The Left Needs the Stupid to Survive…

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Social pathologies, or the social pathologist undoubtedly. Orwell developed his Newspeak dictionary in order to explain the cognitive phenomenon he observed about him with regard to those committed to the left. Thats not to say that the cognitive phenomenon cannot be on the right, since many mass movement type ideologies are logically contradictory and to sustain themselves their adherents must engage themselves in mental gyrations to upkeep their belief. Orwell needed the Newspeak as part of the apparatus of totalitarian control, something forced on to an unwitting and unwilling public. It never occurred to Orwell that the masses would never care as long as their animal desires were being provided for. The party, much like the Juvenal before them, recognized that the public would not much care about the higher concepts such as truth or freedom as ling as their bread and circuses, in the form of the cynical statement Prolefeed were supplied. In fact, trying to pry them away from such materialities or ‘truth’ would likely cause them the to support the existing regime. This means that a capitalist totalitarianism, with its superior ability to provide for material goods would be harder to dislodge than a socialist one.

Take for example the notion of Doublethink, the idea of keeping two mutually opposing ideas in one’s head without noticing the difference. Orwell saw this mode as an aberration with regard to normal thought but never realized the fact that this was in the common man a mode of cognition. Or the concept of Bellyfeel, which Orwell states,

Consider, for example, a typical sentence from a Times leading article as “Oldthinkers unbellyfeel Ingsoc”. the shortest rendering one could make of this in Oldspeak would be: “Those whose ideas formed before the revolution cannot have a full understanding of the principle of English socialism.” But, this is not an adequate translation…only a person thoroughly grounded in Ingsoc could appreciate the full force of the word bellyful, which implied a blind, enthusiastic and casual acceptance difficult to imagine today.

“Gut-Instinct”, more than reason, is mass man’s mechanism of political orientation. This is why Fascism and Socialism is better understood as appeals to the gut-brain rather than logically and empirically justified modes of political thought. Totalitarian regimes cannot solely rely on oppression for their survival, they also need to rely on some of cooperation  amongst the population, and they bring this about by exploiting the cognitive miserliness of the average man. Orwell, just like many other left-wing intellectuals never really appreciated the mindset of just outside the proletariat that he was. His fundamental misunderstanding of Newspeak lay in the assumption of rationalist fallacy, which assumes that the average man is rational when it counts, but the problem lies in the fact that for the average man cognitive miserliness is the norm. the problem is that a lot of mainstream conservative thought is based on this premise, which in turn undermines its own survival and helps feed the leftist beast. Any conservatives that believes in the right of the conservative miser to choose is a dead man walking. This criticism of the prole-mind is not based on any snobbery, rather it is of functional basis. Competency, not class should be the eligibility for decision-making, and thus no wonder left needs the stupid to survive.

Highest Reality. Thought of the Day 70.0

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यावचिन्त्यावात्मास्य शक्तिश्चैतौ परमार्थो भवतः॥१॥

Yāvacintyāvātmāsya śaktiścaitau paramārtho bhavataḥ

These two (etau), the Self (ātmā) and (ca) His (asya) Power (śaktiḥ) —who (yau) (are) inconceivable (acintyau)—, constitute (bhavataḥ) the Highest Reality (parama-arthaḥ)

The Self is the Core of all, and His Power has become all. I call the Core “the Self” for the sake of bringing more light instead of more darkness. If I had called Him “Śiva”, some people might consider Him as the well-known puranic Śiva who is a great ascetic living in a cave and whose main task consists in destroying the universe, etc. Other people would think that, as Viṣṇu is greater than Śiva, he should be the Core of all and not Śiva. In turn, there is also a tendency to regard Śiva like impersonal while Viṣṇu is personal. There is no end to spiritual foolishness indeed, because there is no difference between Śiva and Viṣṇu really. Anyway, other people could suggest that a better name would be Brahman, etc. In order not to fall into all that ignorant mess of names and viewpoints, I chose to assign the name “Self” to the Core of all. In the end, when spiritual enlightenment arrives, one’s own mind is withdrawn (as I will tell by an aphorism later on), and consequently there is nobody to think about if “This Core of all” is personal, impersonal, Śiva, Viṣṇu, Brahman, etc. Ego just collapses and This that remains is the Self as He essentially is.

