Attackcoog
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RE: Late Stage Capitalism - Heard of this before and thoughts?
(10-16-2025 03:34 PM)JRsec Wrote: (10-16-2025 12:22 PM)Attackcoog Wrote: (10-15-2025 10:14 PM)JRsec Wrote: (10-15-2025 08:06 PM)Attackcoog Wrote: (10-15-2025 05:52 PM)miko33 Wrote: Response to the idea that "Capitalism was NEVER ALLOWED to be its true self" and the question "Have you read 'The Wealth of Nations'"? Figured it would be easier to start a completely new comment without a myriad of quotes.
There is a copy of the book in the public domain that I linked earlier - contained in a PDF. I have it open in another tab and have been reading it - got to around page 110. Granted I'm skimming for the main ideas and if something looks more interesting I'll read more closely So far nothing revelatory - I've learned this part so far. Topics I've seen were about division of labor, labor costs, buying/selling in open markets, policy differences in Europe causing inefficient markets, etc. It's always been a great work. Smith quantified and defined the economics occurring in the UK in the 1700s. He's the father of Microeconomics. Also provided a lot of background for Macroeconomics too.
I think I'm seeing what you are talking about with not allowing capitalism to operate in a natural state - you're referring to Laissez-faire. I thought maybe you were referring to something else, but it must be this. Is that correct? Assuming it is, then yes in some cases and circumstances overregulation and laws limiting use of resources could affect the economy along with government subsidies to various industries and also government intervention to prop up or push an industry that is not wanted or needed by society. Yes this happens and yes it makes capitalism less effective. However, as it pertains to the concept of "late stage capitalism" this alone is incomplete. One critical component that the Wealth of Nations did fully grasp - and I can't blame Adam Smith for not seeing this - is the high barriers to entry that evolved from larger scale factories. Back in Smith's time, the largest metal producers were small to moderate sized foundries. In today's world you can still open a smaller foundry; however, it's so much more unattainable than for capitalists back then. Farming is a great example of this. Even family farms need to be way bigger today than in the past in order to be able to sell crops. I know farmer's markets exist. However, that's a niche area today whereas in the past that was THE MARKET people went to for their food. Automobiles are another great example. There were way more and smaller sized car companies vs today domestically. The barriers to entry to start your own car company are MASSIVE vs what they would have been in the early 1900s when autos first hit the scene.
Assembly lines and having to have a certain size to hit the economy of scale for many industries were not a thing to deal with Smith's age. That's not a trivial thing. It's no different from the 2nd amendment in in the early 1800s where a typical family had a firearm that would make them a near peer with a soldier vs today where you have zero chance of approaching the firepower of a typical soldier. Same goes for being a capitalist today. Look at what's happened with Amazon, Walmart, Lowes, Home Depot...all of these stores that came into local communities, temporarily cut pricing to drive local businesses out and then raise their prices. LOL, Amazon is no longer the cheap game in town. They put a bunch of people out of business and then...raised prices.
The government looked the other way. They gave up their oversight and regulation of business in most cases. Microsoft would have been split into parts in the early 1900s with anti-trust laws. No one cares today. Amazon would not be what it is today either. But...this is what happens when you allow capitalism to proceed unchecked with no real oversight. The moment one company can exert some dominance in the market, it leverages it ASAP and then does what it can to drive competitors out of the market. That's how unfettered capitalism operates - one or a few get bigger more quickly and then they leverage their sizes to squash the smaller competitors. When government DOES NOT INTERVENE this is the end result. The movement towards monopoly - or oligopoly when a few large firms come to an impasse. Ironically, oligopolies tend to be in threes.
Well----lets be clear. We dont have capitalism anymore at the top levels. One reason we are in the situation we are in is that we have not let companies fail that should have failed. Yes---systemic bank failures and subsequent deep recessions (or even depressions) are not fun---but they are a necessary part of capitalism as the reset the stage, clear the system of bad debt/investments, and refocus capital in new more effective directions. They also motivate respect for long term thinking and create a healthy fear of the consequences of risky behavior in business. Capitalism is where risk taking investors pony up the capital and reap the rewards if the investment pans out---but can lose big if the venture fails. A system where capitalist enjoy the big profits if the investment is a winner----but the taxpayers bear the brunt of cost if the venture fails is NOT capitalism. I dont know what that is---but its not classic capitalism.
Right now---between too big to fail, bank/company bail outs, and Fed meddling----our captains of industry have little long term vision beyond next quarters numbers and they seem too confident that they can take any risk knowing they will be bailed out by the tax payer simply because any Administration will want to avoid a financial storm on their watch. That leads to excessive investment in the wrong places and lots of money tied up in bad zombie companies that should have gone bust years ago.
