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leverage

by charleshughsmith

Executive Summary

  • The source of leverage being used to manipulate us
  • The powers that be have a much weaker hand than we realize
  • The increase use of force to control the system will ultimately undermine it
  • What options are available to those who want to free themselves from this supression?

If you have not yet read Part 1: Upon The Next Crisis, The Rules Will Suddenly Change available free to all readers, please click here to read it first.

In Part 1 we surveyed the dynamics driving ever-expanding state control, the state’s priorities in crisis management (secure the state’s authority and the wealth/power of elites) and the authorities’ current preference for indirect control of the market.

Leverage and the Market as a Signifier

Markets are no longer markets—they are simulacra of markets, displaying the superficial appearance but not the dynamics and uncertainties of real markets, which have an unnerving tendency to veer away from the state-approved scripts of permanent, stable expansion.

Why have central banks and states (which includes blocs of nations such as the Eurozone with a centralized governing elite) chosen to cloak their control of markets?

The answer is has two parts:  1) central banks/states must leverage their intervention due to the monumental scale of global markets; owning assets worth hundreds of trillions of dollars is at best awkward in the current arrangement and at worst politically impossible.  

While financial leverage is a relatively straightforward tool, 2) the real leverage is exerting psychological control over the market by transforming market price action into a signifier (i.e. signaling mechanism) that persuades participants to…

How To Defend Against An Unfair Re-Set Of The System
PREVIEW by charleshughsmith

Executive Summary

  • The source of leverage being used to manipulate us
  • The powers that be have a much weaker hand than we realize
  • The increase use of force to control the system will ultimately undermine it
  • What options are available to those who want to free themselves from this supression?

If you have not yet read Part 1: Upon The Next Crisis, The Rules Will Suddenly Change available free to all readers, please click here to read it first.

In Part 1 we surveyed the dynamics driving ever-expanding state control, the state’s priorities in crisis management (secure the state’s authority and the wealth/power of elites) and the authorities’ current preference for indirect control of the market.

Leverage and the Market as a Signifier

Markets are no longer markets—they are simulacra of markets, displaying the superficial appearance but not the dynamics and uncertainties of real markets, which have an unnerving tendency to veer away from the state-approved scripts of permanent, stable expansion.

Why have central banks and states (which includes blocs of nations such as the Eurozone with a centralized governing elite) chosen to cloak their control of markets?

The answer is has two parts:  1) central banks/states must leverage their intervention due to the monumental scale of global markets; owning assets worth hundreds of trillions of dollars is at best awkward in the current arrangement and at worst politically impossible.  

While financial leverage is a relatively straightforward tool, 2) the real leverage is exerting psychological control over the market by transforming market price action into a signifier (i.e. signaling mechanism) that persuades participants to…

by charleshughsmith

Executive Summary

  • The key requirements for being a word power
  • Is the "superpower" model sustainable in today's age?
  • The key ability to leverage resources
  • Which country(ies) is most likely to dominate in this century?

If you have not yet read Who Will Be Tomorrow's Superpower? available free to all readers, please click here to read it first.

In Part 1, we surveyed the nature of power to explore the concept of superpowers.  In this Part 2, we look at power as the ability to solve problems.

What Are the Available Resources?

Solving problems in the real world is not an abstract project, though abstract concepts may undergird the solutions. In the real world, we have to use whatever resources are available, with an eye on cost, scale and sustainability.

Alternative energy offers a useful example. Almost everyone agrees that alternatives to fossil fuels would be beneficial, but what is generally overlooked is the tiny scale of alternatives in the current scheme of things.  Depending on what’s being included as alternative (hydropower, etc.), alternative energy sources currently comprise a few percentage points of total energy consumption.

To scale alternatives up to even 50% of current consumption will require not just a monumental amount of capital investment; it also requires the invention and manufacture of new systems of energy storage on an equally vast scale.

As has been noted many times, this capital investment includes an extended period of fossil fuels consumption, as we need huge amounts of energy to construct alternative sources and storage systems. Some have characterized this as building an aircraft in the air while keeping your current aircraft aloft.

As Peak Prosperity members know well, capital has a variety of forms, all of which work together: financial, intellectual, social, human, cultural and symbolic. All these forms of capital must be…

Who Will Dominate This Century?
PREVIEW by charleshughsmith

Executive Summary

  • The key requirements for being a word power
  • Is the "superpower" model sustainable in today's age?
  • The key ability to leverage resources
  • Which country(ies) is most likely to dominate in this century?

If you have not yet read Who Will Be Tomorrow's Superpower? available free to all readers, please click here to read it first.

In Part 1, we surveyed the nature of power to explore the concept of superpowers.  In this Part 2, we look at power as the ability to solve problems.

What Are the Available Resources?

Solving problems in the real world is not an abstract project, though abstract concepts may undergird the solutions. In the real world, we have to use whatever resources are available, with an eye on cost, scale and sustainability.

Alternative energy offers a useful example. Almost everyone agrees that alternatives to fossil fuels would be beneficial, but what is generally overlooked is the tiny scale of alternatives in the current scheme of things.  Depending on what’s being included as alternative (hydropower, etc.), alternative energy sources currently comprise a few percentage points of total energy consumption.

To scale alternatives up to even 50% of current consumption will require not just a monumental amount of capital investment; it also requires the invention and manufacture of new systems of energy storage on an equally vast scale.

As has been noted many times, this capital investment includes an extended period of fossil fuels consumption, as we need huge amounts of energy to construct alternative sources and storage systems. Some have characterized this as building an aircraft in the air while keeping your current aircraft aloft.

As Peak Prosperity members know well, capital has a variety of forms, all of which work together: financial, intellectual, social, human, cultural and symbolic. All these forms of capital must be…

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