He and His Power are completely inconceivable, i.e. beyond the mental sphere. The Play of names, viewpoints and such is performed by His Power, which is always so frisky. All in all, the constant question is always: “Is oneself completely free like the Self?”. If the answer is “Yes”, one has accomplished the goal of life. And if the answer is “No”, one must get rid of his own bondage somehow then. The Self and His Power constitute the Highest Reality. Once you can attain them, so to speak, you are completely free like Them both. The Self and His Power are “two” only in the sphere of words, because as a matter of fact they form one compact mass of Absolute Freedom and Bliss. Just as the sun can be divided into “core of the sun, surface of the sun, crown”, etc.

तयोरुभयोः स्वरूपं स्वातन्त्र्यानन्दात्मकैकघनत्वेनापि तत्सन्तताध्ययनाय वचोविषय एव द्विधाकृतम्

Tayorubhayoḥ svarūpaṁ svātantryānandātmakaikaghanatvenāpi tatsantatādhyayanāya vacoviṣaya eva dvidhākṛtam

Even though (api) the essential nature (sva-rūpam) of Them (tayoḥ) both (ubhayoḥ) (is) one compact mass (eka-ghanatvena) composed of (ātmaka) Absolute Freedom (svātantrya)(and) Bliss (ānanda), it is divided into two (dvidhā-kṛtam) —only (eva) in the sphere (viṣaye) of words (vacas)— for its close study (tad-santata-adhyayanāya)

The Self is Absolute Freedom and His Power is Bliss. Both form a compact mass (i.e. omnipresent). In other words, the Highest Reality is always “One without a second”, but, in the world of words It is divided into two for studying It in detail. When this division occurs, the act of coming to recognize or realize the Highest Reality is made easier. So, the very Highest Reality generates this division in the sphere of words as a help for the spiritual aspirants to realize It faster.

आत्मा प्रकाशात्मकशुद्धबोधोऽपि सोऽहमिति वचोविषये स्मृतः

Ātmā prakāśātmakaśuddhabodho’pi so’hamiti vacoviṣaye smṛtaḥ

Although (api) the Self (ātmā) (is) pure (śuddha) Consciousness (bodhaḥ) consisting of (ātmaka) Prakāśa or Light (prakāśa), He (saḥ) is called (smṛtaḥ) “I” (aham iti) in the sphere (viṣaye) of words (vacas)

The Self is pure Consciousness, viz. the Supreme Subject who is never an object. Therefore, He cannot be perceived in the form of “this” or “that”. He cannot even be delineated in thought by any means. Anyway, in the world of words, He is called “I” or also “real I” for the sake of showing that He is higher than the false “I” or ego.

Tantric Reality

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आत्मा त्वं गिरिजा मतिः सहचराः प्राणाः शरीरं गृहं पूजा ते विषयोपभोगरचना निद्रा समाधिस्थितिः।
सञ्चारः पदयोः प्रदक्षिणविधिः स्तोत्राणि सर्वा गिरो यद्यत्कर्म करोमि तत्तदखिलं शम्भो तवाराधनम्॥

Ātmā tvaṃ Girijā matiḥ sahacarāḥ prāṇāḥ śarīraṃ gṛham
Pūjā te viṣayopabhoga-racanā nidrā samādhi-sthitiḥ |
Sañcāraḥ padayoḥ pradakṣiṇa-vidhiḥ stotrāṇi sarvā giraḥ
Yad-yat karma karomi tat-tad-akhilaṁ Śambho tavārādhanam ||

You (tvam) (are) the Self (ātmā) and Girijā –an epithet of Pārvatī, Śiva’s wife, meaning “mountain-born”– (girijā) (is) the intelligence (matiḥ). The vital energies (prāṇāḥ) (are Your)companions (sahacarāḥ). The body (śarīram) (is Your) house (gṛham). Worship (pūjā) of You (te) is prepared (racanā) with the objects (viṣaya) (known as sensual) enjoyments (upabhoga). Sleep (nidrā) (is Your) state (sthitiḥ) of Samādhi –i.e. perfect concentration or absorption– (samādhi). (My) wandering (sañcāraḥ) (is) the ceremony (vidhiḥ) of circumambulation from left to right (pradakṣiṇa) of (Your) feet (padayoḥ) –this act is generally done as a token of respect–. All (sarvāḥ) (my) words (giraḥ) (are) hymns of praise (of You) (stotrāṇi). Whatever (yad yad) action (karma) I do (karomi), all (akhilam) that (tad tad) is adoration (ārādhanam) of You (tava), oh Śambhu — an epithet of Śiva meaning “beneficent, benevolent”.

