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" Fearless commentary on finance, economics, politics and power Follow yvessmith on Twitter Feedburner RSS Feed RSS Feed for Comments Subscribe via Email SUBSCRIBE Recent Items Links 3/11/17 - 03/11/2017 - Yves Smith Deutsche Bank Tries to Stay Alive - 03/11/2017 - Yves Smith John Helmer: Australian Government Trips Up Ukrainian Court Claim of MH17 as Terrorism - 03/11/2017 - Yves Smith 2:00PM Water Cooler 3/10/2017 - 03/10/2017 - Lambert Strether Why a 400-Year Program of Modernist Thinking is Exploding - 03/10/2017 - Yves Smith Links 3/10/17 - 03/10/2017 - Yves Smith Why It Will Take a Lot More Than a Smartphone to Get the Sharing Economy Started - 03/10/2017 - Yves Smith CalPERS' General Counsel Railroads Board on Fiduciary Counsel Selection - 03/10/2017 - Yves Smith Another Somalian Famine - 03/10/2017 - Yves Smith Trade now with TradeStation - Highest rated for frequent traders Why a 400-Year Program of Modernist Thinking is Exploding Posted on March 10, 2017 by Yves Smith By Lynn Parramore, Senior Research Analyst at the Institute for New Economic Thinking. Originally published at the Institute for New Economic Thinking website Across the globe, a collective freak-out spanning the whole political system is picking up steam with every new "surprise" election, rush of tormented souls across borders, and tweet from the star of America's great unreality show, Donald Trump. But what exactly is the force that seems to be pushing us towards Armageddon? Is it capitalism gone wild? Globalization? Political corruption? Techno-nightmares? Rajani Kanth, a political economist, social thinker, and poet, goes beyond any of these explanations for the answer. In his view, what's throwing most of us off kilter - whether we think of ourselves as on the left or right, capitalist or socialist -was birthed 400 years ago during the period of the Enlightenment. It's a set of assumptions, a particular way of looking at the world that pushed out previous modes o

"With each interaction, Alexa is training to hear better, to interpret more precisely, to trigger actions that map to the user's commands more accurately, and to build a more complete model of their preferences, habits and desires. What is required to make this possible? Put simply: each small moment of convenience - be it answering a question, turning on a light, or playing a song - requires a vast planetary network, fueled by the extraction of non-renewable materials, labor, and data. The scale of resources required is many magnitudes greater than the energy and labor it would take a human to operate a household appliance or flick a switch. A full accounting for these costs is almost impossible, but it is increasingly important that we grasp the scale and scope if we are to understand and govern the technical infrastructures that thread through our lives. III The Salar, the world's largest flat surface, is located in southwest Bolivia at an altitude of 3,656 meters above sea level. It is a high plateau, covered by a few meters of salt crust which are exceptionally rich in lithium, containing 50% to 70% of the world's lithium reserves. 4 The Salar, alongside the neighboring Atacama regions in Chile and Argentina, are major sites for lithium extraction. This soft, silvery metal is currently used to power mobile connected devices, as a crucial material used for the production of lithium-Ion batteries. It is known as 'grey gold.' Smartphone batteries, for example, usually have less than eight grams of this material. 5 Each Tesla car needs approximately seven kilograms of lithium for its battery pack. 6 All these batteries have a limited lifespan, and once consumed they are thrown away as waste. Amazon reminds users that they cannot open up and repair their Echo, because this will void the warranty. The Amazon Echo is wall-powered, and also has a mobile battery base. This also has a limited lifespan and then must be thrown away as waste. According to the Ay

"Twenty-first century imperialism has changed its form. In the 19th century and the first half of the 20th century, it was explicitly related to colonial control; in the second half of the 20th century it relied on a combination of geopolitical and economic control deriving also from the clear dominance of the United States as the global hegemon and leader of the capitalist world dealing with the potential threat from the Communist world. It now relies more and more on an international legal and regulatory architecture-fortified by various multilateral and bilateral agreements-to establish the power of capital over labor. This has involved a "grand bargain," no less potent for being implicit, between different segments of capital. Capitalist firms in the developing world gained some market access (typically intermediated by multinational capital) and, in return, large capital in highly developed countries got much greater protection and monopoly power, through tighter enforcement of intellectual property rights and greater investment protections."

"Class Warfare "Towards a History of the Professional: On the Class Composition of the Research University" [Viewpoint Magazine]. From 2013, but it still looks interesting. By arrogating more power to the top layers of academic administrative elite, some in the academic profession saw the possibility of imbricating themselves into the same social class as capitalists, rather than simply serving them. Federal, state, and local laws changed to make students into consumers; courts ruled that public, non-profit universities could patent and own intellectual property; a new type of capital, venture capital, was developed to accelerate the transmission of research into products; and a sub-class of faculty, the adjunct, was formulated to teach the dregs of the expanding university system - those composing the massive undergraduate base, forced into higher education as a college degree became a de facto requirement for admission into any of the professions, and many other occupations. Graduate students and adjuncts took on the bulk of the teaching, freeing star faculty from the responsibility of lecturing to dullards for whom their words would be proverbial pearls before swine."

The article describes this dynamic, in which the rise of China plays a central role, and argues that the dynamic between state geoeconomic measures and corporate statecraft will define how far the global economy will depart from the current market orientation and how much it will be subject to national strategic choices.

"If corporations returned to the practices of the pre-neoliberal era (1952-1983, to be precise), stuffing not half but less than a fifth of their cash flow in their shareholders' pockets, that could take net investment back to its old average. But under today's model of capitalism, it's more important to keep the shareholders happy."

"As early as the 1980s, this insight was presciently confirmed by the late scholar Seymour Melman. Melman was one of the first to state the perhaps not-so-obvious fact that the huge amount of Department of Defense (DoD) Research and Development (R&D) pumped into the economy has actually stifled American civilian industry innovation and competitiveness, most notably in the very manufacturing sector that Trump is seeking to revitalize with these "reformed" trade deals."

"The casual observer can hardly comprehend the value-extracting power of hedge fund activists. Technically, they are no more than minority shareholders. Yet they exert enormous influence, often forcing these companies to undertake fundamental restructuring and to increase stock buybacks and dividends substantially. For instance, Third Point Management and Trian Fund Management, holding only 2% of the outstanding stock of Dow Chemical and DuPont, respectively, engineered a merger-and-split of America's top two chemical giants at the end of 2015 that resulted in both massive layoffs and the closure of DuPont's central research lab, one of the first industrial science labs in the United States."

"The term 'loneliness' first crops up in English around 1800. Before then, the closest word was 'oneliness', simply the state of being alone. As with solitude - from the Latin 'solus' which meant 'alone' - 'oneliness' was not coloured by any suggestion of emotional lack. Solitude or oneliness was not unhealthy or undesirable, but rather a necessary space for reflection with God, or with one's deepest thoughts. Since God was always nearby, a person was never truly alone. Skip forward a century or two, however, and the use of 'loneliness' - burdened with associations of emptiness and the absence of social connection - has well and truly surpassed oneliness. What happened?"

"The current paradigm of independent, inflation targeting central banks thus obscures the messy history of central banks as public institutions. Since their inception, monetary authorities have performed various different roles; while they served as guardians of price stability in Victorian England, they have originally served as developmental and fiscal agents for expansionary states, and have frequently continued to do so in the centuries since. Treating central bank independence as an ahistorical best practice approach is misleading, and we should recall that there have been alternatives to the current framework. As some have heralded the end of the era of central bank independence, while others have underscored the benefits of re-politicizing monetary policy, it is worth bearing this history in mind."