The Free Market Myth — The Missing “Invisible Hand” of “Sufficient Arbitrage…”

 

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!