In this podcast, the speakers discuss the financialization of the world economy and the dominance of finance capital. They also explore the concept of existence as a consciousness field and the retroactive nature of consciousness. Additionally, they analyze historical connections between influential figures and reflect on the insignificance of political conflicts in ordinary lives. The podcast also delves into the concept of multilateralism in relation to nuclear conflict and proposes that the universe goes through cycles of creation and destruction, likening it to simulations of a greater mind.
The rise of finance capital in the American economy prioritized short-term profits over long-term productivity and innovation.
Financial innovation perpetuates rent-seeking behavior and exacerbates wealth inequality.
Deep dives
Financial cannibalization and the rise of finance capital
The podcast episode discusses the post-70s era in which finance capital became increasingly dominant in the American economy. This shift was facilitated by the New Deal state's relaxation of regulations, allowing finance to break free and capture the political system. The rise of finance capital led to the cannibalization of the existing American economy, prioritizing short-term profits over long-term productivity and innovation.
The impact of financialization on conglomerates
During the 70s and 80s, the newly unleashed finance capitalism led to the creation of diversified conglomerates. Flush with credit, these conglomerates bought up smaller companies in different industries. However, their lack of specialization and accountability led to inefficiencies and undervaluation. This created an opportunity for leveraged buyouts, where companies were bought at artificially low valuations and sold for their actual market value, exacerbating asset inflation in the financial economy.
The illusion of financial innovation
Financial innovation was praised as a key aspect of deregulation in the Clinton era. However, while innovation in the industrial economy fosters productivity and technological progress, financial innovation only increases instability and undermines the real economy. The assumption that financial innovation is equivalent to increases in productivity is a misconception. Instead, it perpetuates rent-seeking behavior and exacerbates wealth inequality.
The challenge of American decline and the absence of alternatives
The podcast explores the decline of American hegemony and the absence of an alternative elite structure to replace it. Elite conflict and the inability to address the interests of ordinary Americans are major factors contributing to this decline. The lack of a global regulatory mechanism for finance and the global reserve currency status of the US dollar help sustain American financial hegemony. The podcast concludes with the suggestion that conflict, such as war with China, seems more likely than a peaceful transition of power, given the self-destructive nature of elites.
Matt Christman goes off live on http://www.twitch.tv/chapotraphouse
Topics: Part 6 of First Class Passengers on a Sinking Ship book club, universal consciousness.
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