This Self is an embodiment of the Light of Consciousness; it is Śiva, free and autonomous. As an independent play of intense joy, the Divine conceals its own true nature [by manifesting plurality], and may also choose to reveal its fullness once again at any time. All that exists, throughout all time and beyond, is one infinite divine Consciousness, free and blissful, which projects within the field of its awareness a vast multiplicity of apparently differentiated subjects and objects: each object an actualization of a timeless potentiality inherent in the Light of Consciousness, and each subject the same plus a contracted locus of self-awareness. This creation, a divine play, is the result of the natural impulse within Consciousness to express the totality of its self-knowledge in action, an impulse arising from love. The unbounded Light of Consciousness contracts into finite embodied loci of awareness out of its own free will. When those finite subjects then identify with the limited and circumscribed cognitions and circumstances that make up this phase of their existence, instead of identifying with the transindividual overarching pulsation of pure Awareness that is their true nature, they experience what they call “suffering.” To rectify this, some feel an inner urge to take up the path of spiritual gnosis and yogic practice, the purpose of which is to undermine their misidentification and directly reveal within the immediacy of awareness the fact that the divine powers of Consciousness, Bliss, Willing, Knowing, and Acting comprise the totality of individual experience as well – thereby triggering a recognition that one’s real identity is that of the highest Divinity, the Whole in every part. This experiential gnosis is repeated and reinforced through various means until it becomes the nonconceptual ground of every moment of experience, and one’s contracted sense of self and separation from the Whole is finally annihilated in the incandescent radiance of the complete expansion into perfect wholeness. Then one’s perception fully encompasses the reality of a universe dancing ecstatically in the animation of its completely perfect divinity.”

 

Accelerated Capital as an Anathema to the Principles of Communicative Action. A Note Quote on the Reciprocity of Capital and Ethicality of Financial Economics

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Markowitz portfolio theory explicitly observes that portfolio managers are not (expected) utility maximisers, as they diversify, and offers the hypothesis that a desire for reward is tempered by a fear of uncertainty. This model concludes that all investors should hold the same portfolio, their individual risk-reward objectives are satisfied by the weighting of this ‘index portfolio’ in comparison to riskless cash in the bank, a point on the capital market line. The slope of the Capital Market Line is the market price of risk, which is an important parameter in arbitrage arguments.

Merton had initially attempted to provide an alternative to Markowitz based on utility maximisation employing stochastic calculus. He was only able to resolve the problem by employing the hedging arguments of Black and Scholes, and in doing so built a model that was based on the absence of arbitrage, free of turpe-lucrum. That the prescriptive statement “it should not be possible to make sure profits”, is a statement explicit in the Efficient Markets Hypothesis and in employing an Arrow security in the context of the Law of One Price. Based on these observations, we conject that the whole paradigm for financial economics is built on the principle of balanced reciprocity. In order to explore this conjecture we shall examine the relationship between commerce and themes in Pragmatic philosophy. Specifically, we highlight Robert Brandom’s (Making It Explicit Reasoning, Representing, and Discursive Commitment) position that there is a pragmatist conception of norms – a notion of primitive correctnesses of performance implicit in practice that precludes and are presupposed by their explicit formulation in rules and principles.

The ‘primitive correctnesses’ of commercial practices was recognised by Aristotle when he investigated the nature of Justice in the context of commerce and then by Olivi when he looked favourably on merchants. It is exhibited in the doux-commerce thesis, compare Fourcade and Healey’s contemporary description of the thesis Commerce teaches ethics mainly through its communicative dimension, that is, by promoting conversations among equals and exchange between strangers, with Putnam’s description of Habermas’ communicative action based on the norm of sincerity, the norm of truth-telling, and the norm of asserting only what is rationally warranted …[and] is contrasted with manipulation (Hilary Putnam The Collapse of the Fact Value Dichotomy and Other Essays)

