{"id":21391,"date":"2016-07-05T19:24:50","date_gmt":"2016-07-06T00:24:50","guid":{"rendered":"http:\/\/olduvai.ca\/?p=21391"},"modified":"2016-07-05T19:24:50","modified_gmt":"2016-07-06T00:24:50","slug":"governments-change-the-corporatocracy-endures","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=21391","title":{"rendered":"Governments Change, the Corporatocracy Endures"},"content":{"rendered":"

Governments Change, the Corporatocracy Endures<\/a><\/h3>\n

Ultimately, the dominance of global capital (the Corporatocracy) is not financial– it’s political.<\/i><\/p>\n

One little-remarked consequence of the central banks’ policies of near-zero interest rates and quantitative easing is the unrivaled dominance of mobile global capital, i.e. the Corporatocracy.<\/b>\u00a0The source of corporate political power is the ability to borrow essentially unlimited sums for next to nothing: what I have long termed\u00a0free money for financiers<\/i>.<\/p>\n

Armed with central-bank supplied unlimited credit, global capital can outbid local residents and businesses.<\/b>\u00a0Over time, profitable enterprises and assets end up in corporate hands.<\/p>\n

Consider the typical family farm<\/b>, not just in America but in Germany, Australia, etc. It’s hard work squeezing a livelihood from the land in a market dominated by a handful of global corporate giants and their state handmaidens, and so unsurprisingly many in the next generation have opted for corporate-state jobs in urban areas rather than shoulder the financial risks of continuing the family farm.<\/p>\n

A neighboring farmer might be interested in buying, be he\/she will have to borrow the money at (say) 4%.<\/p>\n

The global corporation can sell bonds (i.e. borrow money) at less than 1%<\/b>. The lower cost of capital enables the corporation to outbid local farmers for the land, and this low cost of borrowing also enables the corporation to fund capital-intensive\u00a0economies of scale<\/i>\u00a0that are beyond the reach of family farms.<\/p>\n

The net result is the nation’s farmland, its core productive asset, slides inevitably into corporate ownership.<\/b>\u00a0Anyone who resists selling out is crushed by low prices (corporate farms can over-produce and survive low prices, family farms cannot), or they are crushed by the disadvantages of being an “outsider” selling to the corporate supply chain, which favors in-house suppliers or large corporate producers.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

Governments Change, the Corporatocracy Endures Ultimately, the dominance of global capital (the Corporatocracy) is not financial– it’s political. One little-remarked consequence of the central banks’ policies of near-zero interest rates and quantitative easing is the unrivaled dominance of mobile global capital, i.e. the Corporatocracy.\u00a0The source of corporate political power is the ability to borrow essentially […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,6],"tags":[124,127,3867,175,363,379,4924,662,1940],"class_list":["post-21391","post","type-post","status-publish","format-standard","hentry","category-economics","category-liberty","tag-central-banks","tag-charles-hugh-smith","tag-corporatocracy","tag-credit","tag-global-capital","tag-government","tag-oftwominds","tag-quantitative-easing","tag-zero-interest-rate-policy"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21391","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21391"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21391\/revisions"}],"predecessor-version":[{"id":21392,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21391\/revisions\/21392"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}