1/ Time for a fundamental reexamination of basic ideas.
What is capital? We have confused it with "money" or "credit" and that confusion gave us the central banking bubble.
My definition: Capital is the capability of a population to meet its own diverse economic needs.
What is capital? We have confused it with "money" or "credit" and that confusion gave us the central banking bubble.
My definition: Capital is the capability of a population to meet its own diverse economic needs.
2/ Capital in that sense includes cultural, social practices that enable cooperation in a people and also includes skills, know-how and formal knowledge.
Capital in my sense exists prior to market or the notion of trade itself. Without this capital, there is no trade.
Capital in my sense exists prior to market or the notion of trade itself. Without this capital, there is no trade.
3/ When we have capital in that sense, we are able to meet our own diverse material needs. Trade arises when we exchange our surplus for some other groups' surplus. Markets organize trade.
There can be no trade without surplus (witness the mask and ventilator shortage now).
There can be no trade without surplus (witness the mask and ventilator shortage now).
4/ Capital in my sense is an attribute of a population.
When we look at a larger aggregation of population (millions), we necessarily have to mostly meet the diverse material needs within and the "external" trade needed to satisfy those needs becomes a smaller part of the whole.
When we look at a larger aggregation of population (millions), we necessarily have to mostly meet the diverse material needs within and the "external" trade needed to satisfy those needs becomes a smaller part of the whole.
5/ Trade and markets arise to exchange surplus. Market fundamentalism elevates the role of this exchange above the notion of capital as I defined it.
The market arises only after capital (capability) comes to exist. That was totally forgotten.
This is a fundamental error.
The market arises only after capital (capability) comes to exist. That was totally forgotten.
This is a fundamental error.
6/ Market fundamentalism created vast imbalances between capabilities and consumption, across vast population groups we call nations.
I called this process central bank assisted vendor financing.
I called this process central bank assisted vendor financing.
7/ We are at the end of that era as central banks rapidly lose credibility and demonstrate their own lack of capital i.e. capability, driven by their false dogma.
We have rebuild capital from foundation. That means building skills and know-how, dispersing knowledge widely.
We have rebuild capital from foundation. That means building skills and know-how, dispersing knowledge widely.
8/ We can bootstrap capital into existence. That has been my mission.
The primary ingredient is a motivated group of people willing to master the skills and work hard.
It is that time now.
The primary ingredient is a motivated group of people willing to master the skills and work hard.
It is that time now.