There are practices (that should be) implicit in commerce that make it an exemplar of communicative action. A further expression of markets as centres of communication is manifested in the Asian description of a market brings to mind Donald Davidson’s (Subjective, Intersubjective, Objective) argument that knowledge is not the product of a bipartite conversations but a tripartite relationship between two speakers and their shared environment. Replacing the negotiation between market agents with an algorithm that delivers a theoretical price replaces ‘knowledge’, generated through communication, with dogma. The problem with the performativity that Donald MacKenzie (An Engine, Not a Camera_ How Financial Models Shape Markets) is concerned with is one of monism. In employing pricing algorithms, the markets cannot perform to something that comes close to ‘true belief’, which can only be identified through communication between sapient humans. This is an almost trivial observation to (successful) market participants, but difficult to appreciate by spectators who seek to attain ‘objective’ knowledge of markets from a distance. To appreciate the relevance to financial crises of the position that ‘true belief’ is about establishing coherence through myriad triangulations centred on an asset rather than relying on a theoretical model.

Shifting gears now, unless the martingale measure is a by-product of a hedging approach, the price given by such martingale measures is not related to the cost of a hedging strategy therefore the meaning of such ‘prices’ is not clear. If the hedging argument cannot be employed, as in the markets studied by Cont and Tankov (Financial Modelling with Jump Processes), there is no conceptual framework supporting the prices obtained from the Fundamental Theorem of Asset Pricing. This lack of meaning can be interpreted as a consequence of the strict fact/value dichotomy in contemporary mathematics that came with the eclipse of Poincaré’s Intuitionism by Hilbert’s Formalism and Bourbaki’s Rationalism. The practical problem of supporting the social norms of market exchange has been replaced by a theoretical problem of developing formal models of markets. These models then legitimate the actions of agents in the market without having to make reference to explicitly normative values.

The Efficient Market Hypothesis is based on the axiom that the market price is determined by the balance between supply and demand, and so an increase in trading facilitates the convergence to equilibrium. If this axiom is replaced by the axiom of reciprocity, the justification for speculative activity in support of efficient markets disappears. In fact, the axiom of reciprocity would de-legitimise ‘true’ arbitrage opportunities, as being unfair. This would not necessarily make the activities of actual market arbitrageurs illicit, since there are rarely strategies that are without the risk of a loss, however, it would place more emphasis on the risks of speculation and inhibit the hubris that has been associated with the prelude to the recent Crisis. These points raise the question of the legitimacy of speculation in the markets. In an attempt to understand this issue Gabrielle and Reuven Brenner identify the three types of market participant. ‘Investors’ are preoccupied with future scarcity and so defer income. Because uncertainty exposes the investor to the risk of loss, investors wish to minimise uncertainty at the cost of potential profits, this is the basis of classical investment theory. ‘Gamblers’ will bet on an outcome taking odds that have been agreed on by society, such as with a sporting bet or in a casino, and relates to de Moivre’s and Montmort’s ‘taming of chance’. ‘Speculators’ bet on a mis-calculation of the odds quoted by society and the reason why speculators are regarded as socially questionable is that they have opinions that are explicitly at odds with the consensus: they are practitioners who rebel against a theoretical ‘Truth’. This is captured in Arjun Appadurai’s argument that the leading agents in modern finance believe in their capacity to channel the workings of chance to win in the games dominated by cultures of control . . . [they] are not those who wish to “tame chance” but those who wish to use chance to animate the otherwise deterministic play of risk [quantifiable uncertainty]”.

In the context of Pragmatism, financial speculators embody pluralism, a concept essential to Pragmatic thinking and an antidote to the problem of radical uncertainty. Appadurai was motivated to study finance by Marcel Mauss’ essay Le Don (The Gift), exploring the moral force behind reciprocity in primitive and archaic societies and goes on to say that the contemporary financial speculator is “betting on the obligation of return”, and this is the fundamental axiom of contemporary finance. David Graeber (Debt The First 5,000 Years) also recognises the fundamental position reciprocity has in finance, but where as Appadurai recognises the importance of reciprocity in the presence of uncertainty, Graeber essentially ignores uncertainty in his analysis that ends with the conclusion that “we don’t ‘all’ have to pay our debts”. In advocating that reciprocity need not be honoured, Graeber is not just challenging contemporary capitalism but also the foundations of the civitas, based on equality and reciprocity. The origins of Graeber’s argument are in the first half of the nineteenth century. In 1836 John Stuart Mill defined political economy as being concerned with [man] solely as a being who desires to possess wealth, and who is capable of judging of the comparative efficacy of means for obtaining that end.