Your assessment is dead accurate; your conclusion however is not. Why is Gold passing 4200 and Silver at 53? Nobody trusts the banking system, its capitalization, or its account insurance, and they don't trust the value of their own cash. Bitcoin is definitely a testimony to the latter. If the ability of the nation to defend its interests was still widely believed Gold and Silver would not be so high. People for decades trusted the dollar. They did so because of U.S. military might abroad, because the U.S. productivity backed the dollar, and because World Reserve Currency status meant something. The Digital age and 42 Trillion in debt eroded the latter, we exported our ability to produce negating the secondary, and 8 years of a lack of resolve to defend our vital interests first under Obama and then Biden coupled with the DEI military hires has eroded even confidence in the former.
Gold and Silver are high because everyone around the globe knows Hell is coming.
Hell is coming---but the idea floated by many that the dollar is over is hyperbole.
Total value of all the mined gold in the world---about 12 trillion.
Total value of all the dollar denominated bonds in the world--65 trillion
Total value of the US stock market-also based on the dollar-50 trillion
Gold is great---but the reason the world exited the gold standard is there simply isnt enough gold to function as money world wide. The dollar is absolutely not what it used to be---but it doesnt have to be. It just has to be better than any other alternative for use as the world reserve currency. Below is a dollar index that represents the dollar's value with respect to other currencies. As you can see, the relative health of the dollar is quite a bit better than many might suspect. The dollar is still quite in demand---because of its quantity, its quality, its wide acceptance, its relatively fair and uncorrupted legal system, its link to the massive American consumer market, and the backing of the most powerful military on earth.
https://www.macrotrends.net/1329/us-doll...ical-chart
While America has more than its share of faults---its important to remember the world as a whole is a very poor place. Lets put things in prospective when it comes to the success of US capitalism. Annual earnings of right around $30,000 a year would place you in the top 1% of earners worldwide. The vast majority of Americans are part of the "1%" as far as the rest of the world goes. Whether we know it or not---virtually everyone fortunate enough to be born in America are lottery winners compared to the rest of the world.
And none of that addressed the threat I named, digital currency. It will be used to camouflage inflation. And I don't know what kinds of cash amounts you have tried to withdraw from your accounts recently, but our banks have a surplus $100 bills and a paucity of $10's and 20's. And that isn't a random occurrence. It's happened 3/4ths of the times when I wanted cash for travel or a home repair issue. We bank at 3 banks and the problem seems to be fairly common. With the elimination of the penny as far as new mintage goes it's merely another step in an inflationary direction.
What will erode the value of the dollar and accentuate the value of all commodities will be digital currency and digital transactions. It blurs the line of distinctions between physical currencies by making their different values less transparent, and it allows for the inflation of currency beyond the printed treasury notes. And it does so intentionally and by design of those working in the marketplace.
I submit that the inability of cash to keep pace with its digital representation will result in the eventual loss of the last vestige of true freedom in the Western World, the ability to independently conduct trade without the all-seeing eye of government recording it all. And the ability of any citizen to function in the marketplace without having to have the approval of its government to do so. How does the innocent defend themselves when all assets are locked?
The lack of physical cash supply for denominations of bills below $100 is a direct assault on small and private business and an invasion of privacy perpetrated against all citizens. "I will defend the Constitution of the United States against all enemies, foreign and domestic."
All liberty sir, ends with the demise of cash transactions.
I dont disagree---but the basic issue you describe has existed for centuries and began with the practice of fractional banking. For those that dont know what "fractional banking" refers to---its essentially what George Bailey describes in the bank run scene of "Its A Wonderful Life" when he explains "Your thinking of this place all wrong---as if I had the money back here in a safe---the money's not here---well your money is in Joes house---its right next to yours".
The banks only has a fraction of the actual recorded deposits on hand. Instead, it uses most of the deposits to make money through granting loans that pay a higher interest rate than the bank pays on its deposits. For instance---A new bank opens and I deposit $100. JR SEC has a fantastic credit rating a asks the bank for $100. The bank knows JR is a good credit risk, grants the loan, and deposits $100 in JR's account. The bank only has $100 in deposits---but if I look at my bank statement----I still have $100, and so does JR. Not a dollar bill was printed---yet the money supply expanded by $100. Thats fractional banking taken to the extreme---though real life is not much different (I think they only have to have something like 2 or 3% of deposits on hand).
As long as fractional banking exists---nations really dont have much control over the money supply. The banks control the money supply far more than the treasury printing press---and that new money is effectively "digital" because it exists only as digits in a computer ledger which are legitimized via loan docs. The government did basically the same thing to a massive degree when they borrowed a trillion and gave it to folks during Covid (thats was the digital equivalent of printing money--which why it was so inflationary). That money only existed as digits in computers and bank accounts---no physical cash was printed. Honestly, a true bloc chain "digital currency" like Bitcoin actually is more secure against this type of thing because the total supply of the coin is limited by the originator when the project begins and the bloc chain insures a given coin can only exist in one wallet at a time.
As for getting rid of cash---I agree its a privacy issue---not to mention its a security issue. I live in a state where hurricanes hit and we lose power. How the hell is a digital currency going to work when there is no power and possibly no internet or cell network? Cash must remain a viable part of our monetary system.
(This post was last modified: 10-16-2025 04:52 PM by Attackcoog.)
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