Greenspan bubbles and the emergence of intangible asset manager capitalism of attention merchants

The text exposes the main insights acquired after LEHMAN BROTHERS’ (LBHI) autopsy, and shows how the autopsy revealed the flaws of orthodox NEOCLASSICAL ECONOMIC THEORY hacked from NEWTONIAN PHYSICS, in explaining and predicting the catastrophic events of the near economic history, and suggests perspectives of understanding the role of Alan Greenspan’s monetary policy of the United States (1987-2006) in the emergence of unimpeded global dominance of plutocratic intangible economy of ASSET MANAGER CAPITALISM that simultaneously produced a decade long secular stagnation in the rich world with global sharp steady increases in inequality of wealth and income distribution before, during and after the 2008 financial crisis. It attempts to show how continuing disequilibria between spending and saving within and between major economies, and a return to a multipolar world with similarities to the unstable conditions of pre-First World War have emerged as the main threats to the global economy. A brief history of the transition from MANAGERIAL CAPITALISM of nation states of the post-World War II institutionalized with the BRETTON WOODS AGREEMENT, to global ASSET MANAGER CAPITALISM, is presented to enlighten CHIMERICA’s evolution (China+America), and President Trump’s attempts to dismember CHIMERICA by promoting the emergence of a bipolar world to replace it with - TECHNOLOGY COLD WAR by weaponized post-WTO global logistics interdependence. The globally interdependent techno-sphere is shown as an enabled outcome of the implementation of WASHINGTON CONCENSUS of Anglo-American ASSET MANAGER CAPITALISM, that survived a comatose near death experience in 2007-2008 to emerge entrenched and consolidated for President Trump’s Trade Wars. The major warriors and battlegrounds of THE TECHNOLOGY COLD WAR are identified. Whether the next crisis will be another collapse of the global financial and economic system, or whether it will take the form of political or even military conflict, is impossible to say. Neither, seems, inevitable. The text shows how GAIA THEORY sheds new light on economic growth, how fuzzy logic affects the national accounts, how accounting systems over-value the assets of publicly traded multinational companies balance sheets, and how network theory reveals the value of relationships, and argues that the economy needs to be viewed as a complex, chaotic system, as scientists view nature, not as an equilibrium seeking NEWTONIAN construct.

Greenspan bubbles and the emergence of intangible asset manager capitalism of attention merchants

The text exposes the main insights acquired after LEHMAN BROTHERS’ (LBHI) autopsy, and shows how the autopsy revealed the flaws of orthodox NEOCLASSICAL ECONOMIC THEORY hacked from NEWTONIAN PHYSICS, in explaining and predicting the catastrophic events of the near economic history, and suggests perspectives of understanding the role of Alan Greenspan’s monetary policy of the United States (1987-2006) in the emergence of unimpeded global dominance of plutocratic intangible economy of ASSET MANAGER CAPITALISM that simultaneously produced a decade long secular stagnation in the rich world with global sharp steady increases in inequality of wealth and income distribution before, during and after the 2008 financial crisis. It attempts to show how continuing disequilibria between spending and saving within and between major economies, and a return to a multipolar world with similarities to the unstable conditions of pre-First World War have emerged as the main threats to the global economy. A brief history of the transition from MANAGERIAL CAPITALISM of nation states of the post-World War II institutionalized with the BRETTON WOODS AGREEMENT, to global ASSET MANAGER CAPITALISM, is presented to enlighten CHIMERICA’s evolution (China+America), and President Trump’s attempts to dismember CHIMERICA by promoting the emergence of a bipolar world to replace it with - TECHNOLOGY COLD WAR by weaponized post-WTO global logistics interdependence. The globally interdependent techno-sphere is shown as an enabled outcome of the implementation of WASHINGTON CONCENSUS of Anglo-American ASSET MANAGER CAPITALISM, that survived a comatose near death experience in 2007-2008 to emerge entrenched and consolidated for President Trump’s Trade Wars. The major warriors and battlegrounds of THE TECHNOLOGY COLD WAR are identified. Whether the next crisis will be another collapse of the global financial and economic system, or whether it will take the form of political or even military conflict, is impossible to say. Neither, seems, inevitable. The text shows how GAIA THEORY sheds new light on economic growth, how fuzzy logic affects the national accounts, how accounting systems over-value the assets of publicly traded multinational companies balance sheets, and how network theory reveals the value of relationships, and argues that the economy needs to be viewed as a complex, chaotic system, as scientists view nature, not as an equilibrium seeking NEWTONIAN construct.

___

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