In Principles of Political Economy With Some of Their Applications to Social Philosophy, Mill defended Thomas Malthus’ An Essay on the Principle of Population, which focused on scarcity. Mill was writing at a time when Europe was struck by the Cholera pandemic of 1829–1851 and the famines of 1845–1851 and while Lord Tennyson was describing nature as “red in tooth and claw”. At this time, society’s fear of uncertainty seems to have been replaced by a fear of scarcity, and these standards of objectivity dominated economic thought through the twentieth century. Almost a hundred years after Mill, Lionel Robbins defined economics as “the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses”. Dichotomies emerge in the aftermath of the Cartesian revolution that aims to remove doubt from philosophy. Theory and practice, subject and object, facts and values, means and ends are all separated. In this environment ex cathedra norms, in particular utility (profit) maximisation, encroach on commercial practice.

In order to set boundaries on commercial behaviour motivated by profit maximisation, particularly when market uncertainty returned after the Nixon shock of 1971, society imposes regulations on practice. As a consequence, two competing ethics, functional Consequential ethics guiding market practices and regulatory Deontological ethics attempting stabilise the system, vie for supremacy. It is in this debilitating competition between two essentially theoretical ethical frameworks that we offer an explanation for the Financial Crisis of 2007-2009: profit maximisation, not speculation, is destabilising in the presence of radical uncertainty and regulation cannot keep up with motivated profit maximisers who can justify their actions through abstract mathematical models that bare little resemblance to actual markets. An implication of reorienting financial economics to focus on the markets as centres of ‘communicative action’ is that markets could become self-regulating, in the same way that the legal or medical spheres are self-regulated through professions. This is not a ‘libertarian’ argument based on freeing the Consequential ethic from a Deontological brake. Rather it argues that being a market participant entails restricting norms on the agent such as sincerity and truth telling that support knowledge creation, of asset prices, within a broader objective of social cohesion. This immediately calls into question the legitimacy of algorithmic/high- frequency trading that seems an anathema in regard to the principles of communicative action.

In Praise of Libertarianism. Drunken Risibility

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Devotion to free markets is a sin??? Nah!!!. Like quantitative induction and philosophical deduction, economics has always had a political purpose, and the purpose has usually been libertarian. Economists are freedom nuts, which is to say that they look with suspicion on lawyerly plans to solve problems with new state compulsions and longer jail sentences. Economics at its philosophical birth, among physiocrats in Paris and moral philosophers in Edinburgh, was in favor of free markets and was suspicious of overblown states. Mostly it still is. Let things be, laissez faire, has been the economists’ cry against intervention. Let the trades begin.

True, not all economists are free traders. The non-free traders, often European and disproportionately French, point out that you can make other assumptions about how trade works, A’, and get other conclusions, C’, not so favorable to laissez faire. The free-trade theorem, which sounds so grand, is actually pretty easy to overturn. Suppose a big part of the economy – say the household – is, as the economists put it, “distorted” (e.g., suppose people in households do things for love: you can see that the economists have a somewhat peculiar idea of “distortion”). Then it follows rigorously (that is to say, mathematically) that free trade in other sectors (e.g., manufacturing) will not be the best thing. In fact it can make the average person worse off than restricted, protected, tariffed trade would.

And of course normal people – meaning non-economists – are not persuaded that free trade is always and everywhere a good thing. For example most people think free trade is a bad thing for the product or service they make. But, the reality is to think the need to blockade entry into the profession of being an economist: it is, in all agreement, scandalous that so many unqualified quacks are bilking consumers with adulterated economics.

And very many normal people of leftish views, even after communism, even after numerous disastrous experiments in central planning, think socialism deserves a chance. They think it obvious that socialism is after all fairer than unfettered capitalism. They think it obvious that regulation is after all necessary to restrain monopoly. They don’t realize that free markets have partially broken down inequality (for example, between men and women; “partially”) and partially undermined monopolies (for example, local monopolies in retailing) and have increased the income of the poor over two centuries by a factor of 18. The felony lies in, the lefties think, in exactly its free-market bias.

