with the ‘fiat’ kind was a symptom, not a cause!
I hear you!
For purists, ‘commodity money’ is the real thing while fiat money is printed by the government. Hence ‘commodity money’ is considered to have ‘intrinsic’ value while fiat money is seen as being less valuable than the paper it’s printed on. For some of those purists, bit-coin – and other equivalent coins – are real. In the sense that their valuation comes from the market. ‘Bit-coin is valuable because people keep buying it’.
As if people buying gold, and accepting dollars in exchange for what they have to sell, is not the very same thing! Value being conferred by the free market…
The way I see it, real money is the kind people trust to use while fiat money is the kind which is ‘made’ by somebody.
These two are not mutually exclusive??? But why should they?!?
Back to Varoufakis’ confusion. Which is a continuation of that between capitalism and the primitive accumulation of money.
Crassus, a very wealthy contemporary of Caesar, was loaded. Full of money. The real kind… Loads and loads of gold coins.
Did that, Crassus owning an insane amount of money, made him an early capitalist?!?
Capitalism, the one hailed by Adam Smith, is about trust, not about money!
We became capitalists the moment we started doing business with each other. When when trade was no longer sanctioned by the lord.
When commerce no longer had to be ‘protected’ by the Mafia which previously controlled the territory. As was the case during the feudal era.
Hence the insistence of those who know what they are talking about when it comes to market freedom!
I repeat, capitalism began when market participants had enough mutual trust to trade directly. To deal with their partners without any intervention or mediation from the the powerful of the day.
And yes, if we look from this angle, capitalism has disappeared. People, those who populate the market, have lost both their trust and their freedom.
The vast majority of them are obsessed with profit. And the obsessed are anything but free!
Meanwhile none of them trust their business partners anymore. In earnest…
People continue to trade because they rationalize their greed. Consider that chasing the fast buck is the rational thing to do and are convinced everybody in the market are equally ‘reasonable’. That since all of them chase the same thing, all of them will act rationally. Hence predictably…
Which, as we innocently discover periodically, is nothing but horse manure. Bull-shit. Pure and unadulterated crap!
Crassus wasn’t chasing even more money!
He wanted power…
Another fallacy we keep entertaining is that ‘people respect the law’. And are going to fulfill ‘the contract’, without any outside intervention.
We’ve grown accustomed with contracts being fulfilled, in good faith, during the ‘good old days’. When a handshake was enough.
Nowadays… contracts are fulfilled only because the parties don’t want trouble. And this is not at all the same thing!
Unfortunately, Varoufakis is right. Capitalism is dying.
But I’m afraid Varoufakis still has no clue about what capitalism really is!
Used to be…













