A note
from 2014:
I’m
really having trouble realizing what happened to me a few hours ago. After
reading a response to my article, and rereading it several times, I discovered
there was far more there than even I realized. It was simply shocking to see
what I did see. Here it is, preliminarily. I just need much more time to
process this all, but it seems to be true, so far anyway. I simply blew the
title up into more than it may truly be, but it seems likely to help us
considerably if the “arbitrage incompatibility-impossibility” is
entirely true. I’m just too overwhelmed to know, right now. All the pieces
point to it being true, though. See what your brain does with it.
Lloyd
China
Is Accidentally Cheap-Labor-Arbitraging Capitalism Into Bankruptcy, Unless It
Chooses “Internal Exchange Clearing Necessity…”
A
warning: You will understand little of this without abandoning
conventional thinking, and adopting a theoretical stance of non-conventional
thinking.
My last
article; “E = 1/5 X — A 1/5 Division of Global Exchanges Creates
Perfect Competition, A Question of Limits —
System Costs”, http://macromouse.blogspot.com/2014/12/e-15-x-15-division-of-global-exchanges.html has
opened up a view into a macroeconomics mechanics I had never dreamed possible.
Though I had years past realized America’s entry into global capitalism, with
all its natural wealth of almost free resources, land and cheap labor, laid
upon old world capitalism a dynamic market influence so powerful, it actually
continued a series of bankruptcies and depressions upon all involved, lasting
over 200 years; I had not realized it was almost completely an “arbitrage
incompatibility-impossibility” of new market integration upon an older
established and more or less “price established-stabilized” market
capitalism. America’s new total market factors ushered in a set of
dis-equilibrating market mechanics which is only comparable to present state
China’s and Russia’s “cheap-labor-resources-arbitraging” hoisted
upon present capitalism, which is nothing less than an almost “impossible
arbitrage incompatibility”. This is simply an accident of the inertia of
historical precedence beyond all, thus far, received economic wisdom.
It seems we are going to have to rewrite all the economic books, or at the
least, realize we absolutely do need an entirely “triple-new” economics.
This
new economics book must start out; “This Is A Massive Arbitrage
Problem: It’s impossible for our present arbitrage markets to
re-equilibrate global markets, with all the speculative opportunities opened up
by this new age of digital tech and robotics’ capacities, joined with Russia’s
and China’s cheap-labor-resources-arbitrage re-entrance into capitalism”,
so “What should we do?” Simply put, capitalism’s supply and
demand system fails to function, without extreme disruptions, if arbitrage
markets are impossible of keeping up with speculative markets, to equilibrate
total supply and demand, which is exactly what “Is” happening
right now. All the arbitrageurs in the world could not have performed the
market tasks required to balance such a massive imbalance as Russia and China
both re-entering, after being out for so long a set of periods, especially having
so little inflationary price rises as they did over that “being-out” dis-inflation
history, compared to the rest of the capitalist nations’ inflations, only to be
massively multiplied in complexities by the new digital techs, formal databases
and robotics rise. Still, at base, it’s nothing more than “the missing
arbitrage genie”, by way of not being a robust enough genie to equilibrate
such huge unequal price dynamics of total market integration supply and demand
speculative forces.
I’ll
have to stop here and catch my breath — this
is just far too overwhelming to take in all at once. We’ll
need to round up the historical figures to prove the above, even though I know
most of the figures are floating around somewhere in the back of my
brain , or maybe I'm over-analyzing right now. I'll have to sleep on it.
Later,
Lloyd
P.s.
Talk
about “a hole in the doughnut economics” — Arbitrage…?
The
Free Market Myth — The Missing “Invisible Hand” of “Sufficient
Arbitrage…”
http://en.wikipedia.org/wiki/Arbitrage
People
who engage in arbitrage are called arbitrageurs (IPA /ˌɑrbɨtrɑːˈʒɜr/)—such
as a bank or brokerage firm. The term is mainly applied to trading in financial instruments, such
as bonds, stocks, derivatives, commodities and currencies.
Addendum:
Historical
Arbitrage Is, The Internal Financial Mechanics of Perpetual Economic
Suzerainty, That All Empires Have Risen & Fallen By — Including Our Present
State of China-Russia Communism vs Western Capitalism!