But, my dearly beloved friends on the left, think, think again. There really is a serious case to be made against government intervention and in favor of markets. Maybe not knockdown; maybe imperfect here or there; let’s chat about it; hmm, a serious case that serious people ought to take seriously. The case in favor of markets is on the contrary populist and egalitarian and person-respecting and bad-institution-breaking libertarianism. Don’t go to government to solve problems, said Adam Smith. As he didn’t say, to do so is to put the fox in charge of the hen house. The golden rule is, those who have the gold rule: so don’t expect a government run by men to help women, or a government run by Enron executives to help Enron employees.

Libertarianism is typical of economics, especially English-speaking economics, and most especially American economics. Most Americans if they can get clear of certain European errors, are radical libertarians under the skin. Give me liberty. Sweet land of liberty. Live free or die. But alas, no time, no time. Libraries of books have been written examining the numerous and weighty arguments for the market and against socialism. Really, that the average literary person believes the first few pages of The Communist Manifesto suffice for knowledge of economics and economic history, in which he professes great interest, is a bit of a scandal. As Cromwell said wearily to the General Assembly of the Church of Scotland, 3 August, 1650, “I beseech you, in the bowels of Christ, think it possible you may be mistaken.” Oh, permit one short libertarian riff.

Nor is government obstruction peculiar to the present-day Third World. In one decade in the eighteenth century, according to the Swedish economist and historian Eli Heckscher in his book, Mercantilism, the French government sent tens of thousands of souls to the galleys and executed 16,000 (that’s about 4.4 people a day over the ten years: you see the beauty of statistical thinking) for the hideous crime of… are you ready to hear the appalling evil these enemies of the State committed, fully justifying hanging them all, every damned one of their treasonable skins? … importing printed calico cloth. States do not change much from age to age. In view of How Muches and Oh, My Gods like these – the baleful oomph of governmental intrusions world-wide crushing harmless (indeed, beneficial) exchange, from marijuana to printed calico – perhaps laissez faire does not seem so obviously sinful, does it now? Consider, my dear leftist friends. Read and reflect. I beseech you, think it possible that, like statistics and mathematics, the libertarianism of economics is a virtue.

Liberalism.

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In a humanistic society, boundary conditions (‘laws’) are set which are designed to make the lives of human beings optimal. The laws are made by government. Yet, the skimming of surplus labor by the capital is only overshadowed by the skimming by politicians. Politicians are often ‘auto-invited’ (by colleagues) in board-of-directors of companies (the capital), further enabling amassing buying power. This shows that, in most countries, the differences between the capital and the political class are flimsy if not non-existent. As an example, all communist countries, in fact, were pure capitalist implementations, with a distinction that a greater share of the skimming was done by politicians compared to more conventional capitalist societies.

One form of a humanistic (!!!!!????) government is socialism, which has set as its goals the welfare of humans. One can argue if socialism is a good form to achieve a humanistic society. Maybe it is not efficient to reach this goal, whatever ‘efficient’ may mean and the difficulty in defining that concept.

Another form of government is liberalism. Before we continue, it is remarkable to observe that in practical ‘liberal’ societies, everything is free and allowed, except the creation of banks and doing banking. By definition, a ‘liberal government’ is a contradiction in terms. A real liberal government would be called ‘anarchy’. ‘Liberal’ is a name given by politicians to make people think they are free, while in fact it is the most binding and oppressing form of government.

Liberalism, by definition, has set no boundary conditions. A liberal society has at its core the absence of goals. Everything is left free; “Let a Darwinistic survival-of-the-fittest mechanism decide which things are ‘best'”. Best are, by definition, those things that survive. That means that it might be the case that humans are a nuisance. Inefficient monsters. Does this idea look far-fetched? May it be so that in a liberal society, humans will disappear and only capital (the money and the means of production) will survive in a Darwinistic way? Mathematically it is possible. Let me show you.

Trade unions are organizations that represent the humans in this cycle and they are the ways to break the cycle and guarantee minimization of the skimming of laborers. If you are human, you should like trade unions. (If you are a bank manager, you can – and should – organize yourself in a bank-managers trade union). If you are capital, you do not like them. (And there are many spokesmen of the capital in the world, paid to propagate this dislike). Capital, however, in itself cannot ‘think’, it is not human, nor has it a brain, or a way to communicate. It is just a ‘concept’, an ‘idea’ of a ‘system’. It does not ‘like’ or ‘dislike’ anything. You are not capital, even if you are paid by it. Even if you are paid handsomely by it. Even if you are paid astronomically by it. (In the latter case you are probably just an asocial asshole!!!!). We can thus morally confiscate as much from the capital we wish, without feeling any remorse whatsoever. As long as it does not destroy the game; destroying the game would put human happiness at risk by undermining the incentives for production and reduce the access to consumption.

