Capitalism is Dead - How the System was Worked to Death in easy to understand terms. Throw away your calculator. Here's how the Big Greed Boy & Girls make the big bucks.
Throw away your calculator. Here's how the Big Greed Boy & Girls make the big bucks!
"The long run is a misleading guide to current affairs. In the long run we are all dead." John Maynard Keynes
And, therefore, the trick ("The Game") is to leave the
biggest bill for the next guy. A painful
lesson most of America learned from Big Greed when we all got stuck with the
bill from Wall Street pyramid scheme called "securitization" or "derivatives"
or "collateralized debt obligations" or any other word or phrase as a euphemism
Keynes Distorted by Author Chaz Valenza by International Monetary Fund
Here's the math:
Sales $ minus Cost = Profit or (Loss).
Run such a business in today's world?
Good luck little man or woman.
I make you a sandwich at my store: $5.
Cost of bread, mustard, cold cuts, wrapper: $1. Cost of store rent, insurance, taxes, utilities,
et cetera per sandwich sold: $2. Gross Profit:
Here's where we bring in "The Players," namely accountants, rating agencies, investment bankers,
rocket scientists, statisticians, security traders and other notable geniuses
in on "The Game." Note: Without
complicity of "The Players" you are otherwise not allowed to entry the world of
big business fraud, "The Game."
Business Plan ("The Plan"):
Build 1,000 sandwich shops at $1 million each (prima facie absurd, but currently done
Proposal: $1 billion to build shops
billion working capital to pay everyone
Sell long term, forever outstanding or until bankruptcy, investments to raise $2 billion.
Grow at 1,000 more stores per year.
Fund store growth from cash flow "profits," but never figure
in paying back investors.
Let nobody use a calculator to consider paying off investment,
as we will all be dead in the long run.
Pay "The Players," again everyone in on "The Plan," exorbitant
returns in the short run, while they are alive, so nobody blows the whistle.
Pay workers (non-willing "Sub Players" with little choice), making
and selling the sandwiches, as little as possible.
Out-source any work possible to countries with even lower
wages ("Sub-sub Players?")
Under cut competition and employ predatory pricing via
national advertising to eliminate small potatoes competition since you don't really care if you make a profit in the
Shift any and all possible costs to others. In "The Game" such costs are called
externalities. For example: pollution,
health care, retirement, roads needed to reach your stores, gas to run the cars
to get to your cheap prices, etcetera.
Run business at loss giving huge paydays and bonuses to "The
Players" in "The Plan" until bankruptcy or death, otherwise known as the end of
Or, cook books to show paper profit and continue making pay-offs
to keep "The Players" and "Sub Players" silent for as long as possible.
Diversify using same obfuscation in as many industries and
sectors as possible: retail shopping, hardware, casual dining, etc.
Employ twists to "The Game."
Find ways to have government purchase product or grant loans
to purchase product from you. For
example: for profit education, housing, gambling, oil, farming, military
industrial products, etcetera.
Find ways to have government mandate that your product must
be purchased by everyone. For example:
auto insurance, home insurance, medical insurance, vaccinations, code required
building products, mandatory inspections, etcetera.
Now, not all of the above is necessarily bad, building codes
for example, but all of it has now been taken to an extreme with capital
flowing only to "The Plans" that are playing "The Game" and are sure bets for
"The Players" leaving the rest of us soon to be, if not already, "Sub Players"
or "Sub-sub Players" or out in "The Cold."
So, keep using your debit and credit cards, buying fast
food, going to Big Box stores, banking at corporate banks, playing the stock
market with your retirement, etcetera.
In the long run we are all dead.
What a wonderful world to leave to your children.
Chaz Valenza is writer and small business owner in New Jersey. He earned his MBA from New York University's Stern School of Business. His current feature film project is "Single Point Failure" an insider's account of how the Reagan Administration caused the greatest tragedy of the space age based on Richard C. Cook's book "Challenger Revealed." He is a former Director of Public Information for Planned Parenthood of NYC. His website is: www.WordsWillNever.com