Financial Capitalism: The Endgame
By: Renegade Inc.
Tags: Reform, Neoliberalism, Debt, Capitalism, Financial Crisis

“The establishment are afraid of facing the consequences of a real change in the system”, argues Friedrich. “The banks have betrayed all of us…. They manipulated interest rates, for example. Everybody who bought a house with credit was suffering. Then, the politician’s we elected bailed out the banks with our taxes. And we thought the politicians are here for us….The banks are still here. Goldman Sachs, JP Morgan, the European Central Bank — they’re all still here. Nothing happened. And then, since 2008, the people lost trust in the media as well.”

So it’s a historical loss of trust all over the place.

The authors argue that it’s not just the holy trinity — banks, politicians and media — who are to blame. They also point a finger at the public’s inability to take personal responsibility.

“Change always comes from the people. We are more than them. And if we’re not taking the step forward and change something nothing will change”

Friedrich also adds, “That’s why we say we the people have to create the change right now. The monetary system failed. It’s bankrupt. We have to change it. Let’s think about a new monetary system…. We have to create the change. And if not creating it there will be a lot of damage. That’s what we all have to face right now.”

Hijacked

Friedrich and Weik posit that big opportunities predicated on a system that prioritises people above profit could emerge from the chaos of the next crash. Aligned with Marx, the authors note how the productive capacities capitalism has engendered over the centuries has greatly benefited humanity while recognising that, over recent decades, capitalism has been hijacked by a form of cronyism — its extreme variant — neoliberalism:

“If you make a bad economical decision as a private person or as a business owner, that’s it, you’re out of business. But if you are a bank no problem at all….The United Kingdom sells bonds to finance the whole system. So who’s buying the bonds? The answer is hedge funds, insurance companies, banks and now, central banks.”

This kind of crony capitalism exists in what Friedrich acknowledges is a context in which politicians tell the public that they have got record employment and everybody’s better off. “But nobody tells them that more and more people are doing two or three jobs within low and stagnating wage sectors”, says Friedrich.

He continues:

“There is a problem in the monetary system. And if the currency collapses the people have to pay for it, not the government….In 2001 we established a currency monetary union in Europe with the euro. It was just not going to work. It’s madness to put strong economies like Germany with weak economies like Italy or Greece in one currency. For Germany the Euro is too cheap which is why the country is exporting so many goods and so they can’t even get into the market. It’s like it’s too expensive. Meanwhile, Germany is getting stronger while the weaker nations are getting weaker. This then opens the door for reactionary political leaders. And so the cycle continues.”

The Endgame

While in Argentina during the crisis in 2001, Friedrich first realized that in the event of an economic crisis and currency collapse, it’s the public who are forced to pay. The economist understood that there are only three possibilities to delete the debts in the system — inflation, devaluation of the currency and war. In each case, it’s the people who are forced to pay.

What are the likely consequences of the end game — the biggest bubble in human history?

According to Weik:

“The morning after the end game we can solve the crisis, if we are smart. …But if it is postponed, there will be an implosion of the markets globally on something like the scale of 1929, maybe even worse.

So we have to rethink how to restart the system from scratch….Otherwise there would be a big bang and then it’s getting really nasty and much more expensive.”

Friedrich proffers a slightly different perspective:

“We need a new currency system — a new monetary fund. If the people don’t take control of the system, the alternative digital system could be like ‘1984’, it will be horrible. It’s why we have to get power back to the people. Solutions will likely be utilized through artificial intelligence controlled by people for the benefit of people. We explain this in our books and videos.”

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