On the other hand, the spokesmen of the capital will always talk about labor cost contention, because that will increase the marginal profit M’-M. Remember this, next time somebody talks in the media. Who is paying their salary? To give an idea how much you are being fleeced, compare your salary to that of difficult-to-skim, strike-prone, trade-union-bastion professions, like train drivers. The companies still hire them, implying that they still bring a net profit to the companies, in spite of their astronomical salaries. You deserve the same salary.

Continuing. For the capital, there is no ‘special place’ for human labor power LP. If the Marxist equation can be replaced by

M – C{MoP} – P – C’ – M’

i.e., without LP, capital would do just that, if that is optimizing M’-M. Mathematically, there is no difference whatsoever between MoP and LP. The only thing a liberal system seeks is optimization. It does not care at all, in no way whatsoever, how this is achieved. The more liberal the better. Less restrictions, more possibilities for optimizing marginal profit M’-M. If it means destruction of the human race, who cares? Collateral damage.

To make my point: Would you care if you had to pay (feed) monkeys one-cent peanuts to find you kilo-sized gold nuggets? Do you care if no human LP is involved in your business scheme? I guess you just care about maximizing your skimming of the labor power involved, be they human, animal or mechanic. Who cares?

There is only one problem. Somebody should consume the products made (no monkey cares about your gold nuggets). That is why the French economist Jean-Baptiste Say said “Every product creates its own demand”. If nobody can pay for the products made (because no LP is paid for the work done), the products cannot be sold, and the cycle stops at the step C’-M’, the M’ becoming zero (not sold), the profit M’-M reduced to a loss M and the company goes bankrupt.

However, individual companies can sell products, as long as there are other companies in the world still paying LP somewhere. Companies everywhere in the world thus still have a tendency to robotize their production. Companies exist in the world that are nearly fully robotized. The profit, now effectively skimming of the surplus of MoP-power instead of labor power, fully goes to the capital, since MoP has no way of organizing itself in trade unions and demand more ‘payment’. Or, and be careful with this step here – a step Marx could never have imagined – what if the MoP start consuming as well? Imagine that a factory robot needs parts. New robot arms, electricity, water, cleaning, etc. Factories will start making these products. There is a market for them. Hail the market! Now we come to the conclusion that the ‘system’, when liberalized will optimize the production (it is the only intrinsic goal) Preindustrial (without tools):

M – C{LP} – P – C’ – M’

Marxian: M – C{MoP, LP} – P – C’ – M’

Post-modern: M – C{MoP} – P – C’ – M’

If the latter is most efficient, in a completely liberalized system, it will be implemented.

This means

1) No (human) LP will be used in production

2) No humans will be paid for work of producing

3) No human consumption is possible

4) Humans will die from lack of consumption

In a Darwinistic way humanity will die to be substituted by something else; we are too inefficient to survive. We are not fit for this planet. We will be substituted by the exact things we created. There is nowhere a rule written “liberalism, with the condition that it favors humans”. No, liberalism is liberalism. It favors the fittest.

It went good so far. As long as we had exponential growth, even if the growth rate for MoP was far larger than the growth rate for rewards for LP, also LP was rewarded increasingly. When the exponential growth stops, when the system reaches saturation as it seems to do now, only the strongest survive. That is not necessarily mankind. Mathematically it can be either one or the other, without preference; the Marxian equation is symmetrical. Future will tell. Maybe the MoP (they will also acquire intelligence and reason somewhere probably) will later discuss how they won the race, the same way we, Homo Sapiens, currently talk about “those backward unfit Neanderthals”.

Your ideal dream job would be to manage the peanut bank, monopolizing the peanut supply, while the peanut eaters build for you palaces in the Italian Riviera and feed you grapes while you enjoy the scenery. Even if you were one of the few remaining humans. A world in which humans are extinct is not a far-fetched world. It might be the result of a Darwinian selection of the fittest.