Technological Advances and the Great Recession

A big deal of fixes has being tried and many have failed until now in order to restore the global economy to its previous growth, or at least to prevent further downslide. Nevertheless, few people stop to wonder and figure out what may be the causes of the current mess the global economy is facing. Causes, it’s basic to diagnosis and possible remedies. That happens in medicine but also in economics. Politicians work for corporations one way or the other and we (all of us) are inclined to think in a very tiny small scale: from local to regional, to national and the latest priority is to think globally about any sort of problems we face. And here I believe starts the problems: local politicians will not think globally while this crisis is global and the causes are not only a bunch of smart asses in Wall Street or the City of London who brought it about. No, it was the near light speed technological advances that produced the means to such a crisis reach these proportions.

Wall Street

Wall Mean Street

Big deeds transformed in catastrophic changes. The U.S. ignorant elite and its artificial system of values have broken the balance that was their own source of power: created money out of thin air and sold to themselves, the whole world and to the Chinese. The A.I.G. failure had to be solved otherwise would be a real “meltdown of the system” simply because the Chinese could see it as a declaration of war on their trust in the American values, read it as the “Dollar” itself and dump it in favor of its own currency sinking the U.S. and Europe in a depression that 1929 would appear a nice time. It would be real time selling orders to obedient servers instead of human brokers. Selling “values” that only exist in the book, better said, in bits and bytes.

Beside the fact of the fraudulent behavior of the big financial markets all over the place, technology and digital production has shifted the balance in values, production of values and reproduction of wealth. Globally without exceptions. Banking and brokerage are now I.T. programs and are widespread used to the mid to upper classes.

Silicon Valley

The map of the gold mine

The Western countries produce high-end technology innovation but at such a high price that the rest of the world is not willing to pay for it but is applying the oldest rule of humanity since the discovery of fire: to steal what you do not have and use it for your own benefit. India started being a Call Center depository for the Anglo-Saxon world and today has a huge technological park in development. Silicon Valley is full of Indians who “work” there. But when the big money in India calls them back usually they do go back. How come that? In order to earn pennies instead of dollars per hour for highly skilled work? My guess is that the causes are more profound them that. And then we have to deal with a phenomenal brain power called Russia and the old Soviet satellites. What about them? Armies of engineers and math scientists formed and updated continuously on the top of the line of digital production, theft and piracy (considering the still valid rules of copyright). There are assessments of Western secret services that rank the number of industrial spies from Russia, India and China in the West today above any number ever during the cold war. Because those are the hot processors, high speed connections re-routing the center of gravity of the production of wealth in the making. Nobody is willing to lose a minute in the fast paced new world of the digital replication.

The rest of the world will infringe copyright in every single way it can. China copies absolutely everything its commanders decide is strategic to their country and contaminates the environment without a single flaw in its consciousness simply because they have to reach where the West reached too many years before. Brazil offers raw material to the Chinese who use it to produce goods for the whole world. It also feeds them even if for that the Amazon basin will have to disappear. In the BRICs (Brazil, Russia, India and China) and other peripheral countries few, very few people care about copyright laws, environment destruction and climate change. They want the “good life” Hollywood served them in the screens for a whole century (copyright protected) and they could only dream of it. Now, they can grab a piece for themselves and as humans, will steal and kill for that torch of fire that will cook the hunted veal as in the pre-history.
When Wall Street greedy men defrauded the trust in the financial system, they did it out of greed of course, but also out of ignorance without seeing far enough, not so far really, that their system is never ever again to be trusted. People talk about the destruction of the Euro and the end of the Dollar as reference currency. But have you heard anyone talking about the end of the Rubble, the Yuan or the Brazilian Real lately? Let me know where if you did, please!

Karl Marx was wrong in too many things but so was Thomas Jefferson (slaves’ owner for example) but he has said something irrefutable: “change the means of production and you change the ways of relationships.” And that is what happened: the high-end technology and the Information Society liberated forces that permeated the whole human society, from Patagonia to Bhutan, passing by England, Bombay and Jakarta. Mass media is strong still but the great infusion of free information brought about thru digital connections has made an impact that is still early to predict but certainly inevitable to occur. Washington D.C. cannot order the bombardment of Beijing because it infringes copyright materials, neither with Russia or India. A boycott against Brazil would meet an ex-guerrilla woman president that would not doubt to halt the exports exploding commodities prices and to search protection with China and Russia if need be. The “empire” is deadly sick and under internal convulsions. The silly right-wingers in the U.S. believe that the crisis will go away, somehow, when they grab the power again. I’m afraid it won’t and the world as we knew before this crisis will never return to be what it was.

Chinese Dragon after US bombardment

Parallel worlds (virtual and real) have emerged alongside governments and corporations that can be challenged by rivals in order to gain weight in the economical shift and are bound to do so. The new division is more likely to be: “I will take what I need and you cannot stop me at all”. The original “owners” surrendering under the evidence of fatality. First World unemployment is to remain high because a huge mass of laborers are not necessary anymore: machinery is highly efficient, automated and don’t complain. Emerging countries will continue to grow in spite of threat of the IMF that it is another “bubble”. It’s not! They have people, billions to serve and work cheap under inhuman conditions. As far their commanders and bosses allow some circus at the end of the day (entertainment “pirated” from the U.S. for instance); some days a year of vacation and meat, vitamins and everyday starch ration for basic energy they will continue to move on. The poor don’t care for the environment neither for international agreements on whatever subject, they care for food and expect the little pleasures that sort of development is making available to them. The rest is still to be written…

What is the price of his head?

And it is being written as I write: Wikileaks from Assange is wracking the American diplomatic world… That would not be possible without the new technologies in place. And by the way, everybody spies everybody; it’s a game from pre-historical roots. What is the big deal then?

But now WikiLeaks plans to release a U.S. bank’s documents
and that will be really dangerous trend to set. Too many disaffection and plenty of “vendetta’s” will start and nothing will be the same again.



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