Global Meet-Up #2 (New York City) The Eschatology of Capitalism

So let me, um, first explain the, in very simplistic terms, the nature of the global economy that we have today.

Okay? So there are two main pillars.

There is the Middle East, the GCC, and then there is East Asia.

And how the current economy works is the GCC provides the world with cheap energy.

Okay? So this energy is sold primarily to East Asia, and East Asia of course is the manufacturing hub of the world.

So it takes the energy, turns it into manufactured goods, and then it moves over to the West, uh, which consumes these manufactured goods.

And this, in very simplistic terms, is how the global economy is structured.

Now, there is a particular quirk to this system, and it's all being, um, undergirded by the US dollar as the global re- reserve currency.

So what happens is the GCC sells the, uh, energy in US dollars, and then US dollars is recycled back into the US economy.

Same thing with East Asia, where East Asia will sell its manufactured goods in US dollars and it, it will manufacture the, uh, it, and then it will recycle the US dollars back into the US economy.

Okay? And the idea of the United States as a global reserve currency, it is unique in human history and it has been a disaster [laughs] for the United States as a nation state, okay? And there are three reasons why.

Um, the first reason why is that the United States loses all financial independence.

Okay? So the United States must guarantee the free flow of US dollars, and United States, um, has to create a financial system in order to facilitate the free flow of capital around the world.

And this is not good for [laughs] the United States because you lose financial, uh, independence.

Um, the idea of, of this is the Eurodollar system.

Now, now, what, the idea of the Eurodollar system is all the US dollars are outside the United States, and quite honestly, we have no idea how much US dollars is outside the United States.

Um, and so this Eurodollar sy- system, it actually makes no sense from a national perspective.

There are no, you have absolutely no idea how much US dollars are in circulation.

You have absolutely no control over how it is circulated, okay? So that's the first problem with this system.

The second problem with this system is financialization, which basically means that i- in order for this system to work, this global economy to, to work, the United States has to become the financial center of the world and shift resource extraction and manufacturing to the other parts of the world.

So you hollow out your manufacturing sector.

You no longer produce anything.

You just speculate, okay? And we, we understand the problem with this system, it leads to corruption.

Corruption, of course, just means Washington, DC.

Washington, DC is the most corrupt place on this planet.